US Department of Agriculture (USDA)

Research funding levels, with the exception of $150 million in Congressional earmarks, remain relatively flat between FY 2001 appropriations and the President's FY 2002 request. Economic development and Digital Divide programs, on the other hand, take several hits. Selected agency program highlights include:

• Distance Learning & Telemedicine (DLT) Loans and Grants – continuation funding levels from FY 2001 of $25 million in grants and $300 million in loans to support access to advanced telecommunications services for improved education and health care in rural areas. (See Broadband below though for earmark)
  • Broadband Telecom Services in Rural America – $100 million in direct loans and $2 million in loan/grant combinations taken from the DLT pool (FY 2001 $100 million, pilot program) to support broadband transmission and local dial-up Internet services in rural areas.
• Fund for Rural America – Authorization to use the $30 million balance of funds provided in FY 2000 is requested. Funds would be split evenly between rural development activities and research, education and extension grants. An additional $60 million in new FY 2002 appropriations would be blocked from use until FY 2003.
• Empowerment Zones & Enterprise Community Program – continuation funding of $15 million to support Round II EZ/EC Zones
• Business and Industry Guaranteed Loans – $1 billion (decrease of $556 million from FY 2001); guarantee fees charged to applicant businesses would increase from 2 percent to 3.25 percent. The related Business and Industry Guaranteed Disaster/Emergency Assistance Loans program would be eliminated in FY 2002 (FY 2001 $1.16 billion) as are the Business and Industry Direct Loans (FY 2001 $50 million)
• Rural Economic Development Grants – undetermined funding level (FY 2001 $8 million). Historically the program provides funds for rural economic development and job creation projects including funding for project feasibility studies, start-up costs, incubator projects, and other expenses for the purposes of fostering rural development. Program funds are derived from the interest differential on Rural Utilities Service borrower's cushion of credit accounts funding. The President's budget request proposes to use the same funds for other programs, "therefore very little if any funds derived from the interest on the cushion of credit payments will be available for the grant program in 2002."
• Rural Business Enterprise Grants – $41 million (decrease of $6 million from FY 2001) to fund non-profit and public efforts to support small and emerging businesses outside urbanized areas.
• Rural Business Opportunity Grants – $4 million (decrease of $1 million from FY 2001) to support technical assistance and planning activities within non-profit and public organizations to improve economic conditions in rural areas.
• Research, Education, and Economics – $2.14 billion (a reduction of $173 million from FY 2001 – eliminates $150 million from 300 Congressional earmarks)
  • Agricultural Research Service – $960 million (increase of $19 million over FY 2001 appropriation) – $12 million new funding for exotic pest/plant prevention and control, $7.5 million for ag-related biotech, and $5 million for research into mad cow disease. A portion is also redirected for Administration priority areas, such as $15 million for bio-based products, bioenergy research, and new uses for agricultural products.
  • Cooperative State Research, Education and Extension Service

• National Research Initiative – $106 million (no change from FY 2001 level) for competitive research grants into agricultural genomics, food safety, environment and natural resource management, and competitiveness and profitability of agriculture.

• Initiative for Future Agriculture & Food Systems – $120 million (no change from FY 2001 level) for competitive grants for research, extension and education to address critical issues related to food production, environmental quality, natural resources and enhanced economic viability of smaller-scale farmers.