Before REA could begin to meet the demand for rural electrical lines, Morris Cooke and his fellow public power supporter, Senator George Norris recognized that REA had to become a permanent agency with annual appropriations. Senator Norris and Congressman Sam Rayburn introduced bills that made REA an independent agency and specified non-profit organizations like cooperatives or municipals as the preferred borrowers for REA funds.
Many in the House and Senate supported the REA legislation, particularly southern Democrats who represented large numbers of rural families living without electricity. However, the REA bills drew opposition from several factions in the House and Senate. Some objected to spending public money on a program just for rural people. Others expressed reservations about the growing public debt from New Deal programs. Some felt that federal initiatives like REA wrested too much power from states. Many objected to REA because they believed it operated at an unfair advantage over private industry and represented too much government control and influence. The public utilities companies and organizations lobbied heavily against the bills. While the Senate bill passed with little debate, the House bill faced significant opposition.
