USDA Loan Modernization Act
Sponsored By: Representative Bost
Introduced
Summary
Makes it easier for bona fide farm operators and varied ownership structures to qualify for USDA direct loans. It replaces a vague "majority" ownership test with an "at least 50 percent" threshold and adds special rules for operating-only and embedded entities in real estate, operating, and emergency loan programs.
Show full summary
- Farm operators: Expands who counts as the operator for direct real estate, operating, and emergency loans by using a 50 percent operator-ownership test and allowing the Secretary to recognize "qualified operators."
- Operating-only and embedded entities: An entity that only operates land can qualify if one or more landowners own at least 50 percent of the operator. An embedded entity can meet direct ownership rules if at least 75 percent of its ownership interests are held, directly or indirectly, by qualified operators.
- USDA administration: Gives the Secretary discretion to define "qualified operators" and adjust thresholds by context, which creates more case-by-case determinations and administrative complexity.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
More USDA loans for farm operators
If enacted, this bill would expand who can get USDA direct farm real estate, operating, and emergency loans. It would replace the old "a majority" test with "at least 50 percent" for operator-ownership. It would let the Secretary define "qualified operators," allow operator-only applicants to qualify when real-estate owners own at least 50 percent, and let embedded entities qualify when 75 percent of ownership is held by qualified operators. If enacted, these changes would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Bost
IL • R
Cosponsors
Budzinski
IL • D
Sponsored 12/17/2025
Rose
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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