A bipartisan bill designed to modernize U.S. Department of Agriculture (USDA) and Rural Housing Service loan programs and increase the supply of affordable housing in rural communities has been introduced in the U.S. House of Representatives.
Co-sponsored by Rep. Emanuel Cleaver, D-Mo., and Rep. Zach Nunn, R-Iowa, the Rural Housing Service Reform Act is a companion to a Senate bill with the same name that recently advanced unanimously through a committee markup session as part of the broader ROAD to Housing Act of 2025.
If enacted, the legislation would create a permanent program preserving USDA-financed affordable rental housing by enabling nonprofit organizations to obtain properties and continue rental assistance after loans mature.
It would also expand grant programs for rural home repairs and improvements — including the construction of accessory dwelling units — and support childcare services by allowing loan guarantees for properties with in-home daycare facilities. Additionally, the bill would earmark funding to modernize USDA technology and expand staffing to expedite the loan application process.
“Tragically, as communities struggle to build more housing and rural housing programs are unable to keep up with demand, residents in rural Missouri and beyond are struggling to stay afloat,” Cleaver said in a statement. “Congress must take action to lower costs by cutting through unnecessary red tape and modernizing existing housing programs to maximize efficiency and draw more private investment — which is precisely what the bipartisan Rural Housing Service Reform Act will do.”
Added Nunn: “Too many programs meant to help are outdated, buried in red tape and no longer work for the families they were created to serve. This bipartisan bill cuts through that bureaucracy to protect affordable housing, speed up repairs and modernize USDA’s tools.”
The legislation has received broad backing from affordable housing groups and other industry associations, many of whom issued statements affirming their support.
Renee Willis, president and CEO of the National Low Income Housing Coalition, said the bill makes “much-needed, common-sense improvements to USDA Rural Housing Service programs to ensure they better meet the affordable housing needs of rural communities.”
Colleen Fisher, executive director of the Council for Affordable and Rural Housing, thinks the bill’s provisions “provide owners with tools they currently do not have and at the same time assure residents that they will continue to have an affordable place to call home.”
Bill Killmer, senior vice president of legislative affairs at the Mortgage Bankers Association, said the MBA is pleased that the legislation both expands affordable housing options in rural communities and provides long-term stability for rental assistance.
And Lance Henning, CEO of the Greater Des Moines Habitat for Humanity, observed that “far too many of our neighbors are priced out of homeownership.”
“The affordable housing crisis confronting our nation is felt in our small towns as much as it is in any big city,” Henning stated. “All efforts that help make homeownership more accessible are a step in the right direction.”
