Bill > HR1246

This bill amends the Farm Credit Act of 1971 to enable Farm Credit System institutions (including Farm Credit Banks, direct lender associations, and banks for cooperatives) to provide financial support for essential community facilities in rural areas. Specifically, these institutions can now make loans, provide commitments, and offer technical assistance for projects related to healthcare, education, child care, public safety, and other vital services in rural communities. To ensure responsible lending, the bill includes several key limitations: institutions can only finance up to 15 percent of their total outstanding loans for these projects, and they must first offer the financing opportunity to at least one domestic lending institution (with priority given to community banks in the facility's service area). Before providing financing, the institution must report the offer to the Farm Credit Administration. The bill also requires the Farm Credit Administration to submit an annual report to Congress detailing the activities undertaken under this new provision. The amendments will take effect on October 1, 2025, and are designed to help improve infrastructure and service delivery in rural areas by expanding financial resources for critical community facilities.

Agriculture and Natural Resources, Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/1246/all-info