USDA and HUD historic MOU establishes a framework for collaboration across federal housing programs

The U.S. Department of Agriculture (USDA) and the U.S. Department of Housing and Urban Development (HUD) entered into a historic Memorandum of Understanding (MOU) to streamline standards related to environmental review, environmental impact, environmental regulations, and physical inspections tied to housing. The agreement advances the Trump Administration's commitment to government efficiency, deregulation and a whole-of-government approach to better serve rural communities, and Americans seeking affordable housing.

This agreement continues the historic investments that the Trump Administration has already made in rural America. In Fiscal year 2025, USDA’s Rural Development invested more than $42 billion in new funding for home purchases, repairs to affordable rental housing, community facilities like hospitals and schools, water and wastewater upgrades, broadband and energy projects, and business development. HUD and USDA together represent the largest holder of multi-family housing units.

“For too long regulation and bureaucracy have slowed the growth of the next generation of America’s Rural homeowners,” said Secretary Brooke L. Rollins, “Today’s MOU is another example of the Trump Administration getting out of the way to make it easier for homeownership across the nation. I am proud to work with Secretary Turner as we continue to keep rural America great.”

“Since Day 1, President Trump has prioritized removing burdensome regulations that hinder home construction and increase costs,” said Secretary Scott Turner, “HUD and USDA are working together to streamline environmental reviews and end regulations that hinder rural housing development. I look forward to working with Secretary Rollins to achieve the deregulatory goals set by President Trump.”

Section 802 of the 21^st Century ROAD to Housing Act, titled the “Streamlining Rural Housing Act” became law on July 11, 2026. As part of this Act, the Secretary of Housing and Urban Development and the Secretary of Agriculture will enter into a memorandum of understanding to address the topics identified below.

MOU Objectives

1. Evaluate categorical exclusions under the environmental review process for housing projects funded by amounts from the Department of Housing and Urban Development and the Department of Agriculture.
2. Develop a process to designate a lead agency and streamline adoption of Environmental Impact Statements and Environmental Assessments approved by the other Department to construct housing projects funded by both agencies.
3. Maintain compliance with environmental regulations under part 58 of title 24, Code of Federal Regulations, as in effect on January 1, 2025, except as required to amend, add, or remove categorical exclusions identified under section 58.35 of title 24, Code of Federal Regulations, through standard rulemaking procedures.
4. Evaluate the feasibility of a joint physical inspection process for housing projects funded by amounts from the Department of Housing and Urban Development and the Department of Agriculture.

Agency coordination leads include Rural Development Rural Housing Service Administrator George Kelly for USDA, Chief of Staff Drew McCall and Deputy Chief of Staff Reid Wilson for HUD. HUD will lead the overall interagency coordination.

The MOU establishes a framework for collaboration across federal housing programs. Additional information about the agencies and their housing programs is available at www.usda.gov and www.hud.gov.

For more information about USDA Rural Development housing programs, visit www.rd.usda.gov.