The US Government is providing $202 million (£164m) for projects that deliver electricity to rural residents, business and institutions in nine states.
Around $14.7 million (£12m) will be used for smart grid technologies, including metering, substation automation and computer applications.
That would be installed in all nine states – Kansas, Kentucky, Missouri, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee and Texas.
The funding will also support the construction of transmission lines and system upgrades.
Roger Glendenning, Rural Development Acting Deputy Under Secretary said: “USDA continues to be a partner with co-operatives and utilities to expand and modernise the rural electric grid. These loans represent the latest efforts to create jobs, help grow the rural economy and support new technology.”
The USDA previously provided funding to help 821 rural businesses and farms in the US reduce energy usage.