USDA to Ditch Its Own 'Unnecessary' Rural Construction Rules
Published Date: 8/19/2026
Proposed Rule
Summary
The Rural Business-Cooperative Service (RBCS), Rural Housing Service (RHS), and Rural Utilities Service (RUS), together make up the Rural Development (RD or the Agency) mission area within the U.S. Department of Agriculture (USDA). RD is issuing this proposed rule to rescind its regulation regarding construction and repairs. RD found this regulation to be unnecessary and unduly burdensome. In addition, it makes changes to RBCS regulations by removing references to the construction and repair regulations. The plain language summary of the proposal is available on Regulations.gov in the docket for rulemaking.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Rescinding Federal Construction Rules for Rural Housing
If you use USDA Rural Development housing loans, this proposed rule (published August 19, 2026) would remove 7 CFR part 1924, the Federal construction and repair standards for RHS housing programs. RD says removing Part 1924 will reduce duplicative Federal requirements that increase construction costs and delays—costs that are passed to borrowers and that RD says reduce the number of loans RHS can make and restrict affordability. Comments on the proposal are due by October 19, 2026.
Federal Standards Continue for Rural Business Projects
If you run or plan a Rural Business–Cooperative Service (RBCS) project, the proposed rule revises RBCS regulations to remove obsolete references to Part 1924 and point to 7 CFR part 1942, subpart C. The agency states RBCS projects lack robust State and local standards and therefore will continue to be subject to Federal construction and development requirements.
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Key Dates
Department and Agencies
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