H.R. 1246: Investing in Rural America Act of 2025

This bill, known as the Investing in Rural America Act of 2025, proposes amendments to the Farm Credit Act of 1971 aimed at enhancing financial support for essential community facilities in rural areas. The main objectives and provisions of the bill are as follows:

Financial Support for Essential Facilities

The bill authorizes institutions within the Farm Credit System, such as Farm Credit Banks and cooperative banks, to provide financial assistance specifically for critical community facilities. These facilities include:

• Healthcare services
• Educational institutions
• Childcare services
• Public safety services
• Other vital services necessary for rural communities

The funding can be used for various aspects of facility projects, including:

• Development
• Construction
• Maintenance
• Improvements
• Equipment and other related support

Eligibility for Financing

Only entities that qualify under Section 306(a) of the Consolidated Farm and Rural Development Act are eligible to receive financing or assistance. This ensures that funds are directed to appropriate projects and organizations.

Financing Limitations

The bill sets specific limitations on the total amount of financing or assistance that can be provided. Institutions in the Farm Credit System cannot offer more than 15 percent of their total outstanding loans for these purposes. Additionally, before extending financing, these institutions must:

• Offer financing to at least one domestic lending institution outside the Farm Credit System, under conditions that are reasonable for the borrower.
• Report this offer to the Farm Credit Administration.

When making these offers, a priority must be given to community banks in the service area of the facility that will be financed.

Reporting Requirements

The Farm Credit Administration is tasked with providing an annual report to Congress detailing the activities of Farm Credit System institutions related to this financing. The report will cover partnerships between these institutions and other lenders and will be made publicly available on the Farm Credit Administration's website.

Effective Date

The provisions outlined in the bill are set to take effect on October 1, 2025.

Relevant Companies

None found.