Rural Electrification Act Law and Legal Definition

The Rural Electrification Act of 1936 is an act that allowed the federal government to make low-cost loans to non-profit cooperatives for the purpose of bringing electricity to much of rural America for the first time.

The act provided federal loans for the installation of electrical distribution systems to serve rural areas of the U.S.

The purpose of the act was to provide loans in the several states and territories of the U.S. for rural electrification and the furnishing of electric energy to persons in rural areas who were not receiving central station service; to make or cause to be made, studies, investigations, and reports concerning the condition and progress of electrification of rural areas in the several states and territories; and to publish and disseminate information with respect thereto.