Rural Electrification Act

Rural Electrification Act
Great Seal of the United States
Other short titlesRural Electrification and Telephone Service Act of 1936
Long titleAn Act to provide for rural electrification, and for other purposes.
NicknamesRural Electrification Act of 1936
Enacted bythe 74th United States Congress
EffectiveMay 20, 1936
Citations
Public lawPub. L. 74–605
Statutes at Large49 Stat. 1363
Codification
Titles amended7 U.S.C.: Agriculture
U.S.C. sections created7 U.S.C. ch. 31 § 901 et seq.
Legislative history
Franklin Delano Roosevelt (center) signs the Rural Electrification Act with Representative John Rankin (left) and Senator George William Norris (right)

The Rural Electrification Act of 1936 (REA), enacted on May 20, 1936, provided federal loans for the installation of electrical distribution systems to serve isolated rural areas of the United States.

The funding was channeled through cooperative electric power companies, hundreds of which still exist today.[1] These member-owned cooperatives purchased power on a wholesale basis and distributed it using their own network of transmission and distribution lines. The Rural Electrification Act was one of many New Deal proposals by President Franklin D. Roosevelt to remedy high unemployment during the Great Depression.

  1. ^ Sablik, Tim (First Quarter 2020). "Electrifying Rural America". Econ Focus. Federal Reserve Bank of Richmond.