Rural Health Care Facilities Revitalization Act
- Bill Number
- H.R. 7514
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2026-03-20: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
- Last Updated
- 2026-07-02T08:07:06Z
AI-Generated Summary
Purpose
The Rural Health Care Facilities Revitalization Act (H.R. 7514) aims to support rural health care providers by allowing them to access certain federal agricultural credit programs. These programs, typically used for rural development, can now help facilities refinance debts, modernize technology and equipment, and cover essential operating costs to ensure continued health services in underserved rural areas.
Key Provisions
- Eligible Facilities and Uses: Rural health care facilities—such as hospitals, behavioral health centers, clinics (including mobile ones), home health agencies, and long-term care facilities—can apply for assistance under existing federal programs (sections 306(a) for community facilities and 310B of the Consolidated Farm and Rural Development Act). This assistance may be used to:
- Refinance existing debt obligations.
- Update telehealth systems, medical equipment, or online databases.
- Support ancillary needs, like day-to-day operating expenses or building reserve funds.
- Limitations on Use: Assistance is only available if it:
- Helps maintain access to health services in the rural community.
- Improves the facility's overall financial health.
- Meets the Rural Development Agency's standards for financial viability and security (e.g., ensuring the loan can be repaid without excessive risk).
- Waiver Authority: The Secretary of Agriculture can waive a specific eligibility requirement under section 302(a)(1)(D) of the Act (which generally requires applicants to show they cannot obtain credit elsewhere at reasonable rates) for facilities that are insolvent (unable to pay debts) or located in:
- Persistent poverty areas (regions with a poverty rate of 20% or higher over four measurement periods spanning about 30 years).
- Socially vulnerable communities (as defined by the Secretary, often based on factors like economic disadvantage or demographic risks).
- Distressed areas (as determined by the Secretary, typically economically struggling regions).
- Definitions:
- Rural area: A place with 50,000 or fewer residents that is not part of or adjacent to a larger urban area (over 50,000 people).
- Effective Date: Changes take effect six months after the bill becomes law.
Significant Changes to Existing Law
This bill amends the Consolidated Farm and Rural Development Act (a key law for rural infrastructure funding) by adding a new section (310J). Previously, programs like section 306(a) and 310B were primarily for agricultural and general community projects, not specifically tailored to health care. The amendment expands these to explicitly include rural health facilities and introduces flexibility for waivers in high-need areas, broadening access beyond traditional farming or utility projects.
Potential Impacts
- On Government Agencies: The U.S. Department of Agriculture's Rural Development Agency will handle more applications from health providers, potentially increasing administrative workload but allowing reallocation of existing funds to address rural health crises without new appropriations.
- On Citizens: Rural residents, especially in low-income or vulnerable communities, could benefit from sustained or improved access to essential health services, reducing closures of local facilities and travel burdens for care.
- On International Relations: No direct impacts, as this is a domestic rural development measure focused on U.S. agriculture and health programs.
Main Stakeholders Affected
- Rural Health Facilities: Direct beneficiaries, gaining tools to stabilize finances and upgrade operations.
- Rural Communities: Particularly those in poverty-stricken, vulnerable, or distressed areas, who rely on these facilities for local health care.
- U.S. Department of Agriculture (USDA): Responsible for implementing and overseeing the expanded programs, including waivers and eligibility checks.
- Taxpayers and Federal Budget: Indirectly affected through the use of existing credit assistance funds, potentially supporting rural economies without major new spending.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill builds on existing federal authority under the Consolidated Farm and Rural Development Act without creating new entitlements, but the waiver provision could face scrutiny if seen as overly lenient on credit standards, potentially affecting loan repayment rates. It promotes equity by targeting underserved areas, aligning with broader federal goals for rural revitalization.
- Constitutional: No apparent conflicts; it involves Congress's spending power and support for general welfare in rural areas, a longstanding federal role.
- Political: Highlights bipartisan interest (introduced by members from both parties) in addressing rural health disparities, amid ongoing concerns about hospital closures and telehealth needs post-pandemic. It could influence future farm bills by linking agricultural credits to health, potentially sparking debates on resource prioritization between sectors like farming and health care.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Moolenaar, John R. [R-MI-2], Rep. Tokuda, Jill N. [D-HI-2], Del. Moylan, James C. [R-GU-At Large]
Recent Actions
- 2026-03-20: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
- 2026-02-11: Referred to the House Committee on Agriculture.
- 2026-02-11: Introduced in House
- 2026-02-11: Introduced in House
Bill Versions
- Rural Health Care Facilities Revitalization Act — issued 2026-02-11 — PDF (4 pages)