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Becky Bowers
By Becky Bowers December 19, 2012
Back to Create a rural revitalization program

Obama administration’s rural strategy has experts ‘hopeful’

Barack Obama promised in 2008 to help reverse rural decline.

With rural communities losing population and becoming older and poorer, his campaign's Blueprint for Change included a "rural revitalization program" to "attract and retain young people."

Four years later, experts find hope in the focus and structure of his administration's efforts.

A key example: the Rural Jobs Accelerator, a competitive grant program that cuts across federal agencies to award funding for regional projects.

"The only way you're going to get young people to stay in rural places is with a vibrant economy, a next-generation economy," said Deborah Markley, an economist who leads the RUPRI Center for Rural Entrepreneurship. "These kinds of efforts are the first step to getting kids to come home."

Her center's research shows meaningful numbers of young families would return to rural hometowns if there were jobs — particularly in growth industries.

So, for example, the administration has targeted the biosciences, the focus of a $1.8 million jobs grant in and around St. Louis.

Erik Johnston, the associate legislative director for the National Association of Counties, points to the creation last year of Obama's White House Rural Council as a "significant decision" to better coordinate rural policy efforts, including the Rural Jobs Accelerator program and an expansion of the National Health Service Corps.

Those are two "very specific initiatives that help attract and retain young people," he said.

It's not just grant funding that experts find promising, but the shift in how that money gets put to work, said Charles Fluharty, president and CEO of the Rural Policy Research Institute who testifies before Congress on rural issues.

The Obama administration has moved toward more efficient and effective "place-based policy," Fluharty said.

Rather than, say, a federal program within one agency to make credit available to small businesses generally, a place-based policy would draw on work of multiple agencies to foster regional "clusters" of businesses, according to a 2010 White House policy memo.

That's a significant shift that draws rural areas into larger regional planning, Fluharty said. It also coordinates dollars for bigger impact — necessary in a world where there will be less federal money to spend.

Early administration efforts aren't yet sustained or sufficient, Fluharty said, but the framework has been laid for serious policy shifts that leave him "hopeful."

Obama promised to "create a Rural Revitalization Program to attract and retain young people to rural America." While there's more yet to do, the creation of a White House Rural Council to coordinate programs such as the Rural Jobs Accelerator and an expansion of the National Health Service Corps makes this a Promise Kept.

Our Sources

Interview with Charles Fluharty, president and CEO, Rural Policy Research Institute, research professor, University of Missouri, Dec. 7, 2012

Interview with Deborah Markley, RUPRI Center for Rural Entrepreneurship, Dec. 17, 2012

Email interview with Erik Johnston, associate legislative director, National Association of Counties, Nov. 30. 2012

White House, "Developing Effective Place-Based Policies for the FY 2012 Budget," June 21, 2010

USDA, "FY 2011 Budget Summary And Annual Performance Plan," 2010

Council of Economic Advisers, "Strengthening the Rural Economy," April 27, 2010  |  Report

White House Rural Council, "Policy initiatives," accessed Nov. 28, 2012

White House Rural Council, "Executive Order - Establishment of the White House Rural Council," June 9, 2011

USDA, "The Rural Jobs and Innovation Accelerator Challenge," March 20, 2012

USDA, "Obama Administration Announces $9 Million Investment in Rural Communities to Foster Job Creation and Innovation," Aug. 1, 2012

USDA Rural Development, "Rural Jobs Accelerator," Nov. 29, 2012

Rural Policy Research Institute, "Rural Regional Innovation," accessed Dec. 11, 2012

PolitiFact Obameter, "Support regional innovation clusters," updated April 27, 2012

PolitiFact Obameter, "Expand broadband's reach," updated April 23, 2012