Legal Definitions - Rural Electrification Administration

The Rural Electrification Administration (REA) was a former agency in the U.S. Department of Agriculture that provided loans to rural electric and telephone utilities. Its main goal was to bring electricity to rural areas that were not served by private companies.

For example, in the 1930s, only 10% of rural homes had electricity, while almost all urban homes did. The REA helped to change this by providing loans to rural electric cooperatives, which allowed them to build power lines and bring electricity to their communities.

In 1994, the REA was replaced by the Rural Utilities Service (RUS), which continues to provide loans to rural utilities for infrastructure projects.

Today, the RUS helps to fund projects like building broadband networks in rural areas, which can help to bridge the digital divide between urban and rural communities.