Sponsors (2)
The bill requires an independent evaluation that improves transparency about whether expanded Section 242 mortgage insurance helps hospital financing and informs Congress, but it imposes administrative costs on HUD and could create short-term uncertainty for hospitals planning projects.
Hospitals and health systems will get an independent, 2‑year assessment of whether the expanded Section 242 mortgage insurance is improving access to capital and facility financing, and Congress will receive evidence to guide future policy or funding decisions.
Hospitals and health systems planning projects may face uncertainty or altered financing terms if the mandated report prompts changes to the Section 242 program.
HUD staff will need to spend time and resources preparing the required report, which could divert agency capacity from program delivery or other priorities.
Based on analysis of 3 sections of legislative text.
Edits HUD statute to modify and renumber provisions expanding the hospital mortgage insurance program under section 242 and requires HUD to report within two years on the expansion's effectiveness.
Official title: To amend section 242 of the National Housing Act to provide parity with respect to access to the mortgage insurance for hospitals program for licensed hospitals, and for other purposes.
Introduced January 13, 2026 by Thomas Earl Emmer · Last progress January 13, 2026
Makes a narrow change to HUD-authorized hospital mortgage insurance by removing and renumbering specific subparagraph language in 12 U.S.C. 1715z–7(b)(1), which implements an expansion of the National Housing Act hospital mortgage insurance program (section 242). The amendment takes effect after a 9-month delay, and the Department of Housing and Urban Development must provide Congress a report within two years evaluating the results and effectiveness of the expansion enacted by this change.