Rural Housing Regulatory Relief Act

#6327 | HR Congress #119

Subjects:

Last Action: Referred to the Committee on Financial Services, and in addition to the Committee on Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (11/28/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Rural Housing Regulatory Relief Act" is a bill that aims to streamline the process for providing federal assistance for the construction or modification of residential housing on "infill sites," which are developed areas with existing infrastructure. Specifically, the bill exempts certain types of assistance under the Housing Act of 1949 from the requirements of the National Environmental Policy Act (NEPA), meaning these projects will not be categorized as "major Federal actions" that require extensive environmental reviews.

The legislation seeks to expedite housing projects in rural areas by reducing administrative burdens and costs associated with environmental assessments. Additionally, the Secretary of Agriculture is tasked with reporting to Congress five years after the enactment to evaluate the effectiveness of this exemption, its impact on the affordable housing sector, and to provide recommendations for future related legislative actions.

Key definitions include "infill site" as a location with existing infrastructure, and "greenfield" as undeveloped land. The bill does not alter any requirements under laws other than NEPA.

Possible Impacts

Here are three examples of how the "Rural Housing Regulatory Relief Act" legislation could affect people:

1. **Increased Housing Availability**: By exempting certain housing assistance projects from the National Environmental Policy Act (NEPA) review process, the legislation could lead to faster construction and modification of residential housing on infill sites. This could help address housing shortages in rural areas, allowing more families to access affordable housing options more quickly.

2. **Reduction in Administrative Costs**: The exemption from NEPA requirements may lead to a decrease in the bureaucratic processes and associated costs for developers and local governments involved in housing projects. This could result in lower overall project costs, making it easier for developers to invest in rural housing, which could ultimately benefit residents through lower rent or purchase prices.

3. **Focus on Environmental Risks**: The legislation specifies that infill sites do not include areas designated as high risk for wildfire or flooding. This provision could protect communities by ensuring that new housing developments are not located in environmentally hazardous areas, potentially reducing the risks of property damage and ensuring safer living conditions for residents. However, it may also limit options for housing development in some regions, depending on local infrastructure and environmental assessments.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6327 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 6327

   To exempt from the requirements of NEPA the provision of certain 
assistance for the construction or modification of residential housing 
                on infill sites, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 28, 2025

Mr. Vindman (for himself, Mr. Flood, Mr. Vicente Gonzalez of Texas, and 
 Mr. Downing) introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
 Natural Resources, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To exempt from the requirements of NEPA the provision of certain 
assistance for the construction or modification of residential housing 
                on infill sites, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Housing Regulatory Relief 
Act''.

SEC. 2. APPLICABILITY OF NEPA TO THE PROVISION OF CERTAIN ASSISTANCE 
              FOR THE CONSTRUCTION OR MODIFICATION OF RESIDENTIAL 
              HOUSING ON INFILL SITES.

    (a) Exemption.--Providing assistance under section 501, 502, 504, 
515, 533, or 538 of the Housing Act of 1949 (42 U.S.C. 1471, 1472, 
1474, 1485, 1490m, or 1490p-2) for the construction or modification of 
residential housing located on an infill site may not be considered a 
major Federal action under section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
    (b) Report.--Not later than the date that is 5 years after the date 
of enactment of this section, the Secretary of Agriculture shall submit 
to Congress a report that--
            (1) determines whether the implementation of this section--
                    (A) reduced the amount of time it takes to review 
                an application for assistance described in subsection 
                (a); and
                    (B) reduced the administrative cost of providing 
                such assistance;
            (2) describes how the implementation of this section 
        affects the affordable housing sector in rural America; and
            (3) includes any recommendations from the Secretary of 
        Agriculture for future congressional action regarding revisions 
        to categorical exclusions or exemptions from the requirements 
        of the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.) related to the provision of assistance described 
        in subsection (a).
    (c) Savings Clause.--This section does not affect any requirement 
under any law other than the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.).
    (d) Definitions.--In this section:
            (1) Greenfield.--The term ``greenfield'' means a site that 
        has not been developed, including a woodland, farmland, and an 
        open field.
            (2) Infill site.--The term ``infill site''--
                    (A) means a site that is served by existing 
                infrastructure, including water lines, sewer lines, and 
                roads; and
                    (B) does not include--
                            (i) a site that is served by existing 
                        infrastructure that only consists of a road;
                            (ii) a site within a census tract 
                        designated as very high or relatively high risk 
                        for wildfire, coastal flooding, and riverine 
                        flooding under the National Risk Index of the 
                        Federal Emergency Management Agency pursuant to 
                        section 206 of the Robert T. Stafford Disaster 
                        Relief and Emergency Assistance Act (42 U.S.C. 
                        5136); and
                            (iii) a greenfield.
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