The Case for a New Homestead Act
History has already provided us a model for how to help communities in the Heartland that are hurting – and that’s the Homestead Act of 1862. Under this Act, to help populate and grow the nation’s Heartland, our government struck a one-time bargain with people who took a chance and moved there. In exchange for a 5-year commitment to stay and work the land, it offered them free public lands and the promise of opportunity.
This pact was a success. And just as important, this Homestead ethic helped foster a sense of community that shaped our nation over the course of the next century and which still exists today.
If we are going to reverse the effects of out-migration, and help bring prosperity back to the Heartland, we need to rekindle this spirit. We need to launch a new and equally bold initiative that challenges a new generation of Americans. And we need to do this not just for the sake of the Heartland, but for the entire nation.
America needs a new Homestead Act as much as the Heartland does. Not just because the country would benefit from a renewal of the Act’s spirit, but because the entire nation would gain from the survival of the region’s strong communities.
By any objective measure, rural towns and counties suffering from out-migration are among the best places to live in the nation. They have great schools, friendly communities, and low crime rates. But government spends more time and money trying to recreate these conditions where they don't occur, than it does trying to maintain them where they already exist – such as in small rural towns.
Senator Dorgan believe a new Homestead Act can change that. Here is an outline of his proposal:
(1) New homestead opportunities to help individuals who make a commitment to live and work in rural areas suffering from high out-migration to get a college degree, buy a home, start a business, and build a nest egg for the future;
(2) New business tax credits to help states encourage and reward businesses to locate and expand in high out-migration areas; and
(3) A New Homestead Venture Capital Fund to promote business development and growth in high out-migration areas by making sure they have access to capital.
