What was the REA?

The Rural Electrification Act (REA) is a law that was passed by the U.S. Congress in May 1936. The law permitted the federal government to make low-cost loans to farmers for the purpose of forming rural electrical cooperatives.

What did the REA accomplish?

The REA was created to bring electricity to farms. In 1936, nearly 90 percent of farms lacked electric power because the costs to get electricity to rural areas were prohibitive. Today’s projects strengthen rural electric systems and fund renewable energy and smart grid technologies.

Who did the Rural Electrification Administration benefit?

Advantages of the Rural Electrification Act Gains in productivity meant that farmers made more money and were able to pay back the REA loans. The default rate on these loans was less than 1\%. 4 In other words, the government managed to provide electricity to its rural population essentially for free.

Was the REA for recovery or reform?

Summary and definition: The Relief, Recovery and Reform programs, known as the ‘Three R’s’, were introduced by President Franklin D. Roosevelt during the Great Depression to address the problems of mass unemployment and the economic crisis.

What did the Ehfa do?

The EHFA was a federally-owned corporation, established under the laws of Delaware (and later, Washington, D.C.), and was created to increase sales of large electrical appliances, such as refrigerators, stoves, and hot water heaters, to Americans of low and moderate income.

When was the REA started?

May 11, 1935
The idea of providing federal assistance to accomplish rural electrification gained ground rapidly when President Roosevelt took office in 1933. On May 11, 1935, Roosevelt signed Executive Order No. 7037 establishing the Rural Electrification Administration (REA).

Did the REA create jobs?

After establishing the Agricultural Adjustment Administration (AAA) to bring relief to farmers and the Tennessee Valley Authority (TVA) to develop power projects in the Southeast, the Roosevelt administration in 1935 established the Rural Electrification Administration (REA) to create badly needed jobs and to build …

What was Rea during the Great Depression?

The REA, which was created by the Rural Electrification Act on May 20, 1936, was designed to spark electricity in rural areas. The federal government provided low-cost loans to groups of farmers who created cooperatives that installed and oversaw power lines.

Was the SSA a relief recovery reform?

The Social Security Act was for relief. It was the cornerstone law of Franklin Roosevelt’s “Second New Deal.” The Social Security Act…

How did FDR provide relief?

The Civilian Conservation Corps (CCC), which employed young, single men at federally funded jobs on government lands. The Federal Emergency Relief Act (FERA), which gave federal grants to states that funded salaries for government workers as well as local soup kitchens and other direct-aid to the poor programs.

How did the Ehfa help the Great Depression?

On Dec. 19, 1933, Roosevelt issued an Executive Order creating the Electric Home and Farm Authority under TVA. EHFA negotiated lower prices from manufacturers and lower rates from utilities outside of TVA, as the program expanded.