Agency: Department of Agriculture-Farm Service Agency
Description:
To expedite assistance to distressed borrowers of direct or guaranteed loans administered by USDA’s Farm Service Agency (FSA) whose operations face financial risk.
Bill Section:
22006
New or Existing:
New
Potential Cost:
$3,100,000,000
Timeline:
FY22-31
Implementation Status/Rulemaking:
In October 2022, USDA announced that distressed borrowers have received nearly $800 million in assistance as part of Section 22006 of the Inflation Reduction Act: Source
In March 2023, USDA announced that it will provide approximately $123 million in additional, automatic financial assistance as part of Section 22006 of the Inflation Reduction Act: Source
In May 2023, USDA announced an additional $130 million in assistance to financially distressed borrowers: Source
In August, USDA announced approximately $530 million in additional, automatic financial assistance: Source
In November 2023, USDA announced $208 million in automatic financial assistance for qualifying farm and emergency loan borrowers: Source
Both the IRA Section 22006 cash flow-based assistance and extraordinary measures assistance submission periods concluded December 31, 2023.
TCS Notes:
This program offers three categories of individualized assistance: Cash Flow-Based Assistance, Extraordinary Measures Assistance, and Additional Automatic Payments for Distressed Borrowers.
Cash Flow-Based Assistance is for current Farm Service Agency (FSA) direct loan borrowers who missed an installment or are unable to make on upcoming installment due between August 1, 2022 and January 15, 2024.
Extraordinary Measures Assistance is for current FSA direct loan borrowers who took extraordinary measures – such as taking on more debt, selling property, or cashing out retirement accounts – to avoid delinquency between February 28, 2020 and October 18, 2022.
Additional Automatic Payments for Distressed Borrowers is for current FSA direct loan borrowers whose interest owed on their loan debt exceeds the principal owed, who were past due on a qualifying direct loan as of September 30, 2022 by fewer than 60 day, who became delinquent between September 30, 2022 and October 18, 2022, or who restructured/have accepted an offer to restructure a direct FLP loan after February 28, 2020.