I 
119TH CONGRESS 
1ST SESSION H. R. 6779 
To amend the Consolidated Farm and Rural Development Act to expand 
eligibility for direct loans to individuals or entity members that hold 
at least a 50 percent interest and that are or will become bona fide 
operators of the farm real estate acquired, improved, or supported with 
farm ownership, operating, or emergency loans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 17, 2025 
Mr. BOST (for himself, Ms. BUDZINSKI, and Mr. ROSE) introduced the 
following bill; which was referred to the Committee on Agriculture 
A BILL 
To amend the Consolidated Farm and Rural Development 
Act to expand eligibility for direct loans to individuals 
or entity members that hold at least a 50 percent inter-
est and that are or will become bona fide operators 
of the farm real estate acquired, improved, or supported 
with farm ownership, operating, or emergency loans, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘USDA Loan Mod-
ernization Act’’. 
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SEC. 2. PERSONS ELIGIBLE FOR REAL ESTATE LOANS. 
Section 302(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922(a)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘a majority’’ and inserting ‘‘at 
least a 50 percent’’; and 
(B) in subparagraph (C), by striking ‘‘a 
majority’’ and inserting ‘‘at least a 50 percent’’; 
and 
(2) in paragraph (2), by striking subparagraphs 
(A) and (B) and inserting the following: 
‘‘(A) ELIGIBILITY OF QUALIFIED OPERA-
TORS.—Qualified operators, as defined by the 
Secretary, shall be considered to meet the oper-
ator requirement of paragraph (1). 
‘‘(B) ELIGIBILITY
OF
CERTAIN
OPER-
ATING-ONLY ENTITIES.—An applicant that is or 
will become only the operator of farm real es-
tate acquired, improved, or supported with 
funds under this subtitle shall be considered to 
meet the owner-operator requirements of para-
graph (1) if 1 or more of the individuals who 
is an owner of the farm real estate owns at 
least 50 percent (or such other percentage as 
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the Secretary determines is appropriate) of the 
applicant. 
‘‘(C) ELIGIBILITY OF CERTAIN EMBEDDED 
ENTITIES.—An entity that is an owner-operator 
described in paragraph (1), or an operator de-
scribed in subparagraph (B) of this paragraph 
that is owned, in whole or in part, by 1 or more 
other entities, shall be considered to meet the 
direct ownership requirement imposed under 
paragraph (1) if at least 75 percent of the total 
ownership interests of the embedded entity, or 
of the other entities, is owned, directly or indi-
rectly, by qualified operators of the farm ac-
quired, improved, or supported with funds 
under this subtitle.’’. 
SEC. 3. PERSONS ELIGIBLE FOR OPERATING LOANS. 
Section 311(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘a majority’’ and inserting ‘‘at 
least a 50 percent’’; and 
(B) in subparagraph (C), by striking ‘‘a 
majority’’ and inserting ‘‘at least a 50 percent’’; 
and 
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(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) SPECIAL RULES.— 
‘‘(A) ELIGIBILITY OF QUALIFIED OPERA-
TORS.—Qualified operators, as defined by the 
Secretary, shall be considered to meet the oper-
ator requirement of paragraph (1). 
‘‘(B) ELIGIBILITY
OF
CERTAIN
OPER-
ATING-ONLY ENTITIES.—An entity that is an 
operator described in paragraph (1) that is 
owned, in whole or in part, by other entities, 
shall be considered to meet the direct ownership 
requirement imposed under paragraph (1) if at 
least 75 percent of the total ownership interests 
of the embedded entity, or of the other entities, 
is owned, directly or indirectly, by qualified op-
erators of the farm improved or supported with 
funds under this subtitle.’’. 
SEC. 4. PERSONS ELIGIBLE FOR EMERGENCY LOANS. 
Section 321 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1961) is amended— 
(1) by striking all that precedes ‘‘shall make 
and insure’’ and inserting the following: 
‘‘SEC. 321. ELIGIBILITY FOR LOANS. 
‘‘(a) IN GENERAL.— 
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‘‘(1) ELIGIBILITY
REQUIREMENTS.—The Sec-
retary’’; and 
(2) in subsection (a)— 
(A) in the 1st sentence— 
(i) by striking ‘‘(1)’’ and inserting 
‘‘(A)’’; 
(ii) by striking ‘‘(2)’’ and inserting 
‘‘(B)’’; 
(iii) by striking ‘‘(A)’’ the 1st place it 
appears and inserting ‘‘(i)’’; 
(iv) by striking ‘‘(B)’’ the 1st place it 
appears and inserting ‘‘(ii)’’; and 
(v) by striking ‘‘a majority’’ each 
place it appears and inserting ‘‘at least a 
50 percent’’; 
(B) by striking the 5th sentence; and 
(C) by adding at the end the following: 
‘‘(2) SPECIAL RULES.— 
‘‘(A) ELIGIBILITY OF QUALIFIED OPERA-
TORS.—Qualified operators, as defined by the 
Secretary, shall be considered to meet the oper-
ator requirement of paragraph (1). 
‘‘(B) ELIGIBILITY
OF
CERTAIN
OPER-
ATING-ONLY ENTITIES.—An applicant that is or 
will become only the operator of farm real es-
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tate acquired, improved, or supported with 
funds under this subtitle shall be considered to 
meet the owner-operator requirements of para-
graph (1) if 1 or more of the individuals who 
is an owner of the real estate owns at least 50 
percent (or such other percentage as the Sec-
retary determines is appropriate) of the appli-
cant. 
‘‘(C) ELIGIBILITY OF CERTAIN EMBEDDED 
ENTITIES.—An entity that is an owner-operator 
described in paragraph (1), or an operator de-
scribed in subparagraph (B) of this paragraph 
that is owned, in whole or in part, by 1 or more 
other entities, shall be considered to meet the 
direct ownership requirement imposed under 
paragraph (1) if at least 75 percent of the total 
ownership interests of the embedded entity, or 
of the other entities, is owned, directly or indi-
rectly, by qualified operators of the farm ac-
quired, improved, or supported with funds 
under this subtitle.’’. 
Æ 
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