Investing in Rural America Act of 2025
Investing in Rural America Act of 2025
Plain Language Summary
# Investing in Rural America Act of 2025 - Summary **What It Does** This bill would allow Farm Credit System (FCS) institutions—organizations that provide loans to farmers and rural businesses—to participate in the Department of Agriculture's Community Facilities program. Currently, only certain lenders can participate in this program, which funds essential facilities in rural areas like hospitals, fire stations, schools, water systems, and other community services. The bill expands who can lend money for these projects. **Key Rules and Who It Affects** The bill includes safeguards: FCS institutions could only dedicate up to 15% of their total loans to community facilities, and they would need to give other lenders a chance to participate in projects before committing their own money.
This primarily affects rural communities that need funding for essential services, as well as FCS institutions themselves, which would gain new lending opportunities. **Current Status** The bill was introduced by Rep. Michelle Fischbach (R-Minnesota) and is currently in committee, meaning it's in the early stages of the legislative process and hasn't yet been debated or voted on by the full House.
CRS Official Summary
Investing in Rural America Act of 2025This bill allows Farm Credit System (FCS) institutions to make and participate in loans and commitments (and extend other technical and financial assistance) for essential community facility projects as part of the Department of Agriculture's Community Facilities Direct Loan & Grant Program. This program provides funding to develop essential community facilities in rural areas.The FCS financing and technical assistance may be provided in order to make capital available to develop, build, maintain, improve, or provide related equipment or other support for essential community facilities in rural communities (e.g., certain facilities that provide healthcare, community support, public safety, educational, or utility services).Under the bill, the financing provided by an FCS institution may not exceed 15% of the total of all outstanding loans of the institution. Further, an FCS institution must (1) offer at least one non-FCS lending institution an interest in the financing under reasonable terms and conditions acceptable to the borrower, and (2) report the offer to the Farm Credit Administration (FCA).The FCA must submit an annual report to Congress on the activities undertaken by FCS institutions under this bill, including through the partnerships between FCS institutions and other lending institutions. The FCA must post the report on the administration's website.
Latest Action
Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.