Data Show Rural Money's Urban Drift

Friday, April 6, 2007

A Washington Post analysis found that the U.S. Department of Agriculture's Rural Development program sends billions each year to areas that bear little resemblance to the isolated, rural regions where the program started in the 1930s. Over the past five years, for example, the program has funneled more in grants and guaranteed loans to major metropolitan areas of more than 1 million people ($10.9 billion) than it has to distressed rural counties ($8.6 billion).

The analysis was based on more than 150,000 actions reported to the government-wide Federal Assistance Award Data System by Rural Development from 2001 to 2005. The system contained actions totaling $64 billion, about 90 percent of all of the grants, loans and loan guarantees awarded by the three agencies that make up the program.

The Post's review found that an additional $8.8 billion was funneled to counties classified by the USDA as retirement or resort destinations. For the $42 billion that could be analyzed in more detail, The Post found that about 75 percent was sent to Zip codes within a 45-mile drive of an urban area, as defined by the University of Washington's Rural Health Research Center.

-- Sarah Cohen


© 2007 The Washington Post Company