Massive Investment for Rural Tennessee: USDA Allocates $89 Million for Community Improvements

By Cassandra Stephenson

The U.S. Department of Agriculture (USDA) has committed $89 million—primarily in loans—to enhance the quality of life in rural Tennessee through improvements in electric utilities, vital infrastructure, and education.

Major Investment in Electric Utilities

Leading the way in this investment is the Duck River Electric Membership Corporation, a Shelbyville-based electric cooperative serving nearly 83,000 customers across 17 counties. The cooperative is set to receive a substantial $64.7 million loan aimed at expanding and improving 239 miles of electrical lines, which will connect an additional 7,230 customers. This initiative also follows the cooperative’s earlier collaborations with the USDA’s Rural Economic Development Loan and Grant Program to foster job growth through various community projects.

Broader Community Support

The USDA’s Rural Development programs seek to cultivate prosperity in rural areas by enhancing infrastructure, utilities, business, healthcare, education, and housing.

In addition to the loan for the electric cooperative, the remaining $24.3 million allocated will facilitate significant developments throughout Tennessee, including:

• Upgrades to water lines and pump stations
• Street repavement initiatives
• Improvements to wastewater treatment systems

Investment in Education

Educational institutions are also set to benefit significantly from this funding. For instance, Life Christian Academy in Sumner County will receive a $3.4 million loan to expand its daycare program through fifth grade. Ivy Academy in Hamilton County has been awarded a $5.1 million loan to construct a high school career technology center, targeting student careers in mechanical, electrical, plumbing, and automotive fields.

Secretary Rollins’ Announcement

U.S. Secretary of Agriculture Brooke Rollins announced the investment while participating in the Future Farmers of America breakfast in Lebanon on August 18. During her visit, Rolls highlighted an initiative to halt solar panel subsidies and addressed recent $31 million in federal funding cuts affecting agricultural research at the University of Tennessee Institute of Agriculture.

Rollins clarified that these funding adjustments target programs “that did not align with the president’s vision of putting farmers first.” Among the programs impacted was a $30 million project designed to broaden markets for climate-smart beef, dairy, and other livestock.

Additional Investments

The USDA’s commitment to Tennessee doesn’t stop there. Other key investments include:

• A $2.3 million loan for Cunningham Utility District in Montgomery County to extend water lines
• A $2 million loan for Celina in Clay County to enhance city streets
• A $2.75 million loan for the Marshall County Emergency Communications District to construct a new 911 dispatch center
• A $5.4 million loan for Hallsdale Powell Utility District in Knox County for wastewater line upgrades
• Financial assistance to Cooper Basin Utility District in Polk County for water line construction and pump station development
• A $316,000 grant and $397,000 loan for Webb Creek Utility District in Sevier County for wastewater system improvements

Finally, numerous towns including Erin, Vanleer, and Gallaway will receive SEARCH grants to evaluate their water and wastewater systems for upgrades.

Sam Stockard contributed.

Tennessee Lookout is an affiliate of States Newsroom, the nation’s largest state-focused nonprofit news organization, supported by grants and donations.

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