Rule2024-09446
Update to Methodology and Formulas for Allocation of Loan and Grant Program Funds
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 1, 2024
Effective
May 1, 2024
Issuing agencies
Agriculture DepartmentRural Housing ServiceRural Business-Cooperative ServiceRural Utilities Service
Abstract
The Rural Business-Cooperative Service, Rural Housing Service, and Rural Utilities Service (RBCS, RHS, RUS, or collectively referred to as the Agency), of the Rural Development (RD) mission area within the U.S. Department of Agriculture (USDA), is issuing this final rule to update the data it uses to determine a State's percentage of national nonmetropolitan unemployment income. The Agency is amending two regulations to correct the source for the data and provide transparency on its process of determining state funding allocations for various Agency programs.
Full Text
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<title>Federal Register, Volume 89 Issue 85 (Wednesday, May 1, 2024)</title>
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[Federal Register Volume 89, Number 85 (Wednesday, May 1, 2024)]
[Rules and Regulations]
[Pages 34959-34961]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09446]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
7 CFR Parts 1780 and 1940
[Docket No. RUS-24-AGENCY-0004]
Update to Methodology and Formulas for Allocation of Loan and
Grant Program Funds
AGENCY: Rural Business-Cooperative Service, Rural Housing Service, and
Rural Utilities Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Business-Cooperative Service, Rural Housing Service,
and Rural Utilities Service (RBCS, RHS, RUS, or collectively referred
to as the Agency), of the Rural Development (RD) mission area within
the U.S. Department of Agriculture (USDA), is issuing this final rule
to update the data it uses to determine a State's percentage of
national nonmetropolitan unemployment income. The Agency is amending
two regulations to correct the source for the data and provide
transparency on its process of determining state funding allocations
for various Agency programs.
DATES: The effective date of this final rule is May 1, 2024.
FOR FURTHER INFORMATION CONTACT: John Delaney at <a href="/cdn-cgi/l/email-protection#f09a9f989ede94959c919e9589b085839491de979f86"><span class="__cf_email__" data-cfemail="2842474046064c4d4449464d51685d5b4c49064f475e">[email protected]</span></a>,
Senior Policy Advisor, Rural Development Innovation Center, USDA, 1400
Independence Avenue SW, Mail Stop 0793, Room 6138-South, Washington, DC
20250-0793; or call (202) 720-9705.
SUPPLEMENTARY INFORMATION:
Background
Rural Development is a mission area within USDA comprised of RBCS,
RHS and RUS. Rural Development's mission is to increase economic
opportunity and improve the quality of life for all rural Americans and
RD meets its mission by providing loans, grants, loan guarantees, and
technical assistance through a multitude of programs aimed at creating
and improving businesses, housing and infrastructure throughout rural
America.
The Agency receives funding through the annual appropriations
process. Several programs under the Agency apply a formula to determine
how much each state should receive in a funding allocation for a given
fiscal year. Where applicable, the formulas have multiple components
that include a state's percentage of the national nonmetropolitan
unemployment income figure. The regulations that are part of this
rulemaking currently cite the Bureau of Labor Statistics (BLS) as the
source for the national nonmetropolitan unemployment information, but
this data is not publicly available. The Agency is changing the cited
data source to the Census Bureau's American Community Survey (ACS).
The Agency is amending the regulations associated with this
rulemaking to make the source of data clear. This amendment is not
changing a current process or procedure.
Summary of Changes
7 CFR 1780
1. Section 1780.18(c)(2)(ii)(C) was amended to change the Bureau of
Labor Statistics to 5-year income data from the ACS to correctly cite
the source of data used as part of the allocation calculation.
7 CFR 1940
2. Sections 1940.585(b)(2), 1940.588(a)(2)(ii)(C), and
1940.591(b)(2) were amended to show that the 5-year income data from
the ACS should be used for nonmetropolitan unemployment income and not
BLS. These changes were made to correctly cite the source of data.
Executive Orders/Acts
Executive Order 12866--Classification
This rule is not subject to the provisions of Executive Order 12866
because it has no impact on borrowers or other members of the public.
It is the policy of this Department that rules relating to public
property, loans, grants, benefits, or contracts shall be published for
comments, notwithstanding the exemption in 5 U.S.C. 553 with respect to
such rules. The action, however, is not published for proposed
rulemaking because it involves only internal agency management and
publication for comment is unnecessary.
[[Page 34960]]
Congressional Review Act
This rule is not subject to the Congressional Review Act (``CRA'',
5 U.S.C. 801 et seq.) as the CRA provides an exemption for any rule
relating to agency management or personnel and for rules relating
agency organization, procedure, or practice that does not substantially
affect the rights or obligations of non-agency parties.
Assistance Listing Number (Formally Known as the Catalog of Federal
Domestic Assistance)
The amendments in this final rule apply to an interagency process
and are not directly tied to a funding program where an Assistance
Listing Number is required.
Executive Order 12372--Intergovernmental Consultation
This final rule is amending incorrect citations for an interagency
process and is not subject to the requirements of Executive Order
12372, ``Intergovernmental Review of Federal Programs''.
Paperwork Reduction Act
This final rule contains no new reporting or recordkeeping burdens
that would require approval under the Paperwork Reduction Act.
National Environmental Policy Act
In accordance with the National Environmental Policy Act of 1969,
Public Law 91-190, this final rule has been reviewed in accordance with
7 CFR part 1970 (``Environmental Policies and Procedures''). The Agency
has determined that (i) this action meets the criteria established in 7
CFR 1970.53(f); (ii) no extraordinary circumstances exist; and (iii)
the action is not ``connected'' to other actions with potentially
significant impacts, is not considered a ``cumulative action'' and is
not precluded by 40 CFR 1506.1. Therefore, the Agency has determined
that the action does not have a significant effect on the human
environment, and therefore neither an Environmental Assessment nor an
Environmental Impact Statement is required.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-602) (RFA) generally
requires an agency to prepare a regulatory flexibility analysis of any
rule subject to notice and comment rulemaking requirements under the
Administrative Procedure Act (``APA'') or any other statute. The
Administrative Procedures Act exempts from notice and comment
requirements rules ``relating to agency management or personnel or to
public property, loans, grants, benefits, or contracts'' (5 U.S.C.
553(a)(2)), so therefore an analysis has not been prepared for this
rule.
Executive Order 12988--Civil Justice Reform
This final rule is amending incorrect citations for an interagency
process and is not subject to the requirement of Executive Order 12988.
Unfunded Mandates Reform Act (UMRA)
This rule contains no Federal mandates (under the regulatory
provisions of title II of the UMRA) for State, local, and Tribal
governments or for the private sector. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of the UMRA.
Executive Order 13132--Federalism
The policies contained in this rule do not have any substantial
direct effect on States, on the relationship between the National
Government and the States, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on state and local
governments. Therefore, consultation with the States is not required.
Executive Order 13175--Consultation and Coordination With Indian Tribal
Governments
This final rule is amending incorrect citations for an interagency
process and is not subject to the requirement of Executive Order 13175.
E-Government Act Compliance
Rural Development is committed to the E-Government Act, which
requires Government agencies in general to provide the public the
option of submitting information or transacting business electronically
to the maximum extent possible and to promote the use of the internet
and other information technologies to provide increased opportunities
for citizen access to Government information and services, and for
other purposes.
Civil Rights Impact Analysis
Rural Development has reviewed this rule in accordance with USDA
Regulation 4300-4, Civil Rights Impact Analysis, to identify any major
civil rights impacts the rule might have on program participants on the
basis of age, race, color, national origin, sex, disability, marital or
familial status. Based on the review and analysis of the rule and all
available data, issuance of this final rule is not likely to negatively
impact low and moderate-income populations, minority populations,
women, Indian tribes or persons with disability, by virtue of their
age, race, color, national origin, sex, disability, or marital or
familial status. No major civil rights impact is likely to result from
this final rule.
USDA Non-Discrimination Statement
In accordance with Federal civil rights laws and USDA civil rights
regulations and policies, the USDA, its Mission Areas, agencies, staff
offices, employees, and institutions participating in or administering
USDA programs are prohibited from discriminating based on race, color,
national origin, religion, sex, gender identity (including gender
expression), sexual orientation, disability, age, marital status,
family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Program information may be made available in languages other than
English. Persons with disabilities who require alternative means of
communication to obtain program information (e.g., Braille, large
print, audiotape, American Sign Language) should contact the
responsible Mission Area, agency, or staff office; or the 711 Relay
Service.
To file a program discrimination complaint, a complainant should
complete a Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at <a href="https://www.usda.gov/sites/default/files/documents/ad-3027.pdf">https://www.usda.gov/sites/default/files/documents/ad-3027.pdf</a> from any USDA office, by calling (866) 632-
9992, or by writing a letter addressed to USDA. The letter must contain
the complainant's name, address, telephone number, and a written
description of the alleged discriminatory action in sufficient detail
to inform the Assistant Secretary for Civil Rights (ASCR) about the
nature and date of an alleged civil rights violation. The completed AD-
3027 form or letter must be submitted to USDA by:
a. Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410; or
b. Fax: (833) 256-1665 or (202) 690-7442; or
c. Email: <a href="/cdn-cgi/l/email-protection#e9999b868e9b8884c780879d88828ca99c9a8d88c78e869f"><span class="__cf_email__" data-cfemail="bfcfcdd0d8cdded291d6d1cbded4daffcaccdbde91d8d0c9">[email protected]</span></a>.
[[Page 34961]]
List of Subjects
7 CFR Part 1780
Community development, Community facilities, Grant programs--
housing and community development, Loan programs--housing and community
development, Reporting and recordkeeping requirements, Rural areas,
Waste treatment and disposal, Water supply, Watersheds.
7 CFR Part 1940
Administrative practice and procedure, Agriculture, Environmental
protection, Flood plains, Grant programs--agriculture, Grant programs--
housing and community development, Loan programs--agriculture, Loan
programs--housing and community development, Low and moderate income
housing, Reporting and recordkeeping requirements, Rural areas, Truth
in lending.
Accordingly, for the reasons discussed in the preamble, the Agency
amends 7 CFR parts 1780 and 1940 as follows:
PART 1780--WATER AND WASTE LOANS AND GRANTS
0
1. The authority citation for part 1780 continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005.
Subpart A--General Policies and Requirements
0
2. Amend Sec. 1780.18 by revising paragraphs (c)(2)(ii)(B) and (C) to
read as follows:
Sec. 1780.18 Allocation of program funds.
* * * * *
(c) * * *
(2) * * *
(ii) * * *
(B) For the criterion specified in paragraph (b)(2)(i)(B) of this
section, 5-year income data from the American Community Survey (ACS).
(C) For the criterion specified in paragraph (b)(2)(i)(C) of this
section, the 5-year data from the ACS.
* * * * *
PART 1940--GENERAL
0
3. The authority citation for part 1940 continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; and 42 U.S.C. 1480.
Subpart L--Methodology and Formulas for Allocation of Loan and
Grant Program Funds
0
4. Amend Sec. 1940.585 by revising paragraph (b)(2) to read as
follows:
Sec. 1940.585 Community Facility loans.
* * * * *
(b) * * *
(2) The data source for the first criterion is the most recent
decennial Census data. The data source for the second and third
criteria is the 5-year data from the American Community Survey (ACS).
Each criterion is assigned a specific weight according to its relevance
in determining need. The percentage representing each criterion is
multiplied by the weight factor and summed to arrive at a State factor
(SF). The SF cannot exceed 0.05.
Equation 1 to Paragraph (b)
SF = (criterion (b)(1)(i) x 50 percent) + (criterion (b)(1)(ii) x 25
percent) + (criterion (b)(1)(iii) x 25 percent)
* * * * *
0
5. Amend Sec. 1940.588 by revising paragraph (a)(2)(ii)(C) to read as
follows:
Sec. 1940.588 Business and Industry Guaranteed and Direct Loans,
Rural Business Development Grants, and Intermediary Relending Program.
* * * * *
(a) * * *
(2) * * *
(ii) * * *
(C) For the criterion specified in paragraph (a)(2)(i)(C) of this
section, the 5-year data from the ACS.
* * * * *
0
6. Amend Sec. 1940.591 by revising paragraph (b)(2) to read as
follows:
Sec. 1940.591 Community Program Guaranteed loans.
* * * * *
(b) * * *
(2) The data source for the first criterion is the most recent
decennial Census data. The data source for the second and third
criteria is the 5-year data from the American Community Survey (ACS).
Each criterion is assigned a specific weight according to its relevance
in determining need. The percentage representing each criterion is
multiplied by the weight factor and summed to arrive at a State factor
(SF). The SF cannot exceed 0.05.
Equation 1 to Paragraph (b)
SF = (criterion (b)(1)(i) x 50 percent) + (criterion (b)(1)(ii) x 25
percent) + (criterion (b)(1)(iii) x 25 percent)
* * * * *
Basil I. Gooden,
Under Secretary, USDA, Rural Development.
[FR Doc. 2024-09446 Filed 4-30-24; 8:45 am]
BILLING CODE 3410-15-P
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