Costa, McBride, and Moylan Demand USDA Reverse Harmful Changes to Rural Homeownership Program
WASHINGTON — Today, Representatives Jim Costa (CA-21), Sarah McBride (DE-AL), and James Moylan (GU-AL) led a bipartisan letter urging U.S. Secretary of Agriculture Brooke Rollins and the U.S. Department of Agriculture (USDA) to immediately reverse recent changes to the Section 502 Direct Loan Program, a key federal program that helps low- and very low-income families in rural communities access homeownership. The letter calls on USDA to rescind the February 10, 2026, handbook revisions and work with Congress and stakeholders on any future updates to the program.
The Section 502 Direct Loan Program serves as the federal government’s primary rural homeownership tool, helping families purchase, build, rehabilitate, or repair homes in rural communities. The February 10 changes lower loan limits, add new administrative review requirements, reduce support for nonprofit loan packagers, and make other revisions stakeholders warn will reduce loan access and slow approvals during an ongoing housing affordability crisis.
In the letter, the members wrote:
“These changes undermine one of the federal government’s most important rural homeownership tools and risk putting affordable homeownership further out of reach for the low-income families the program is intended to serve. Taken together, these revisions will make it harder for USDA to move loans efficiently and harder for otherwise eligible rural families to qualify. At a time when rural housing affordability has sharply deteriorated and homeownership is already becoming harder to attain for working families, USDA should be strengthening the program, not making access harder."
The letter also raises concerns about the impact the changes will have on nonprofit housing organizations and self-help housing programs that assist families through the loan process, including organizations serving communities throughout the Central Valley and other underserved areas. Members urged USDA to protect applicants already in the pipeline and maintain technical assistance support for Mutual Self-Help Housing programs.
To read the full letter to Secretary Rollins, click HERE.