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LouisianaHB 12002026 Regular SessionHouseWALLET

CAPITAL OUTLAY: Provides for the Louisiana Rural Infrastructure Revolving Loan Program (EN SEE FISC NOTE SD EX See Note)

Sponsored By: Rhonda Gaye Butler (Republican)

Signed by Governor

Revenue and Fiscal AffairsWays and Means

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Emergency infrastructure loans for small communities

Beginning July 1, 2026, projects addressing dangers to life, health, or property can qualify as emergency loan requests. A certifying department must recommend, permit, or approve them. The definition also covers certain projects with an expected useful life under 20 years. Those projects must cost less than $150,000 in subdivisions with 15,000 people or fewer. In subdivisions with over 15,000 and no more than 50,000 people, costs must stay below the contract limit in R.S. 38:2212(C)(1).

Infrastructure loans for small Louisiana communities

Beginning July 1, 2026, Louisiana's rural loan program finances public infrastructure planning, building, repairs, maintenance, and improvements. Projects must be in local subdivisions with fewer than 50,000 people, based on the latest federal decennial census. Eligible projects include drinking water, wastewater, drainage, energy, hazard protection, and facilities supporting jobs, public safety, or quality of life. The responsible certifying department must recommend, permit, or approve each project.

More financing options for rural infrastructure

Beginning July 1, 2026, the rural infrastructure loan program no longer has a $1.5 million maximum loan amount. The law sets no replacement maximum. When funds can meet all qualified demand, the program must prefer qualified borrowers without outstanding program loans. The Political Subdivision Federal Grant Assistance Fund can help administer loans or provide their principal through either infrastructure loan program. These are the State Infrastructure Bank and the rural program; the fund also continues supporting competitive federal infrastructure grants.

Private infrastructure borrowers gain financing options

Beginning July 1, 2026, private entities participating in eligible infrastructure projects can qualify for program loans. Relevant agencies must approve or consent to their participation, and applicable law must allow the financing. The Office of Rural Development must find that repayment is adequately secured. The State Bond Commission can also guarantee qualified borrowers' project debt or performance obligations, including those of eligible private borrowers. Guarantees are limited to specified fund-related resources, not the State's full faith and credit.

Local infrastructure loans tie up revenues

Beginning July 1, 2026, local governments taking program loans can pledge available revenues to secure repayment. Sources include general revenues, sales taxes, property taxes, sewer user fees, assessments, and parcel fees. The pledge can cover principal, interest, premiums, administrative fees, and other loan costs for the full repayment period. This helps secure infrastructure financing but commits public money that might otherwise support other services. The law does not set a household tax or fee increase.

Sponsors & Cosponsors

Sponsor

  • Rhonda Gaye Butler

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 229 • No: 9

House vote • 5/13/2026

Read by title, roll called, yeas 93, nays 2, Senate amendments concurred in.

Yes: 93 • No: 2

Senate vote • 5/11/2026

Senate floor amendments read and adopted. Read by title, passed by a vote of 36 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

Yes: 36 • No: 0

House vote • 4/13/2026

Read third time by title, amended, roll called on final passage, yeas 86, nays 7. Finally passed, title adopted, ordered to the Senate.

Yes: 86 • No: 7

House vote • 4/7/2026

Reported favorably

Yes: 14 • No: 0

Actions Timeline

  1. Signed by the Governor. Becomes Act No. 340.

    5/22/2026House

  2. Effective date: 07/01/2026.

    5/22/2026House

  3. Sent to the Governor for executive approval.

    5/19/2026House

  4. Enrolled and signed by the Speaker of the House.

    5/18/2026House

  5. Signed by the President of the Senate.

    5/18/2026Senate

  6. Read by title, roll called, yeas 93, nays 2, Senate amendments concurred in.

    5/13/2026House

  7. Received from the Senate with amendments.

    5/12/2026House

  8. Scheduled for concurrence on 05/13/2026.

    5/12/2026House

  9. Senate floor amendments read and adopted. Read by title, passed by a vote of 36 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

    5/11/2026Senate

  10. Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.

    4/29/2026Senate

  11. Committee amendments read and adopted. Read by title and referred to the Legislative Bureau.

    4/28/2026Senate

  12. Reported with amendments.

    4/27/2026Senate

  13. Read second time by title and referred to the Committee on Revenue and Fiscal Affairs.

    4/15/2026Senate

  14. Received in the Senate. Read first time by title and placed on the Calendar for a second reading.

    4/14/2026Senate

  15. Read third time by title, amended, roll called on final passage, yeas 86, nays 7. Finally passed, title adopted, ordered to the Senate.

    4/13/2026House

  16. Scheduled for floor debate on 04/13/2026.

    4/9/2026House

  17. Read by title, ordered engrossed, passed to 3rd reading.

    4/8/2026House

  18. Reported favorably (14-0).

    4/7/2026House

  19. Read by title, under the rules, referred to the Committee on Ways and Means.

    4/1/2026House

  20. Read by title. Lies over under the rules.

    3/31/2026House

Bill Text

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