United StatesProvides temporary zero-percent loans to eligible rural hospitals for renovation
It aims to preserve local hospital services by funding facility repairs or replacements so remote communities keep access to care and related jobs.
What it does
Creates a new Section 306B authorizing temporary zero-percent interest loans for rural hospital construction, improvement, or renovation.
Defines eligibility by county population, distance to nearest hospital or designation as critical access/rural emergency hospital, and 30‑year continuous licensure.
Sets loan terms: zero percent interest and principal repayment schedule for first 5 years, followed by a Secretary assessment and potential refinancing, renewal, or conversion to standard program terms.
Allows one-time renewals of the zero-percent term for either financial weakness or interest-rate protection, with conditions and subsequent refinancing required.
Makes loan recipients eligible for targeted federal technical assistance programs during zero-interest periods and certain renewals.
Argument forHelps preserve local access to care by lowering immediate capital costs: zero-percent loans for 5 years reduce financing burdens that often force rural hospital closures.
Argument againstCost to taxpayers: providing zero-interest capital and potential renewals or long amortizations could require significant federal outlays or forgone revenue compared to standard loans.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 21Introduced in HouseLatest
- May 21Referred to the House Committee on Agriculture.Introduced
HealthcareEconomy & JobsGovernment & Ethics