American Rescue Plan Debt Payments FAQ

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If you need additional assistance, our Call Center is available weekdays from 8 a.m. – 7 p.m. ET.  Call 877-508-8364, then select “American Rescue Plan.” Assistance is available in multiple languages. If you need an operator who speaks a language other than English or Spanish, please select English and tell the operator what language you need. | Si necesita asistencia adicional, nuestro centro de llamadas está disponible de lunes a viernes de 8 a.m. a 7 p.m. ET. Llame al 877-508-8364, luego seleccione "American Rescue Plan". La asistencia está disponible en varios idiomas. Si necesita un operador que hable un idioma que no sea inglés o español, seleccione inglés y dígale al operador qué idioma necesita.

Translated Resources for the American Rescue Plan (ARP) Debt Payments

FAQ in English

Last Updated: Feb. 25, 2022

I accepted and returned form FSA-2601 for the American Rescue Plan Act (ARPA) program, what is the status of those ARPA payments?

The FSA-2601 explained your potential eligibility under Section 1005 of the American Rescue Plan Act (ARPA), which provides debt assistance to socially disadvantaged farmers and ranchers. Many borrowers received the form, notifying them of their potential ARPA eligibility and payment amounts for eligible direct loans. Returned signed notification letters are still being accepted and processed by FSA. However, preliminary injunctions issued by multiple federal district courts have halted ARPA Section 1005 payments.

USDA continues to work closely with the Department of Justice to vigorously defend the ARPA program in federal district courts. While litigation is ongoing, you may be eligible for a COVID-related Disaster-Set Aside and/or available Primary Loan Servicing options, if making your regularly scheduled payments will put your operation in undue financial distress. We are monitoring the ARPA litigation and congressional initiatives to amend Section 1005 and will continue to keep borrowers informed regarding the program’s status.

Is USDA still defending Section 1005 in court against the lawsuits that were filed against ARPA debt assistance?

Yes, USDA and the Department of Justice continue to vigorously defend these cases.

USDA sent me a notification letter this summer, but I have not yet received assistance. How can I trust that USDA will continue to carry out this program and provide Section 1005 payments?

USDA moved swiftly to implement provisions of ARPA. However, preliminary injunctions issued in federal district courts halted ARPA Section 1005 payments. USDA continues to work closely with the Department of Justice to vigorously defend ARPA Section 1005. We are also monitoring the draft Build Back Better Act (BBBA) legislation before Congress that may amend Section 1005 of ARPA.

After ARPA passed, I chose to not make payments on my direct loan in anticipation of an ARPA Section 1005 payment. What are the potential consequences?

USDA has suspended all foreclosure, debt collection, and other adverse actions for direct Farm Loan Programs loans and Farm Storage Facility Loans for all borrowers during the pandemic. However, a delinquency on federal debt may negatively affect the ability of a borrower to obtain additional Farm Loan Programs loans and credit from other federal agencies. Existing borrowers are encouraged to seek FSA assistance through a COVID-related Disaster Set-Aside and Primary Loan Servicing options if making regularly scheduled payments will create undue financial distress.

If FSA is not taking adverse actions, why did I receive a letter saying that FSA will accelerate my loan and foreclose on my property?

Laws and regulations that govern FSA loan programs require FSA to notify borrowers of available servicing options when they become a certain number of days past due on their loan accounts. If a borrower does not timely respond to these servicing notifications, submits an incomplete application, or applies for servicing and is unable to develop a feasible loan servicing plan, FSA is required to send a notification informing these borrowers of additional servicing, reconsideration, mediation, and appeal rights.

These letters also include language explaining that if servicing rights are not exercised, or if the account is not brought current, FSA will accelerate the account and proceed to foreclosure. Local offices are currently including cover letters to these notices explaining that while the servicing rights are still available to borrowers, acceleration and foreclosure actions remain suspended. If you have received one of these letters and have questions or concerns, please reach out to your local FSA office, or see our current guidance on our website.

How would the BBBA affect ARPA Section 1005 payments?

Congress is currently considering language in the BBBA that would amend Section 1005 of ARPA. As currently drafted, the BBBA would provide full and partial debt payments on certain direct loans and would appropriate funding for loan modification services for FSA direct and guaranteed borrowers to keep their operations resilient and avoid economic disaster. USDA is monitoring the progress of the legislation and will be prepared to implement it, if passed.