Alisa Harrison (202) 720-4623
Tim McNeilly (202) 690-0498

USDA ANNOUNCES TWO NEW EMPOWERMENT ZONE COMMUNITIES

Educational and Economic Improvements Top List of Goals Set By Northern Maine and South Texas Communities

     WASHINGTON, January 11, 2002--Agriculture Secretary Ann M. Veneman today announced the selection of Northern Maine Development Commission, Inc. (Aroostook County) in Maine and Middle Rio Grande FUTURO Communities in Texas to receive the designation as the latest rural Empowerment Zones (EZs). The selection of these two communities brings to 10 the total number of rural Empowerment Zones designated since Congress initiated the program in the early 1990s.

     “Investments made in Empowerment Zones serve as a beacon of hope for the residents who are working hard to create a brighter future for their families and their community,” said Veneman. “The investments will help build a solid foundation upon which social and economic prosperity will flourish.”

     In Aroostook County, Maine, the largest county in the state, the sparsely populated area has relied heavily on timber and agriculture as its main economic base. Since 1960, the area has recorded a 14.5 percent out-migration of residents, due largely to the closure of Loring Air Force Base and changes in the county’s potato industry. The out-migration, along with high unemployment has contributed to the current economic problems facing this northern region of Maine.

     The Middle Rio Grande FUTURO (Families United to Utilize Regional Opportunities) Communities is a five-county region in a remote area of rural Texas along the Mexican border. Four of the five counties are among the 20 poorest counties in the U.S. Portions of Maverick, Zavala, Uvalde, Dimmit and LaSalle Counties suffer from a 20% unemployment rate along with a 46.5 percent poverty rate.

     Communities designated as an Empowerment Zone receive a variety of federal tax benefits along with technical assistance provided through USDA Rural Development. An initial $100,000 grant is provided to each designated community for start-up costs.

     The selection process is a very competitive process. In order to be eligible for the empowerment program, communities must have high levels of poverty or significant population loss. Eligible communities must also prepare a long-term, community driven strategic plan for community development.

     "The program allows communities, not the federal government, to decide what methods and resources will be used to create and sustain long-term private investment and job creation," Veneman said.

     Since the inception of the EZ program, and its companion Enterprise Community program, USDA Rural Development has invested over $560 million in grants and loans in the 59 communities to stimulate housing and business sector growth, as well as assisted with the development of utility infrastructure and community facilities. To date, designated communities have garnered over $3 billion in Federal, tribal, state, and local government, private sector and non-profit financial support.

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