Release No. 0094.00
                                                               
NEW USDA PROGRAM TO HELP RURAL SCHOOLS
                                    Steve Thompson (202) 720-2446
                                 sathomps@rdmail.rural.usda.gov



NEW USDA PROGRAM TO HELP RURAL SCHOOLS

  WASHINGTON, Wednesday, March 22, 2000 Deputy Agriculture Secretary
Richard Rominger today announced a new USDA partnership to help rural school
districts finance education and facility improvements.  

  The Rural Community Schools Rebuilding Program will provide rural
schools with access to as much as $1.2 billion in financing to repair school
buildings, acquire new equipment, develop course materials, and train teachers
and other school personnel.  Participating lenders can offer interest-free
loans in return for  federal tax credits. USDA will guarantee up to 90 percent
of the amount a school borrows from a private lender. 

  "Many rural communities face steep challenges in keeping their school
facilities and programs competitive," said Rominger.  "The funding provided by
this new partnership will help rural schools improve educational opportunities
for this new century."  

The Schools Rebuilding Program will host workshops in rural communities
to train community leaders in developing plans to obtain the financing.  In
its first year, the program will be implemented on a pilot basis in
Mississippi, North Carolina, North Dakota, and Texas.

The program is a joint effort between USDA's Rural Housing Service and
Organizations Concerned about Rural Education, a coalition of  businesses and
not-for-profit organizations.  It includes the American Association of School
Administrators, the American Association of State Colleges and Universities,
Bell Atlantic, U.S. West Communications, the National Education Association,
and the National Farmers Union.  

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