In the depths of the Great Depression, President Franklin Roosevelt signed Executive Order 7037 on May 11, 1935 establishing the Rural Electrification Administration (REA), a temporary agency tasked with deciding how to fund rural electric systems. The following year, Congress passed the Rural Electrification Act of 1936, giving statutory power to the new agency.
It didn’t take them long to get to work. In 1937, the REA noted the most spectacular increase of rural electrification in the history of the United States had been achieved. Thanks to this national commitment, more than 1.2 million farms had electric service and the gap between urban and rural standards of living was closing.