On August 18, 2025, the US Department of Agriculture revealed an investment of $89 million aimed at supporting rural communities in Tennessee through enhanced utility services and infrastructure improvements. These funds primarily consist of loans.
Duck River Electric Membership Corporation, located in Shelbyville, stands out as a key player in this investment, receiving the bulk of the funds in the form of a $64.7 million loan. This financial boost will go towards building and upgrading a 239-mile line, benefiting nearly 83,000 customers across 17 counties. Previously, this cooperative worked with USDA’s Rural Economic Development Loans and Grants Program to facilitate projects intended to spur employment growth.
The USDA’s rural development initiative is designed to empower rural areas by improving various sectors, including infrastructure, utilities, health care, education, and housing.
An additional $24.3 million in loans and grants will focus on enhancing water supply areas, pump stations, streets, and wastewater treatment systems across Tennessee communities.
Specific projects include a $3.4 million loan for Sumner County Life Christian Academy to expand its daycare program for fifth graders. Meanwhile, Ivy Academy in Hamilton County will utilize a $5.1 million loan to establish a new high school career technology center aimed at preparing students for careers in mechanical, electrical, plumbing, and automotive sectors.
During her visit to Tennessee, Secretary of Agriculture Brook Rollins announced these funding initiatives over breakfast for future farmers in Lebanon. Interestingly, she also discussed plans to end solar panel subsidies, which has stirred up some debate. In line with this, there will be $31 million in federal funding cuts impacting agricultural research at the University of Tennessee Agricultural Research Institute.
Rollins remarked that adjustments made to grant programs have created challenges in aligning with the president’s vision of prioritizing farmers. One notable project affected was a $30 million initiative designed to broaden the market for climate-smart beef, dairy, and small grazing animals.
The USDA has earmarked funds for several other projects in rural Tennessee communities, including:
- A $2.3 million loan to the Cunningham Utility District in Montgomery County to enhance waterways for 70 households.
- A $2 million loan for Clay County Serena aimed at repaving city streets.
- A $2.75 million loan designated for a new 911 dispatch and call center for Marshall County Emergency Communications District.
- A $5.4 million loan for the replacement of a wastewater line and system upgrades in the Holesdale Powell Utility District in Knox County.
- A $729,000 grant alongside a $530,000 loan for the Cooper Basin Utility District in Polk County to construct a 4,000-foot water line and booster pump station.
- A $316,000 grant and $397,000 loan for the Webb Creek Utility District in Sevier County to replace old concrete wastewater lines with larger iron pipes.
- A $600,000 grant and $1 million loan for Selmer in McNailly County to repair the county’s pump stations.
- $30,000 each for specialized assessment initiatives supporting rural communities and households in Erin, Vanley, and Gallaway focused on wastewater remediation and water system upgrades.
