USDA Rural Development Announces Actions to Better Serve Rural America

Rural Development Realignment Reinforces Commitment to Rural Communities 

The U.S. Department of Agriculture’s (USDA) Rural Development Mission Area announced a modernization and restructuring effort to strengthen customer service, improve program accessibility, and enhance support for rural communities across the country. This effort aligns with USDA’s broader initiative to modernize operations, increase accountability, and ensure federal resources are positioned where they can deliver the greatest impact.

Rural Development maintains one of the largest field-based presences in the federal government, with more than 3,000 employees serving in over 400 offices throughout rural America. Under this modernization effort, Rural Development will maintain its National Capital Region (NCR) presence to be responsive to Congress, interagency needs, regulatory work, and policy coordination, while relocating select NCR-based positions to St. Louis, Missouri, and Dallas-Fort Worth, Texas.  These new locations will serve as operational hubs supporting loan and grant processing, program management, and maintain our mission of serving rural communities.

“When rural communities collaborate with USDA they deserve a streamlined experience. With this reorganization, that’s exactly what they’ll get,” said Deputy Secretary Stephen A. Vaden. “Realigning Rural Development’s reviews, approvals, and servicing structure, together with significant improvements in the agency’s IT systems, will help rural America achieve more without government getting in the way.”

“Rural Development is, by name and by function, fully focused on the rural communities we serve,” said Todd Lindsey, Acting Under Secretary for Rural Development. “This reorganization injects new attention to our systems and processes that will eliminate unnecessary layers of bureaucracy, improve our ability to engage with our customers, and conduct responsible oversight of federal investments.”

This action follows USDA’s July 24, 2025, announcement outlining the Department’s intent to reorganize around four pillars: aligning workforce size with available resources, relocating resources closer to customers, eliminating excess management layers, and consolidating support functions. Rural Development’s restructuring reflects these priorities and positions the mission area to better meet emerging operational demands while continuing its support for rural America.

Maintaining Strong Field Presence

Program delivery employees in state and regional offices will not be required to relocate, as they already operate in the rural communities they serve. Field staff will continue to lead constituent engagement, stakeholder outreach, and marketing of RD programs. This structure builds on successful models used by national-level RD programs such as Single-Family Housing Guaranteed Loans, Multi-Family Housing Guaranteed Loans, the Electric Program, and the Telecom Program, where program funds are administered centrally.

Streamlining Loan and Grant Processing

Rural Development will consolidate loan origination, processing, and servicing functions under one centralized national framework. Current processes has contributed to inconsistent underwriting and costly delays. Centralization will strengthen quality control, reduce delinquency, and protect taxpayer dollars while ensuring borrowers receive consistent, high-quality service.

Improving IT Systems

A key component of this modernization is a significant investment in Rural Development’s IT infrastructure. USDA is launching the transformation of over 130 loan and grant systems that support farmers, ranchers, and rural communities into one modern platform built for the 21st century. This upgrade will enable customers to submit applications, track cases, access records, and resolve issues online 24/7 without staff intervention. Modernized IT will reduce delays created by outdated systems and enhance consistency and speed across programs.

Aligning With Executive Orders

In accordance with USDA’s broader reorganization effort, this restructuring reflects multiple directives focused on government efficiency, workforce optimization, and improved federal service delivery, including initiatives on cost efficiency, hiring reform, and returning federal operations to in-person work.

Together, these changes strengthen Rural Development’s ability to deliver loans, grants, and technical assistance efficiently and effectively—enhancing customer experience, improving program access, and ensuring rural America has a strong and trusted partner in USDA.