---
kind: "section"
citation: "7 U.S.C. § 908"
title: "7"
title_heading: "Agriculture"
number: "908"
heading: "Limitations on use of assistance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/908"
units:
  - "Chapter 31 — Rural Electrification and Telephone Service"
  - "Subchapter I — Rural Electrification"
---

# §908. Limitations on use of assistance

- (a) Subject to subsections [(b)](#b) and [(c)](#c) of this section, the [Secretary](/usc/7/913.md?p=5) may allow a recipient of a grant, loan, or loan guarantee under this subchapter to set aside not more than 10 percent of the amount so received to provide retail broadband service.
- (b) A recipient who sets aside funds under [subsection (a)](#a) of this section may use the funds only in an area that is not being provided with the minimum acceptable level of broadband service established under [section 950bb(e) of this title](/usc/7/950bb.md?p=e), unless the recipient meets the requirements of [section 950bb(d) of this title](/usc/7/950bb.md?p=d).
- (c) Nothing in this section shall be construed to limit the ability of any borrower to finance or deploy services authorized under this chapter.
- (d) The [Secretary](/usc/7/913.md?p=5) shall not provide funding under [subsection (a)](#a) if the funding would result in competitive harm to any grant, loan, or loan guarantee referred to in [subsection (a)](#a).

## Source credit

(May 20, 1936, ch. 432, title I, § 8, as added Pub. L. 115–334, title VI, § 6210(b), Dec. 20, 2018, 132 Stat. 4744.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 908, acts May 20, 1936, ch. 432, title I, § 8, 49 Stat. 1366; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Oct. 13, 1994, Pub. L. 103–354, title II, § 235(a)(4), 108 Stat. 3221, related to transfer of functions of Rural Electrification Administration created by Executive Order No. 7037, prior to repeal by Pub. L. 104–127, title VII, § 776, Apr. 4, 1996, 110 Stat. 1150.