House bill would restore rural development loans and lift annual cap to $12 million

What does this do?

HR 5598 would reauthorize the Department of Agriculture's Rural Economic Development Loan and Grant Program, which expired after 2023. The bill sets new funding at $12 million per year running from 2026 through 2030. It does not create a new program or make major policy changes.

Who does it affect?

Rural residents across the country are most directly affected. Electric cooperatives and utilities in rural areas receive the funds and then loan or grant them to local businesses and projects.

Why does it matter?

Without reauthorization, the program remains expired and rural electric cooperatives have no access to this federal funding source. The $2 million annual increase over the prior $10 million level means modestly more money would be available for projects in less populated areas that may struggle to get conventional financing.

What does it cost, and who pays?

• $12M per year, 2026–2030
• Prior level was $10M per year
• $2M annual increase