U.S. Department of Agriculture launches modernization efforts for loan and grant systems

Key Takeaways

On June 4, the U.S. Department of Agriculture (USDA) announced a major effort to modernize more than 130 loan and grant systems that support farmers, ranchers and rural communities. The initiative will replace outdated legacy systems, including some dating back to the 1960s, and transition many programs away from paper-based application processes.

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The new platform will feature a single customer file, streamlined application intake,  eligibility tools and online payment capabilities. Once implemented, the system is expected to manage approximately 1.2 million active customer files in a centralized location, with the goal of reducing processing times, strengthening cybersecurity protections and improving access to USDA programs and services.

Why this matters for counties

For counties, particularly those in rural areas, USDA Rural Development (RD) programs are an important source of federal funding and technical assistance. Annually, USDA RD helps finance thousands of county-run projects that support infrastructure, housing, water and wastewater systems, broadband deployment, community facilities and economic development initiatives in rural America. Any major changes to USDA RD programs may impact how counties access federal funding and support.  

USDA has not announced a timeline for full implementation of the updated system and has indicated that modernization efforts will occur over time as existing systems are consolidated into the new platform. NACo will continue to monitor USDA's loan and grant modernization effort and share updates with counties as additional information becomes available.