More than 130 members of Congress have signed onto bipartisan letters urging appropriators to approve “the highest possible funding” for the Rural Utilities Service Electric Loan Program amid electric cooperatives’ “unprecedented demand” for loans.
The RUS letters—circulated by key congressional leaders in both chambers—reflect a new urgency this year amid growing demand for power from huge data centers that support artificial intelligence and from companies bringing their manufacturing plants back to the U.S.
At the same time, the supply chain for some transformers and other electric grid equipment has tightened, driving up costs for co-ops as they upgrade aging infrastructure and build new systems.
RUS is authorized to make $7 billion in loans for rural electric infrastructure in 2026, but expected demand already exceeds that level. NRECA supports increased funding and flexibility for fiscal year 2027 to meet rapidly growing system needs.
“Demand for electricity continues to increase and so does the cost to electric cooperatives to serve that demand,” said Jason Cooke, a legislative affairs director at NRECA. “We are grateful that members of Congress recognized the situation electric co-ops face and advocated for the RUS Electric Loan Program to grow to meet those escalating needs.”
House Agriculture Chairman Glenn “GT” Thompson, R-Pa., and ranking member Angie Craig, D-Minn., led the effort in their chamber, sending a letter to leaders of the House Appropriations subcommittee that has jurisdiction over funding for rural development programs. A total of 113 House members, representing both parties, signed the request.
“As you may know, the RUS Electric Loan Program is experiencing unprecedented demand as electric cooperatives replace existing infrastructure and make upgrades to meet the growing need for electricity across the country,” the letter says.
“We respectfully request the highest possible funding for the RUS Electric program in fiscal year 2027 to meet this growing demand.”
The Senate letter, led by Sens. Thom Tillis, R-N.C., and Raphael Warnock, D-Ga., makes an identical request to Senate appropriators and had at least 20 signers as of Tuesday.
Co-ops use RUS electric loans to finance electricity distribution, transmission and generation to provide affordable, reliable electric service to approximately 42 million people, the letters say.
They also point out that electric co-ops repay RUS loans with interest, helping to reduce the federal deficit.
“In fiscal year 2024, electric loans netted $179 million to the U.S. Treasury,” the letters say.
Signers of the letters also called for RUS to support a wide range of projects.
“We urge that RUS lending continue to be driven by the needs of the borrower rather than limiting the types of projects eligible,” the letters say. “This flexibility will help meet the diverse challenges of RUS electric borrowers and ensure loans are available to support distribution projects, transmission projects, environmental upgrades or the construction of new generation sources.”
The letters conclude that “lowering the U.S. deficit and keeping co-op consumers’ electric bills affordable are mutually beneficial goals we can all support.”
Erin Kelly is a staff writer for NRECA.