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119-hr-6779119th CongressWALLET

USDA Loan Modernization Act

Sponsored By: Representative Bost, Mike [R-IL-12]

In Committee

Summary

Broadens who can qualify for USDA direct farm loans and standardizes ownership tests across loan programs. It aligns real estate, operating, and emergency loan rules around a 50% operator threshold and a 75% test for embedded entities, and lets the Secretary define "qualified operators".

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  • Farmers and operators: Individuals and entity members who hold at least 50% ownership and who are or will become bona fide operators can meet operator or owner-operator requirements for direct real estate, operating, and emergency loans.
  • Embedded entities and multi-entity ownership: An embedded entity will meet direct ownership tests if at least 75% of its ownership interests are held, directly or indirectly, by qualified operators of the farm supported with loan funds.
  • USDA administration and applicants: The Secretary is empowered to define who counts as a "qualified operator" and may determine appropriate ownership percentages in particular cases for operator-only or embedded-entity applicants.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

More USDA farm loan access

If enacted, farmers and farm businesses would be able to qualify for more USDA direct loans for land, operations, and disaster recovery. The bill would replace "a majority" tests with an "at least 50 percent" ownership rule for operator and owner-operator tests. It would let embedded entities qualify if at least 75 percent of total ownership is held, directly or indirectly, by qualified operators. The Secretary of Agriculture would be able to define who counts as a "qualified operator" and set certain alternate ownership percentages.

Sponsors & CoSponsors

Sponsor

Bost, Mike [R-IL-12]

IL • R

Cosponsors

  • Rep. Budzinski, Nikki [D-IL-13]

    IL • D

    Sponsored 12/17/2025

  • Rep. Rose, John W. [R-TN-6]

    TN • R

    Sponsored 12/17/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 1/7/2026

Roll Call Votes

No roll call votes available for this bill.

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