Today, as President Joe Biden’s $2 trillion infrastructure bill is debated in Congress, it’s worth recalling that this isn’t the first time the US has faced an infrastructure deficit. “By the 1930s nearly 90 percent of US urban dwellers had electricity, but 90 percent of rural homes were without power. Investor-owned utilities often denied service to rural areas, citing high development costs and low profit margins,” recalls one account.
The policy response: rural electric cooperatives (RECs). In 1935, President Franklin Delano Roosevelt signed Executive Order No. 7037, establishing the Rural Electrification Administration—today’s Rural Utility Service (RUS)—which provided low-cost loans to co-ops to wire rural America; by 1953, 90 percent of rural Americans had power.
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