Sponsors
The bill aims to speed and lower the cost of rural housing by exempting certain infill USDA projects from full NEPA "major Federal action" review, trading faster project delivery and lower administrative burden for reduced environmental review, less public input, and potential local infrastructure strain and uneven treatment of at‑risk areas.
Low-income and rural households could get housing delivered faster and at lower cost because USDA infill projects exempted from being treated as a NEPA "major Federal action" may face shorter review times and lower administrative burdens.
Rural communities and taxpayers could see reduced administrative costs for USDA housing programs if the exemption lowers review burdens and speeds project approvals.
Congress will receive a five-year evaluation requirement that creates oversight and evidence to inform future decisions about NEPA categorical exclusions or exemptions.
Residents near qualifying infill sites could face weaker environmental review and reduced opportunities for public input and mitigation because projects exempted from "major Federal action" review would avoid the full NEPA process.
Developers may concentrate on parcels that qualify as infill to avoid NEPA review, increasing development pressure on already-served tracts and straining local infrastructure and services.
Parcels in areas with elevated flood or wildfire risk are excluded from the infill exemption, which creates uneven effects: at-risk tracts remain subject to full review (and potential delays) while safer parcels move forward faster, potentially leaving vulnerable areas behind or delaying needed projects.
Based on analysis of 4 sections of legislative text.
Exempts certain USDA housing loans and grants for residential projects on qualifying infill sites from being treated as a "major Federal action" under NEPA and requires a five-year Congressional report on effects.
Introduced March 3, 2026 by John Peter Ricketts · Last progress March 3, 2026
Exempts certain USDA housing loans and grants used to build or modify residential housing on qualifying infill sites from being treated as a “major Federal action” under NEPA, so those projects would not automatically require a full NEPA environmental impact statement. Requires the Secretary of Agriculture to report to Congress within five years on whether the exemption shortened review times, cut administrative costs, and affected rural affordable housing, and to recommend any related changes to NEPA categorical exclusions or exemptions. The change does not remove other legal or environmental requirements and excludes projects on newly developed greenfields and high-risk flood/wildfire areas from the infill exemption.