Prioritizing Rural Hospitals Act
Sponsored By: Representative Underwood, Lauren [D-IL-14]
Introduced
Summary
Prioritizes funding for rural health and behavioral health facilities by directing USDA Community Facilities direct loans and grants toward those projects for fiscal years 2026–2031. It would also limit how award money can be spent and prevent national reprioritizations so resources stay focused on local health infrastructure.
Show full summary
- Rural families and patients could see improved access through renovated hospitals and expanded telehealth capacity in areas with few providers.
- Eligible rural hospitals and clinics, including certified community behavioral health clinics, would get selection priority for direct loans and grants to support medical supplies, telehealth systems, or reopening closed facilities.
- Recipients may use funds for staffing but no more than 25 percent of a loan or grant may go to staffing, and USDA would be barred from making national-level reprioritizations in the Community Facilities program during 2026–2031.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Rural health projects get priority and stability
For fiscal years 2026 through 2031, USDA would have to prioritize Community Facilities applications that build or expand health care or mental and behavioral health facilities, including certified community behavioral health clinics. In those years, USDA would also be barred from making national reprioritizations in the program. This could make rural health projects more likely to get loans or grants and keep the priority rules stable.
Rural clinic funding with staffing cap
If enacted, from fiscal years 2026 through 2031, eligible rural health and behavioral health projects that get USDA Community Facilities loans or grants could use funds for medical supplies, telehealth systems, staffing, and renovating closed facilities. They could use no more than 25% of any award for staffing. This would apply only to entities approved for those loans or grants.
Sponsors & CoSponsors
Sponsor
Underwood, Lauren [D-IL-14]
IL • D
Cosponsors
Rep. Mann, Tracey [R-KS-1]
KS • R
Sponsored 7/2/2025
Bishop
GA • D
Sponsored 4/22/2026
Roll Call Votes
No roll call votes available for this bill.
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