TOP STORIES

Rural Housing Service administrator and other appointments announced

USDA Secretary Brooke Rollins on June 25 announced that George Kelly has been selected as administrator of the Rural Housing Service. Kelly has spent the majority of his career as a commercial real estate developer with Hines Interests Limited Partnership. J.R. Claeys has been appointed head of the Rural Business-Cooperative Service and Karl Elmshaeuser is the Rural Utilities Service’s administrator. Joe Gilson is joining USDA as Chief of Staff at Rural Development after working at the American Farm Bureau Federation and the office of Senator Chuck Grassley (R-IA). These positions do not require Senate confirmation.

Senate continues work on budget reconciliation bill

Senate committees are developing their versions of sections of the Big Beautiful Bill Act. The House passed H.R. 1, its version of the measure to cut taxes and spending, in May. Each portion of the Senate draft must be reviewed by the parliamentarian for compliance with Senate rules. Provisions that do not comply with the rules can be deleted, adopted separately, or rewritten and re-reviewed. So far, pieces flagged by the Senate parliamentarian include zeroing out the Consumer Financial Protection Bureau’s funding and selling public lands for housing and other uses. The Wilderness Society has analyzed and mapped the proposed land sale provisions.

Like the House bill, the Senate version would cut Medicaid and SNAP coverage. It would expand the Low Income Housing Tax Credit program but it does not include basis boosts that are in the House bill for rural and Native American LIHTC properties. It would make the New Markets Tax Credit and Opportunity Zones permanent but would not require a specific proportion of OZs to be in rural places. It would eliminate the Greenhouse Gas Reduction Fund and rescind unobligated funds from that program. It would also authorize the President to reorganize and cut federal agencies.

House committee approves FY26 USDA funding measure

The House Appropriations Committee has passed its fiscal year 2026 appropriations bill for USDA, which will next be considered by the full House. For the rural housing programs, the measure provides funding close to FY24/25 levels. The Senate committee has not yet released a draft bill or scheduled a markup. Neither house has issued a HUD appropriations bill yet.

Housing market “shrouded in uncertainty,” says State of the Nation’s Housing report

The State of the Nation’s Housing 2025 analysis, published by Harvard’s Joint Center for Housing Studies, points to record-high cost burdens for renters, rising costs for homeowners including insurance and property taxes, record-high homelessness, reduced federal support, and uncertainties created by tariffs and reduced numbers of immigrant workers. The report summarizes a variety of efforts to overcome these challenges and concludes, “Proven solutions exist. The question is whether we will enact them.”

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RuralSTAT

Home prices nationally have risen 60% from 2019 to 2025. Source: The Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2025.

CAPITOL HILL

Funding bill would restore FEMA resilience program

On June 24 the House Appropriations Committee adopted an amendment to its FY26 funding bill for the Department of Homeland Security requiring FEMA to reactivate the Building Resilient Infrastructure and Communities (BRIC) program. FEMA announced in April that it was canceling BRIC and reclaiming funds that had been committed but not yet distributed. The program, which provides hazard mitigation funding to state, local, Tribal, and territorial governments, has been particularly useful for Tribes and in rural places. The bill will now go to the full House. The Senate has not released its version yet.

REGULATIONS AND FEDERAL AGENCIES

HUD headquarters to move to Alexandria, VA

HUD Secretary Scott Turner announced the move to the Washington, DC suburbs on June 25, saying the department “will implement a staggered employee relocation plan.” The move will displace the National Science Foundation, an independent federal agency, which currently occupies the building.

USDA posts FY25 income limits

New income limits took effect June 18 for the Section 502 direct and Section 504 loan and grant programs, the Section 502 guaranteed program, and the multifamily housing programs.

Grace period set for HOTMA changes at USDA multifamily properties

Changes to income certifications for tenants in USDA multifamily housing required under the Housing Opportunity Through Modernization Act (HOTMA) are effective July 1. USDA announced it expects that all MFH tenant certifications effective on or after July 1, 2025, will comply with HOTMA requirements. Between July 1, 2025, and January 1, 2026, however, USDA will not penalize property owners for HOTMA-related tenant file errors during supervisory reviews.

Income definitions revised for USDA single-family direct program

For USDA’s Section 502 direct loan program, the definitions of “income” and “adjusted income” rely on the definitions used by HUD’s rental housing programs. HUD’s definitions were revised by the Housing Opportunity Through Modernization Act and HUD’s implementing regulations. USDA has issued guidance and an Administrator’s Exception that will implement HOTMA’s changes and govern Section 502 direct income determinations until regulatory changes can be made.

Environmental justice removed from USDA RD reviews

New guidance from USDA Rural Development states that, to comply with recent executive orders, RD is removing requirements related to environmental justice in its environmental reviews, effective retroactively to January 21, 2025.

FEMA Review Council accepts written comments

The Department of Homeland Security’s FEMA Review Council, which President Trump created by executive order, will meet on July 9. Members of the public can submit comments in writing by July 8 and can attend the meeting virtually.

CRA distressed or underserved nonmetropolitan geographies list published

The federal bank regulators have released their 2025 list of “distressed or underserved nonmetropolitan middle-income geographies” where banks’ revitalization or stabilization activities are eligible for Community Reinvestment Act credit.

Rule with protections for H-2A farmworkers suspended

The Department of Labor announced on June 20 it is pausing enforcement of a 2024 rule that strengthened protections for farmworkers with H-2A visas. Parts of the rule were already suspended in certain states as a result of legal challenges, some of which are still in litigation.

Suit claims HUD improperly withheld fair housing funds

An action filed on June 24 by the National Fair Housing Alliance and the Tennessee Fair Housing Council challenges HUD’s decision to withhold Fair Housing Initiatives Program funds. A related suit on FHIP funding, filed in February, is ongoing.

EVENTS

Public policy institutes announce commission on U.S. rural prosperity

The Brookings Institution and the American Enterprise Institute will soon launch a “high-level, bipartisan commission focused on broadening equitable rural prosperity and resilience.” The effort will be co-chaired by former U.S. Senator Heidi Heitkamp of North Dakota and former New Hampshire Governor Chris Sununu. It “aims to elevate the national policy discourse on rural development and offer practical, cross-partisan solutions grounded in local realities.” Brookings will host a public online launch event on July 1.

PUBLICATIONS AND MEDIA

Map shows homeowners insurance nonrenewals

The Brookings Institution mapped zip code level data on homeowners insurance nonrenewals from 2018 through 2022. The U.S. Treasury Department’s Federal Insurance Office collected and posted this data as well as figures on claim frequency, average claim payments, and average premiums. Treasury found that over this five-year period average homeowners’ insurance costs rose 8.7% faster than the rate of inflation across the country. The highest nonrenewal rates from private insurers were in areas with the highest expected losses.

Town pilots community-based flood insurance

Isleton, CA, a town of about 800 people, has launched a pilot program to provide flood insurance to all residents. The city worked with the state government, a nearby university, and a special purpose district entity to plan for and purchase insurance. The policy will support all residents and will provide rapid, flexible payouts after a flood occurs.

Survey results highlight crucial role of Native CDFIs

The Native CDFI Network surveyed Native Community Development Financial Institutions who currently receive financial assistance or technical assistance awards from the CDFI Fund’s Native American CDFI Assistance Program to learn about the impact of the administration’s plans to withhold appropriated FY25 funds and to eliminate the programs in FY26. A summary of the survey results describes the devastation these financial institutions anticipate for their work and their communities’ wellbeing, including the following.

• “The reduction in FA funding would drastically shrink our lending capacity … preventing us from meeting projected demand for mortgage loans in 2025 and result in delayed or canceled homeownership opportunities for tribal families who are otherwise ready and qualified to purchase homes.”
• “Native Agricultural producers and businesses confront a lack of access to capital. Without the NACA program, these producers and businesses will not be able to start or expand their businesses.”
• “If this core funding is eliminated, we will be forced to scale back lending, reduce services, and halt planned expansion efforts. This would turn back the clock on economic development in Indian Country by 30 years. The harm wouldn’t just be financial – it would break trust.”
• “NACA funding is not simply a grant – it is the foundation upon which Native CDFIs build equitable access to capital and financial empowerment.”

Broadband program revised, delaying improvements to rural telehealth

The Commerce Department issued a Policy Notice in early June revising requirements that were announced in 2022 for the Broadband Equity, Access, and Deployment Program. BEAD supports states and territories providing broadband access. KFF Health News reports that by March 2025 the majority of those recipients had completed initial steps and were in the process of selecting broadband service providers. Almost 3 million people live in the more than 200 counties that lack both broadband and also primary care and behavioral health care providers who serve Medicaid patients, according to KFF Health News. Most of these counties are rural.

Communities foster civic relations through the arts

In their latest publication, Forecast Public Art underscores how thoughtfully designed public art enriches civic health by fostering stronger, more inclusive communities. Including Spring Grove, MN – a former Citizens’ Institute for Rural Design workshop community – the article highlights projects utilizing the arts to bring communities together, empowering local voices, showcasing community identity, and driving social impact.

HAC

Report examines resiliency in Central Appalachia

Rural Research Brief: Natural Disasters and Resiliency in Central Appalachia, a new HAC publication, considers the region’s vulnerability to increasingly erratic and intense weather patterns. The report leverages secondary data from journal articles, reports, and analyses investigating the region’s resiliency, recovery efforts, the effects of natural disasters on the region, and their intersection with ongoing challenges.

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

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