Rural Electrification Administration
The Rural Electrification Administration (REA) was a U.S. government agency established in 1935 as part of the New Deal programs to bring electricity to rural areas of the country. At the time, many rural areas lacked access to electricity, which was primarily available in urban areas.
The REA provided low-cost loans to electric cooperatives and other entities to finance the construction of electric power infrastructure in rural areas. These loans helped fund the building of power lines, substations, and generation facilities. The loans had low interest rates and long repayment periods, making it more feasible for rural communities to afford the costs of electrification.
The creation of the REA had a significant impact on rural America. Through its assistance, millions of farmers, ranchers, and rural residents gained access to electricity for the first time. This led to improvements in living standards, increased agricultural productivity, and the growth of rural industries.
Over time, the REA expanded its activities to include other rural development initiatives, such as providing loans for telephone service and the construction of water and sewer systems. In 1994, the Rural Electrification Administration was reorganized into the Rural Utilities Service (RUS), which continues to provide loans and support for rural infrastructure projects today.