Congress blocks federal subsidies for data centers on farmland
H.R. 10169 — To prohibit the provision of Federal financial benefit for the construction, expansion, or substantial rehabilitation of data centers on prime farmland and other certain farmland. · Filed by Mary Miller (R-IL) · Introduced Aug 27, 2026 · Referred to committee
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What it does
This bill prohibits federal agencies from providing any financial assistance, tax credits, tax deductions, or other federal financial benefits to companies building, expanding, or substantially rehabilitating data centers on prime farmland or other protected agricultural land. The prohibition applies to projects that begin after the bill becomes law.
Why we flagged it
The bill's operative mechanism is a straightforward prohibition on federal financial incentives for data center development on farmland. It is a protective measure aimed at preserving agricultural resources from conversion, not a subsidy, deregulation, or commemorative act.
What the text implies
- May reduce federal tax incentives and grants that have historically subsidized data center construction in agricultural regions, potentially shifting development to urban or already-developed areas.
- Could affect the competitiveness of data center projects in agricultural states (particularly Illinois, Iowa, Minnesota) where land is cheaper and federal incentives have been attractive.
The full analysis lists 4 implications of this text.
Who it affects
Ordinary citizens benefit from preservation of productive agricultural land, which supports food security, rural economies, and environmental health. The bill restricts federal subsidies flowing to data center companies for projects that would convert farmland, preventing taxpayer money from incentivizing the loss of irreplaceable agricultural resources.