The Rural Development Modernization Act seeks to **harmonize and increase the population threshold** for communities considered rural under various federal programs. Specifically, it raises the population limit to **25,000 inhabitants** for numerous programs administered by the Department of Agriculture, including those for broadband, telemedicine, distance learning, telephone service loans, water and wastewater infrastructure, community facilities, and rural housing. This change aims to expand the eligibility for federal assistance to a broader range of communities. The bill also stipulates that **incarcerated populations and military base populations** are to be excluded when determining whether an area meets the rural population threshold for these programs. It eliminates previous lower population caps for certain water, waste, and community facilities programs, further streamlining the definition of rural areas. Additionally, the legislation extends the 25,000-inhabitant threshold to a Department of Energy program and modifies the definition of rural communities for the Reclamation Rural Water Supply Act of 2006. Furthermore, the Act clarifies and expands the applicability of several programs to **United States territories and freely associated states**, updating outdated terminology to ensure these regions can access federal support. To maintain relevance, the Secretary of Agriculture is mandated to **annually reassess and adjust** the numerical threshold for rural areas, taking into account current population trends, metropolitan classifications, and rural-urban commuting data, with consideration for regional differences.