# 119-s-1260: Rural Housing Service Reform Act of 2025

119-s-1260, Rural Housing Service Reform Act of 2025, is a 119th Congress bill sponsored by Sen. Smith, Tina [D-MN] (D-MN); status introduced; PRIA reads it as touching household money (as of 2026-09-27).

- Canonical: https://policyrisk.com/legislation/119-s-1260
- As of: 2026-09-27
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1260
- Congress: 119
- Title: Rural Housing Service Reform Act of 2025
- Status: introduced
- Introduced: 2025-04-02
- Sponsor: Sen. Smith, Tina [D-MN] (D-MN)
- Cosponsors: 14
- Policy area: Housing and Community Development
- Touches household money: yes
- Last recorded action: 2026-09-27

## Summary

**Preserve and revitalize affordable rural multifamily housing.** This bill would expand foreclosure protections for Rural Housing Service (RHS) mortgages, create a permanent Housing Preservation and Revitalization program, and authorize new funding and technical help to keep rural rental properties safe and affordable. - Families and tenants: Tenants would keep rental assistance contracts during foreclosure and gain stronger resident protections and occupancy rights. Rural housing vouchers would get a new review process and could be renewed or adjusted to reflect income, family changes, or rent. - Owners, nonprofits, and purchasers: The bill would let owners restructure loans with tools like interest reductions, deferrals, and reamortization, and it would fund transfer and preservation grants to help nonprofits or public bodies buy and rehab properties. It also authorizes $200 million per year for the preservation and revitalization program for FY2026–FY2030. - Native communities and community lenders: It would create a Native Community Development Financial Institution relending program with a $50 million annual set-aside and a 20 percent non-Federal cost share requirement, plus reporting and outreach rules. *This bill would authorize new federal spending, including $200 million per year for FY2026–FY2030 and a $50 million annual set-aside, which would increase federal outlays.*

## Cosponsors (14)

- Sen. Rounds, Mike [R-SD] (R-SD), 2025-04-02T00:00:00.000Z
- Sen. Daines, Steve [R-MT] (R-MT), 2025-04-02T00:00:00.000Z
- Sen. Fetterman, John [D-PA] (D-PA), 2025-04-02T00:00:00.000Z
- Sen. Crapo, Mike [R-ID] (R-ID), 2025-04-02T00:00:00.000Z
- Sen. Warner, Mark R. [D-VA] (D-VA), 2025-04-02T00:00:00.000Z
- Sen. Cramer, Kevin [R-ND] (R-ND), 2025-04-02T00:00:00.000Z
- Sen. Warnock, Raphael G. [D-GA] (D-GA), 2025-04-02T00:00:00.000Z
- Sen. Shaheen, Jeanne [D-NH] (D-NH), 2025-04-02T00:00:00.000Z
- Sen. Moran, Jerry [R-KS] (R-KS), 2025-04-02T00:00:00.000Z
- Sen. Cortez Masto, Catherine [D-NV] (D-NV), 2025-04-30T00:00:00.000Z
- Sen. Ricketts, Pete [R-NE] (R-NE), 2025-04-30T00:00:00.000Z
- Sen. Risch, James E. [R-ID] (R-ID), 2026-03-04T00:00:00.000Z
- Sen. King, Angus S., Jr. [I-ME] (I-ME), 2026-03-03T00:00:00.000Z
- Sen. Heinrich, Martin [D-NM] (D-NM), 2026-03-04T00:00:00.000Z

## Provisions PRIA read

- Bigger small repair loans for rural owners: benefit, high. This bill would raise the maximum Section 504 small repair loan from $7,500 to $15,000. It would also require that at least 60 percent of loan funds go to very low-income applicants. The change would help low-income rural borrowers pay for needed home repairs.
- More flexible rural mortgage rules: benefit, medium. This bill would let the agency refinance or modify Section 502 loans so the total term after change does not exceed 40 years. It would define accessory dwelling units and let rental income from an ADU count to qualify for a guaranteed loan if the property was built before enactment. The bill would…
- Native lender loan set-aside: benefit, medium. This bill would let the Secretary set aside up to $50 million each year for direct loans to Native community development financial institutions. Those Native lenders would make loans to tribal, Alaska Native, or Native Hawaiian borrowers who meet Section 502 rules, with priority for borrowers on pr…
- Grants and IT upgrades for rural housing: benefit, medium. This bill would create rural community development intermediary grants of up to $250,000 each to support local housing and community projects. Intermediaries would normally must match the grant dollar-for-dollar, but the Secretary could waive the match for persistently poor rural areas. It would al…
- Protect and preserve rural apartments: mixed, high. This bill would create a Housing Preservation and Revitalization program with about $200 million each year for FY2026–FY2030. It would let the agency restructure loans, pay for rehab, and renew rental assistance contracts for up to 20 years. Projects getting help would accept long-term use rules an…

## Related bills

- 119-s-5066: Health Equity and Accountability Act of 2026
- 119-s-1032: Major Richard Star Act
- 119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former United States Senator for the State of Kansas.
- 119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewellyn Kyl, former Senator for the State of Arizona.
- 119-sres-801: A resolution honoring the life and legacy of the Honorable Lindsey Olin Graham, a Senator from the State of South Carolina.
- 119-sres-755: A resolution honoring the life of the Honorable Donald W. Riegle, Jr., former Senator for the State of Michigan.

## Sources
- [119-s-1260 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1260)

## Related
- [119-s-5066: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-s-5066)
- [119-s-1032: Major Richard Star Act](https://policyrisk.com/legislation/119-s-1032)
- [119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former Uni…](https://policyrisk.com/legislation/119-sres-913)
- [119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewel…](https://policyrisk.com/legislation/119-sres-897)
- [119-sres-801: A resolution honoring the life and legacy of the Honorable Lindsey Olin Graham,…](https://policyrisk.com/legislation/119-sres-801)
- [119-sres-755: A resolution honoring the life of the Honorable Donald W. Riegle, Jr., former S…](https://policyrisk.com/legislation/119-sres-755)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1260 (as of 2026-09-27).