Prioritizing Rural Hospitals Act

The Prioritizing Rural Hospitals Act would direct the U.S. Department of Agriculture’s Rural Development program to give special priority from FY 2026 through FY 2031 to projects that develop rural health care facilities and rural mental/behavioral health facilities (including certified community behavioral health clinics). When awarding direct loans or grants under the Community Facilities program (Section 306(a) of the Consolidated Farm and Rural Development Act), the Secretary of Agriculture would favor applicants proposing these health-related facilities. The bill also expands how approved funds can be used: recipients could use the loans or grants for medical supplies, expanding telehealth capabilities (including related health IT systems), staffing needs (but with a cap of no more than 25% of the funds used for staffing), and renovating/remodeling facilities that have been closed. Additionally, the bill would bar national prioritization changes within the Community Facilities program for the FY 2026–2031 period, meaning the stated priority would not be redirected to other categories during that time. The act is titled the Prioritizing Rural Hospitals Act.