Rural Hospital Revitalization Act of 2026
Sen. Bennet and Sen. Moran Introduce Bill to Give Rural Hospitals Interest-Free Loans
The Rural Hospital Revitalization Act of 2026 is currently in the early stages of the legislative process. It has been sent to the Senate Committee on Agriculture, Nutrition, and Forestry for review. No further actions are scheduled at this time.
Legislative Progress
Key Points
- The bill creates a new loan program through the USDA's community facilities direct loan program that provides zero-percent interest loans to rural hospitals for building new facilities or renovating old ones.
From policy text
“the Secretary shall make temporary zero-percent interest loans to eligible rural hospitals described in subsection (b) for the construction of replacement hospital facilities or the improvement or renovation of existing hospital facilities in accordance with this section.”
View in full text - To qualify, a hospital must be in a county with fewer than 20,000 people, be a certain distance from the nearest hospital, or be designated as a critical access or rural emergency hospital. It must also have been licensed in its community for at least 30 years.
From policy text
“the campus (as defined in section 413.65(a)(2) of title 42, Code of Federal Regulations (or successor regulations)) of which is in a county with a population of less than 20,000 inhabitants”
View in full text - The zero-interest period lasts for five years. After that, the government assesses whether the hospital is financially strong enough to refinance at normal rates. If the hospital is still struggling, it can apply for one five-year renewal of the zero-interest terms.
- There is also an interest rate protection option: even if a hospital is financially stable after five years, it can keep the zero-percent rate for another five years if the prevailing community facilities loan rate is above 2.5 percent.
- Priority goes to hospitals in the most remote areas (fewer than 6 people per square mile), those serving high shares of Medicare, Medicaid, or self-pay patients, and those that cannot afford renovation at standard loan rates.
- Hospitals receiving these loans are also eligible for technical assistance grants to help with operational improvements and financial stability, delivered through HRSA and USDA rural development programs.
From policy text
“A hospital that receives a loan under this section shall be eligible for assistance through an award under a covered program to support operational improvements and improve financial stability”
View in full text
Impact Analysis
Personal Impact
Milestones
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Introduced in Senate
Related News
2 articlesRural hospitals could apply for temporary interest-free construction, renovation loans under new bipartisan bill
The Rural Hospital Revitalization Act would allow eligible facilities to request temporary interest-free loans for construction or renovation projects. Funding would come from the USDA's Community Facilities Direct Loan Program to help facilities operating in the red modernize infrastructure.
Sens. Moran, Bennet Introduce Bipartisan Legislation to Revitalize Rural Hospitals
The Rural Hospital Revitalization Act would help rural hospitals fund new construction or renovate existing facilities. The bill includes a five-year interest-free period, after which the Secretary of Agriculture conducts a financial reassessment to determine if the hospital can pay market rates.
Source Information
Document Type
Congressional Bill
Official Title
Rural Hospital Revitalization Act of 2026
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.