Rural Electrification Act of 1936, United States
Published: September 3, 2006, 10:15 pm
Updated: September 3, 2006, 10:15 pm
This article has been reviewed by the following Topic Editor:
Cutler J. Cleveland
Franklin Roosevelt signs the Rural Electrification Act of 1936 with Representative John Rankin (Left) and Senator William Norris (right). Photo: Library of Congress
In the 1930s, electricity was widely available in cities but largely unavailable in farms, ranches, and other rural places. The impact of the Depression had revealed in stark terms the disparity in standards of living between city dwellers and rural residents. Congress responded to this problem, initially by providing funding for electrical service to rural areas and providing resources to make water available where droughts and water shortages had adversely effected rural residents. In the first attempt by the U.S. government to bring power to rural areas of the country, Congress passed the Rural Electrification Act in 1936. The law was proposed by Representative John E. Rankin and Senator George William Norris. The act signed into law by President Franklin Delano Roosevelt.
The Act established the Rural Electrification Administration (REA), with a provision of ten years. The REA was authorized to offer loans to companies willing to supply electricity to rural areas not already served by any other company. The U.S. government promised low-interest rates and tax credits to companies willing to construct and operate power generating plants and transmission lines to supply electricity to rural areas. Rural cooperatives emerged as the primary borrowers of REA funds, and by the end of 1936 approximately 100 companies in 26 states had received loans from the REA. A 1944 amendment to the Act increased loan terms from 25 to 35 years and made the REA a permanent public administration. In 1949, further amendments made rural telephone companies eligible to receive loans under the Act. In 1994, the Rural Electrification Administration was renamed the Rural Utilities Service (RUS), but the agency retained the same primary mission.
Further Reading
Rural Electrification Act of 1936: Full Text (Center for Columbia River History)
Rural Electrification Act of 1936 (U.S. Department of Agriculture)
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Citation
Ida Kubiszewski PhD (Lead Author);Cutler J. Cleveland (Topic Editor) "Rural Electrification Act of 1936, United States". In: Encyclopedia of Earth. Eds. Cutler J. Cleveland (Washington, D.C.: Environmental Information Coalition, National Council for Science and the Environment). [First published in the Encyclopedia of Earth September 3, 2006; Last revised Date September 3, 2006; Retrieved May 25, 2013 <http://www.eoearth.org/article/Rural_Electrification_Act_of_1936,_United_States>
The Author
Stewardship Committee
The Encyclopedia of Earth
Dr. Ida Kubiszewski is a Senior Lecturer at the Crawford School of Public Policy at Australian National University. She is also a co-founder and former-Managing Editor the Encyclopedia of Earth. Dr. Kubiszewki is currently working as the Managing Editor for a magazine/journal hybrid called Solutions. Solutions is an outlet for discussions focusing on solutions to the complex problems we are now facing in ... (Full Bio)
Franklin Roosevelt signs the Rural Electrification Act of 1936 with Representative John Rankin (Left) and Senator William Norris (right). Photo: Library of Congress
In the 1930s, electricity was widely available in cities but largely unavailable in farms, ranches, and other rural places. The impact of the Depression had revealed in stark terms the disparity in standards of living between city dwellers and rural residents. Congress responded to this problem, initially by providing funding for electrical service to rural areas and providing resources to make water available where droughts and water shortages had adversely effected rural residents. In the first attempt by the U.S. government to bring power to rural areas of the country, Congress passed the Rural Electrification Act in 1936. The law was proposed by Representative John E. Rankin and Senator George William Norris. The act signed into law by President Franklin Delano Roosevelt.
The Act established the Rural Electrification Administration (REA), with a provision of ten years. The REA was authorized to offer loans to companies willing to supply electricity to rural areas not already served by any other company. The U.S. government promised low-interest rates and tax credits to companies willing to construct and operate power generating plants and transmission lines to supply electricity to rural areas. Rural cooperatives emerged as the primary borrowers of REA funds, and by the end of 1936 approximately 100 companies in 26 states had received loans from the REA. A 1944 amendment to the Act increased loan terms from 25 to 35 years and made the REA a permanent public administration. In 1949, further amendments made rural telephone companies eligible to receive loans under the Act. In 1994, the Rural Electrification Administration was renamed the Rural Utilities Service (RUS), but the agency retained the same primary mission.
Further Reading
Rural Electrification Act of 1936: Full Text (Center for Columbia River History)
Rural Electrification Act of 1936 (U.S. Department of Agriculture)
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