US$16.9 billion will be invested to build 1,600 new homes in urban areas, as part of a $20 billion investment package announced Wednesday.
The rural development project will build nearly 1,000 new homes to be built in the coming years.
“These new housing units are going to be affordable for the poor and the working poor in rural America,” US Secretary of Agriculture Tom Vilsack said in announcing the new funding.
“This will help to help lift millions of people out of poverty and help them get back on their feet.”
The funding will also help fund projects that provide housing to low-income families, veterans, and people with disabilities.
The US Department of Agriculture and US Department for Urban Development will both be providing $500 million in grants and support through a rural development assistance program called the Rural Infrastructure Investment Fund.
This program is designed to support rural economic development in states, territories, and local governments.
The funding for the new housing will be the first of its kind in the United States.
“The US Department is proud to be partnering with the USDA and USDA’s Office of Rural Development to build new homes for the rural poor,” said David G. Wertz, director of the USDA Rural Development Office.
“We look forward to seeing the impact these new homes will have on the rural economy.”
Read more about rural development in our story from Fortune: US$20B to Build 2,00 Homes in Rural Areas [ Fortune | Image via US Department Of Agriculture and USDA Office Of Rural Development]