Battle For The Barns: Legal Group Pushes USDA To Unlock Rural Loans For Religious Groups

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Battle For The Barns: Legal Group Pushes USDA To Unlock Rural Loans For Religious Groups

Church (Unsplash
Church (Unsplash

The Alliance Defending Freedom (ADF) has formally petitioned the U.S. Department of Agriculture to scrap what it calls “discriminatory” regulations that block rural churches and religious non-profits from accessing federal development loans.

In a petition filed Dec. 22 with Agriculture Secretary Brooke L. Rollins, the conservative legal advocacy group argues that current USDA rules unconstitutionally disqualify organizations from receiving aid solely because they engage in religious activities or plan to use funded buildings for worship.

The challenge targets specific provisions within the USDA’s Rural Development programs, which provide loans and grants for essential community infrastructure like hospitals, clinics, and emergency shelters. Under current regulations, federal funds cannot be used to pay for the construction or rehabilitation of structures used for “inherently religious activities,” including worship or religious instruction.

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ADF contends these exclusions are relics of an outdated legal era and stand in direct conflict with recent Supreme Court rulings.

“Religious organizations and churches in rural America deserve equal access to federal programs, and the First Amendment protects this fundamental right,” said Matt Bowman, senior counsel and director of regulatory practice for ADF. “Prior administrations enacted certain U.S. Department of Agriculture regulations that exclude faith-based organizations just because they engage in religious activities.”

The petition leans heavily on the “Carson trilogy”—a series of recent Supreme Court decisions (Trinity Lutheran, Espinoza, and Carson v. Makin) which established that the government cannot exclude religious observers from otherwise available public benefits based on their religious status.

According to the filing, the current rules create absurd hurdles for rural communities where resources are scarce, and buildings often serve dual purposes. The group cites examples like “one-room churches” that might transform into food pantries or emergency shelters during the week, or house churches in remote areas. Under strict readings of the current policy, a rural community center that hosts a Sunday service could be ineligible for federally guaranteed financing to fix a leaking roof.

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“These regulations are outdated… and conflict with President Trump’s executive orders protecting religious liberty,” the petition states, referencing directives to remove bureaucratic barriers for faith-based groups.

The document highlights the story of Joe Lewis, an 84-year-old whose home was rebuilt with USDA assistance—a project he publicly called a “house of God.” ADF argues that while individual housing aid is celebrated, similar logic is arbitrarily denied to community organizations that host worship services.

The group is asking the USDA to repeal three specific regulatory provisions entirely, without replacement. They argue that doing so would align the agency with the current interpretation of the Free Exercise Clause and prevent rural non-profits from having to “secularize” to receive help.

“We’re thankful to Secretary Rollins for her public commitment to religious liberty,” Bowman added. “We hope our petition will help the USDA correct discriminatory rules and ensure all its programs are operated consistent with religious liberty and fairness for all Americans.”

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