A bipartisan bill to strengthen co-ops in rural US communities was introduced to Congress by representatives David Valadao (Republican, California) and Josh Riley (Democrat, New York) on 6 March.
The Strengthening Rural Cooperatives and Communities Act would reauthorise the Rural Cooperative Development Grant (RCDG) program, allocating US$40m annually from FY25 to FY29.
The only federal programme dedicated to advancing domestic co-ops, RCDG provides grants to co-operative development centres improving the economic condition of rural areas by helping communities start, expand or improve rural co-ops through technical assistance.
The bill would remove some barriers which prevent under-resourced rural applicants competing within the programme, and allow the implementation of multi-year grants for applicants with a demonstrated track record of success. The Working Group on Cooperative Development would also be required to submit an annual report detailing their activities to Congress.
The National Cooperative Business Association (NCBA-Clusa) welcomed the bill.
“NCBA-Clusa applauds representatives Valadao and Riley for their bipartisan recognition of cooperatives as the engines of rural economies,” said president and CEO Doug O’Brien. “As the only federal programme solely dedicated to co-operative development, the improvements in this bill will ensure the Rural Cooperative Development Grant programme can continue to create better quality jobs while preserving small businesses and co-operatives at the heart of rural America.”
“Co-operatives are the backbone of rural communities, providing critical services like healthcare, housing, and childcare,” said Valadao. “By strengthening federal support for these businesses, we can help our rural economies grow and ensure Central Valley families have access to the resources they need. I’m proud to reintroduce this bill with Congressman Riley to invest in the future of our rural communities.”
“Co-operatives put funding directly into the hands of the people who build and sustain our rural communities,” said Riley. “I’m proud to work across the aisle with Congressman Valadao on this common-sense, bipartisan effort to invest in Upstate New York and the Central Valley, not big corporations and monopolies.”
