The latest investment is part of the the $50bn that the department has already invested for infrastructure improvements since 2009
Agriculture Secretary Tom Vilsack said: "We must invest in America’s infrastructure to promote sustainable economic development in our rural and urban communities."
"Enhancements to the nation’s electric grid make a huge difference for communities across the country and support President Obama’s efforts to build a stronger rural economy."
Of the $518m investment, more than $23m will be directed for smart grid technology.
Smart grid technologies such as automated meter reading and load management automation enable better control over the use of electricity in US.
This project helps construct and improve more than 5,600 miles of line in rural areas.
The investments will be channeled through USDA’s Rural Utilities Service (RUS), which also looks into infrastructure programs that aim to bring broadband, safe drinking water and improved wastewater treatment facilities to rural communities.
