Sponsors (2)
The bill creates a useful, short-term evaluation of expanded hospital mortgage insurance that can improve policymaking and financing transparency, but it imposes administrative costs on HUD and could create uncertainty for hospitals if the program is changed.
Hospitals and health systems will receive an independent, near-term assessment (within two years) on whether the expanded Section 242 mortgage insurance is improving access to capital and facility financing, helping them evaluate financing options and plan projects.
Congress (and state governments and taxpayers) will get evidence about the program’s impact on hospital construction and renovation, enabling better-informed future policy or funding decisions.
HUD will need to devote staff time and resources to prepare the mandated report, which could divert agency capacity away from program delivery and other duties.
Hospitals planning projects under current rules could face uncertainty or changed financing terms if the report leads to program alterations, potentially disrupting project timelines or budgets.
Based on analysis of 3 sections of legislative text.
Alters the Section 242 hospital mortgage insurance statute to expand financing for mental-health service facilities and requires HUD to report on outcomes within two years.
Introduced January 13, 2026 by Thomas Earl Emmer · Last progress January 13, 2026
Amends the federal hospital mortgage insurance statute to change specified subparagraphs and timing, effectively enabling an expansion of the Section 242 hospital mortgage insurance program to cover facilities providing mental-health services. Requires the Department of Housing and Urban Development to submit a report to Congress within two years assessing the results and effectiveness of that expansion. The statutory change becomes effective after the nine-month period following enactment, and HUD must evaluate and report on how the program expansion performed within two years of enactment.