REA (Rural Electrification Act)

The Rural Electrification Act (REA), enacted in 1936, aimed to bring electricity to rural and farming communities that lacked reliable power. Prior to the REA, many rural areas were underserved because utility companies found it unprofitable to extend grid infrastructure. The Act provided federal loans and assistance to create cooperatives—groups of local residents—to build and operate their own electrical systems. This helped improve living standards, boost local economies, and modernize rural America by making electricity affordable and accessible where it was previously unavailable.