---
kind: "section"
citation: "7 U.S.C. § 936f"
title: "7"
title_heading: "Agriculture"
number: "936f"
heading: "Substantially underserved trust areas"
release: "119-102"
url: "https://uscodex.org/usc/7/936f"
units:
  - "Chapter 31 — Rural Electrification and Telephone Service"
  - "Subchapter III — Rural Electric and Telephone Direct Loan Programs"
---

# §936f. Substantially underserved trust areas

- (a) **Definitions—** In this section:
  - (1) **Eligible program—** The term “eligible program” means a program administered by the [Rural](/usc/7/1991.md?p=a-13-B) Utilities Service and authorized in—
    - (A) this chapter; or
    - (B) paragraph (1), (2), (14), (22), or (24) of [section 1926(a) of this title](/usc/7/1926.md?p=a) or section [1926a](/usc/7/1926a.md), [1926c](/usc/7/1926c.md), [1926d](/usc/7/1926d.md), or [1926e](/usc/7/1926e.md) of this title.
  - (2) **Substantially underserved trust area—** The term “substantially underserved trust area” means a community in “trust land” (as defined in [section 3765 of title 38](/usc/38/3765.md)) with respect to which the [Secretary](/usc/7/913.md?p=5) determines has a high need for the benefits of an [eligible program](#a-1).
- (b) **Initiative—** The [Secretary](/usc/7/913.md?p=5), in consultation with local governments and Federal agencies, may implement an initiative to identify and improve the availability of [eligible programs](#a-1) in communities in [substantially underserved trust areas](#a-2).
- (c) **Authority of Secretary—** In carrying out [subsection (b)](#b), the [Secretary](/usc/7/913.md?p=5)—
  - (1) may make available from loan or loan guarantee programs administered by the [Rural](/usc/7/1991.md?p=a-13-B) Utilities Service to qualified utilities or applicants financing with an interest rate as low as 2 percent, and with extended repayment terms;
  - (2) may waive nonduplication restrictions, matching [fund](/usc/7/4531.md?p=5) requirements, or credit support requirements from any loan or grant program administered by the [Rural](/usc/7/1991.md?p=a-13-B) Utilities Service to facilitate the construction, acquisition, or improvement of infrastructure;
  - (3) may give the highest funding priority to designated projects in [substantially underserved trust areas](#a-2); and
  - (4) shall only make loans or loan guarantees that are found to be financially feasible and that provide [eligible program](#a-1) benefits to [substantially underserved trust areas](#a-2).
- (d) **Report—** Not later than 1 year after the date of enactment of this section and annually thereafter, the [Secretary](/usc/7/913.md?p=5) shall submit to Congress a report that describes—
  - (1) the progress of the initiative implemented under [subsection (b)](#b); and
  - (2) recommendations for any regulatory or legislative changes that would be appropriate to improve services to [substantially underserved trust areas](#a-2).

## Source credit

(May 20, 1936, ch. 432, title III, § 306F, as added Pub. L. 110–234, title VI, § 6105, May 22, 2008, 122 Stat. 1196, and Pub. L. 110–246, § 4(a), title VI, § 6105, June 18, 2008, 122 Stat. 1664, 1957.)

## Notes

### Editorial Notes

### References in Text

The date of enactment of this section, referred to in subsec. (d), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008.

### Codification

Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

### Statutory Notes and Related Subsidiaries

### Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.