A bipartisan group of U.S. senators introduced legislation designed to expand access to home financing in rural areas by updating eligibility rules under the Farm Credit Act of 1971.

The proposal, known as the FARM Home Loans Act, is sponsored by Sens. Peter Welch of Vermont, Jim Justice of West Virginia, Adam Schiff of California, and Cindy Hyde-Smith of Mississippi. The bill would increase the population cap defining eligible rural communities from 2,500 residents to 10,000, allowing more areas to qualify for farm credit-backed housing loans.

Supporters say the change could make nearly 30 million additional Americans eligible for assistance, particularly in smaller communities where housing costs have surged in recent years. The legislation would also allow financing for homes and accessory dwelling units, aligning eligibility standards more closely with those used by the U.S. Department of Agriculture’s rural housing programs.

Lawmakers pointed to rising housing costs as a driving factor behind the bill. Data from Redfin shows rural home prices have climbed sharply since before the pandemic, with the median price reaching about $280,900, and the income needed to afford a home increasing significantly.

Backers of the legislation argue that expanding access to credit could improve competition among lenders and provide more opportunities for families seeking homeownership in rural regions. The bill’s sponsors highlighted the potential impact in their states, noting that many residents are currently excluded from existing loan programs due to outdated population thresholds.

Companion legislation has also been introduced in the House, signaling broader bipartisan interest in addressing rural housing challenges. The measure follows a larger Senate housing package passed earlier this month that has yet to advance in the House, with lawmakers continuing to debate additional steps to address affordability concerns nationwide.