Last week the Senate debated a “minibus” spending bill that includes the FY 2012 Transportation, Housing and Urban Development, Commerce, Justice, Science and Agriculture appropriations bills.
When the Senate returns from recess on October 31st, it will resume debate on amendments to the minibus before taking a final vote. Among the amendments to be considered prior to a final vote is one offered by Senator Tom Coburn (R-OK) that would cut USDA’s rural development programs by $1 billion, representing a draconian 40 percent cut.
USDA Rural Development highly leverages appropriated funding by awarding much of its funding as low-interest loans or loan guarantees. Rural Development currently has a $155 billion portfolio of loans and will administer $20 billion in loans, loan guarantees and grants in FY 2011. This funding helps rural individuals, communities and businesses obtain the financial and technical assistance needed to address their diverse and unique needs. Senator Coburn argues that many of these programs are duplicative to programs in other federal agencies that are also available to rural America.
- Posted by Jennifer Imo, The Ferguson Group
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