The Rural Electric Program refers to the nationwide effort that brought reliable electricity to rural America through member-owned, non-profit cooperatives. Sometimes called the Rural Electrification Administration (REA) Program—now known as the Rural Utilities Service (RUS)—this initiative transformed rural life by extending electric power to communities long overlooked by investor-owned utilities. While the RUS remains a vital part of this effort, the broader Rural Electric Program represents the collective work of thousands of electric cooperatives serving rural communities across the nation.
From Darkness to Light in Rural America
In the early 1930s, electricity was largely confined to urban areas. Less than 3% of rural America had access to electric service, leaving most farms and small towns without the modern conveniences that power provided.
When Franklin D. Roosevelt became President in 1933, he urged investor-owned utilities to extend electric service into rural regions. When they refused, he acted. On May 11, 1935, Roosevelt issued an executive order creating the Rural Electrification Administration (REA) to make low-interest federal loans available for rural electrification projects.
Birth of the Cooperative Model
Despite the government’s offer, private utilities still declined to serve sparsely populated areas. In response, Senator George W. Norris of Nebraska and Congressman Sam Rayburn of Texas introduced legislation to make the REA a permanent agency. President Roosevelt signed the Rural Electrification Act into law on May 21, 1936. Soon after, states across the nation passed enabling laws allowing citizens to form non-profit electric cooperatives and apply for REA funding.
Farmers and rural residents came together, pooling resources, securing easements, and building power lines. This grassroots movement—often called the REA Movement—sparked one of the most successful community-driven infrastructure efforts in American history.
A Legacy of Progress
Within a few decades, 99% of rural America was electrified. The success of the Rural Electric Program inspired similar cooperative models worldwide, extending the benefits of affordable, reliable electricity to millions.
Today, the Rural Utilities Service (RUS)—part of the U.S. Department of Agriculture—continues to provide financing to electric, telephone, and broadband cooperatives, helping improve and expand essential services across rural communities.
Powering the Future of Rural America
The Rural Electric Program remains one of the most transformative initiatives in U.S. history. With electricity came opportunity—rural areas grew stronger as agriculture, business, and industry flourished side by side. What began as a movement to light the countryside has evolved into a lasting partnership between rural citizens, cooperatives, and communities—proving that when people work together, they can power progress for generations.
