House, Senate committees approve $5.5 billion loan level for electric co-ops
The Senate and House Appropriations Committees recently approved $5.5 billion for fiscal 2018 for the Rural Utilities Service (RUS) program that electric cooperatives use to build and maintain infrastructure.
This amount is consistent with the funding sought by electric co-ops and proposed by President Trump as well as the funding levels for fiscal 2017 and 2016.
“We’re pleased that many of these two committees’ actions reflect that understanding and we’ll continue make the case as the appropriations process moves on,” said Kirk Johnson, National Rural Electric Cooperative Association (NRECA) senior vice president of government relations.
This year’s measures differ from past bills in that they don’t restrict the types of projects that RUS loans may be used for.
The approval was part of a broader agriculture spending bill that also addressed other co-op priorities. The appropriations bills also contain $750 million for the Guaranteed Underwriter program, which permits qualified private lenders to provide guaranteed financing to electric cooperatives.
Trump’s budget proposed eliminating the Rural Economic Development Loan and Grant program (REDLG). The Senate bill included $42 million for the program, while the House bill included $33 million.
