USDA Announcement
The U.S. Department of Agriculture has announced an $89 million rural Tennessee utilities investment. According to the agency, the funds will be distributed primarily as low-interest loans to improve utility infrastructure in small communities.
Planned Projects
The USDA stated that the USDA rural Tennessee utilities investment will support projects in several areas:
- Water and Wastewater Systems: Upgrades and modernization of treatment plants and distribution networks.
- Electric Service: Assistance for cooperatives to extend or improve power delivery to rural households and businesses.
- Infrastructure Improvements: Projects designed to enhance health, safety, and reliability of basic services.
The agency notes that these projects are intended to ensure long-term stability and resilience in rural areas.
Expected Benefits
According to the USDA, the investment will benefit families, businesses, and local governments by:
- Providing more reliable access to clean water.
- Reducing the risk of service disruptions for electricity.
- Supporting economic activity through improved infrastructure.
The department also emphasized that modern utilities are essential to maintaining public health and attracting economic development in rural communities.
Loan Structure
Most of the $89 million comes in the form of loans. The USDA explained that these loans are structured with favorable terms to make projects affordable for rural utilities. By using loans, the agency said it can fund immediate improvements while allowing communities to repay costs over time.
Investment Breakdown
According to USDA and Tennessee state officials, here’s how the USDA rural Tennessee utilities investment breaks down:
- Electric Utilities: Duck River Electric Membership Corporation will receive the largest award—a $64.7 million loan. The cooperative plans to build and improve 239 miles of line and connect approximately 7,230 new customers.
- Water and Wastewater Improvements: About $24.3 million in loans and grants will go toward repairing water lines, enhancing pump stations, and upgrading wastewater systems.
- Educational Facilities: Life Christian Academy (Sumner County) receives $3.4 million, and Ivy Academy (Hamilton County) receives $5.1 million—both as loans to expand and enhance school facilities.
- Local Community Projects: Several smaller utilities and towns will benefit from targeted funding:
- Cunningham Utility District: $2.3 million loan for distributing water to 70 new households.
- Celina: $2 million loan for street repaving.
- Marshall County Emergency Communications: $2.75 million loan to establish a new 911 dispatch center.
- Hallsdale–Powell Utility District: $5.4 million loan for wastewater line improvements.
- Cooper Basin Utility District: $530,000 loan and $729,000 grant for water line construction and booster pump station.
- Webb Creek Utility District: $397,000 loan and $316,000 grant to replace outdated wastewater lines.
- Selmer: $1 million loan and $600,000 grant to fix a jail pump station and prevent sanitary issues.
- Erin, Vanleer, and Gallaway: Each receives a $30,000 SEARCH grant to conduct feasibility or planning studies for water/wastewater improvements.
Info from Successful Farming
Broader USDA Program
The USDA rural Tennessee utilities investment is part of a national initiative to strengthen rural America. The department described these projects as part of its long-term commitment to ensuring rural residents have access to the same level of basic services as urban areas.
Source
Associated Press. USDA invests $89M, mostly in loans, to improve rural Tennessee utilities. Agriculture.com, 2025.
