Housing Issues in the 119th Congress
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Housing Issues in the 119th Congress
November 24, 2025
Congressional Research Service
https://crsreports.congress.gov
R48743
SUMMARY
Housing Issues in the 119th Congress
The 119th Congress has been considering a number of housing-related issues and potential federal
policy responses through legislative action, committee hearings, and other oversight activities.
Some issues are broad and multifaceted, such as housing affordability concerns, while others are
more narrowly related to specific federal programs or policies. This report describes selected
housing issues that have been active during the 119 th Congress and related federal activities.
R48743
November 24, 2025
Katie Jones, Coordinator
Analyst in Housing Policy
Housing Affordability
A primary area of congressional interest has been the affordability of housing for both renters and homeowners. While
housing affordability is a perennial policy issue, particularly for low-income households, it has become a growing concern in
recent years in light of notable increases in house prices and rents, rising mortgage interest rates, increasing property
insurance costs, and housing supply constraints in many housing markets. Although housing markets are local in nature, and
housing market conditions vary across the country, concerns about housing affordability have been widespread.
The 119th Congress has held several hearings to examine factors contributing to housing supply and affordability challenges
and to consider potential solutions. In addition, Members of Congress have introduced a number of bills intended to address
housing affordability and/or supply concerns in different ways. The FY2025 budget reconciliation legislation (P.L. 119-21)
enacted in July 2025 included an expansion of the low-income housing tax credit, the largest federal program supporting the
development of affordable rental housing, as well as certain changes to that program. In addition, in July 2025 the Senate
Banking, Housing, and Urban Affairs Committee unanimously advanced the ROAD to Housing Act of 2025 (S. 2651), which
addresses a variety of housing policy topics. Most of the sections in this bill are similar to previously introduced stand-alone
bills. A version of the ROAD to Housing Act passed the Senate as part of the National Defense Authorization Act for Fiscal
Year 2026 (S. 2296) in October 2025.
Congress has also expressed interest in certain issues that may contribute to, or result from, housing affordability concerns.
For example, Congress has been considering potential policy responses to rising property insurance costs that can affect the
affordability of rental or owner-occupied housing. Addressing homelessness is another issue of ongoing interest to Congress,
and provisions related to certain U.S. Department of Housing and Urban Development (HUD) homelessness programs are
included in the ROAD to Housing Act.
Other Housing-Related Provisions in FY2025 Budget Reconciliation Legislation
As noted, the FY2025 budget reconciliation legislation included an expansion of, and changes to, the low-income housing tax
credit. It also included certain other provisions related to housing. It extended and revised provisions related to the mortgage
interest deduction and deductions of state and local property taxes that were enacted as part of FY2018 budget reconciliation
legislation commonly referred to as the Tax Cuts and Jobs Act (P.L. 115-97). It eliminated several tax credits related to home
energy efficiency or residential clean energy and rescinded unobligated funding from certain programs that could be used for
green housing activities. It also included changes to funding for the Consumer Financial Protection Bureau (CFPB), which
provides oversight of many financial market actors, including mortgage originators and servicers.
Housing Assistance Programs
A number of housing issues of interest to Congress involve federal housing assistance programs, including appropriations
and proposed programmatic changes. For example, the House Financial Services Committee’s Housing and Insurance
Subcommittee has taken actions related to potential changes to the HOME Investment Partnerships Program and a HUD
block grant. The ROAD to Housing Act also includes changes to HOME.
Housing Finance
The 119th Congress enacted the VA Home Loan Reform Act (P.L. 119-31), which establishes a new loss mitigation option
for veterans with home loans guaranteed by the Department of Veterans Affairs (VA). It establishes a partial claim option,
which is a way of resolving a mortgage delinquency that allows missed payments to be moved to the end of the loan under
certain circumstances. Another issue of interest to the 119 th Congress is the future of Fannie Mae and Freddie Mac, two
government-sponsored enterprises that back over half of residential mortgages and have been in conservatorship since 2008.
The Trump Administration has expressed interest in returning these companies to the private sector, though details are
unclear.
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Housing and Disaster Recovery
Issues related to housing and disaster recovery have been of interest to Congress, including potential changes to the Federal
Emergency Management Agency (FEMA), which administers certain types of housing assistance for disaster survivors;
reauthorization of the National Flood Insurance Program (NFIP); and potential changes to the Community Development
Block Grant-Disaster Recovery (CDBG-DR) program through which Congress has provided funding for long-term recovery
after some disasters.
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Contents
Introduction ..................................................................................................................................... 1
Housing Market Conditions ............................................................................................................ 2
Housing Costs ........................................................................................................................... 2
House Prices ....................................................................................................................... 2
Asking Rents ....................................................................................................................... 3
Mortgage Interest Rates ...................................................................................................... 4
Housing Cost Burdens ........................................................................................................ 5
Housing Supply ......................................................................................................................... 6
Number of Homes for Sale ................................................................................................. 7
Rental Vacancy Rates .......................................................................................................... 8
New Housing Construction ................................................................................................. 8
Selected Housing Issues and Federal Policy Implications ............................................................ 10
Housing Affordability ............................................................................................................. 10
Selected Congressional Actions ......................................................................................... 11
Selected Administrative Actions ....................................................................................... 12
Housing and Insurance ............................................................................................................ 14
Housing-Related Provisions in the FY2025 Budget Reconciliation Law ............................... 16
Housing Tax Provisions .................................................................................................... 16
Rescissions of Unobligated Balances from Programs Funding Green Housing
Activities ........................................................................................................................ 19
CFPB Funding .................................................................................................................. 19
Executive Orders and Other Administrative Actions: Implications for Housing .................... 20
Federal Housing Assistance Programs .................................................................................... 21
Appropriations .................................................................................................................. 22
Proposed Changes to HOME and CDBG ......................................................................... 23
Homelessness .......................................................................................................................... 27
Homeownership and Housing Finance ................................................................................... 28
Status of Fannie Mae and Freddie Mac ............................................................................ 28
Loss Mitigation Options for VA Home Loans .................................................................. 30
Housing and Disaster Recovery .............................................................................................. 31
FEMA’s Individuals and Households Program (IHP) ....................................................... 32
The National Flood Insurance Program (NFIP) ................................................................ 32
CDBG-DR ........................................................................................................................ 33
Figures
Figure 1. Inflation-Adjusted (Real) Median Sales Prices for New and Existing SingleFamily Homes .............................................................................................................................. 3
Figure 2. Inflation-Adjusted (Real) Median Asking Rent ............................................................... 4
Figure 3. Mortgage Interest Rates ................................................................................................... 5
Figure 4. Cost-Burdened Renters and Owners, by Household Income ........................................... 6
Figure 5. Number of Homes for Sale, New and Existing ................................................................ 7
Figure 6. Rental Vacancy Rates ....................................................................................................... 8
Figure 7. Total Number of Housing Units Started ........................................................................... 9
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Figure 8. Total Number of Housing Units Completed .................................................................. 10
Tables
Table A-1. Housing Bills in the 119th Congress that Received Committee or Floor Action
as of November 24, 2025 ........................................................................................................... 35
Table B-1. Housing-Related Hearings in the 119th Congress ........................................................ 36
Appendixes
Appendix A. Housing Bills in the 119th Congress ......................................................................... 35
Appendix B. Housing Hearings in the 119th Congress .................................................................. 36
Contacts
Author Information........................................................................................................................ 37
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Introduction
Housing in the United States is primarily a private market enterprise, regulated at the state and
local levels. Nevertheless, federal policymakers play important roles in housing policy. These
roles include regulating and supporting the housing finance system, providing affordable housing
resources to state and local governments or other public or private entities, encouraging certain
housing activities via federal tax policy, and enforcing fair housing laws, among other functions.
Congress establishes laws governing U.S. housing policy and housing finance, funds housing
policies and programs via the annual appropriations process and the federal tax code, and
oversees policy and program implementation by various federal agencies. The House Financial
Services Committee and the Senate Banking, Housing, and Urban Affairs Committee, in
particular, play prominent roles in many of these functions as committees of jurisdiction over
most federal housing policy and programs. Federal agencies involved in housing policy and
programs include the U.S. Department of Housing and Urban Development (HUD), the Federal
Housing Finance Agency (FHFA), the U.S. Department of the Treasury (Treasury), the U.S.
Department of Agriculture (USDA), and others.
The 119th Congress has been considering a number of housing-related issues and federal policy
concerns through legislation, hearings, or other activities, including the following:
•
•
•
Several housing-related tax provisions were included in FY2025 budget
reconciliation legislation (P.L. 119-21) that was signed into law by President
Trump on July 4, 2025. These provisions include an expansion of the low-income
housing tax credit and certain changes to that program, extensions and revisions
of provisions related to the mortgage interest deduction and deductions of state
and local property taxes that were enacted as part of FY2018 budget
reconciliation legislation, sometimes referred to as the Tax Cuts and Jobs Act
(TCJA, P.L. 115-97), and the elimination of several tax credits related to home
energy efficiency or residential clean energy.
Congress has expressed ongoing concern about housing affordability broadly and
for lower-income households in particular. The 119th Congress has held hearings
to examine factors contributing to housing supply and affordability challenges
and to consider potential solutions (see Appendix B for a list of housing-related
hearings), and a number of bills related to housing affordability have been
introduced. These include the ROAD to Housing Act of 2025 (S. 2651),
legislation advanced out of the Senate Banking Committee in July 2025. A
version of this bill was passed by the Senate as Division I of the National
Defense Authorization Act for Fiscal Year 2026 (S. 2296) in October 2025.
Additional issues of interest to the 119th Congress have included the rising costs
of homeowners’ and rental property insurance, the potential implications of
various administrative actions on federal housing programs, and loss mitigation
options available for veterans with mortgages backed by the U.S. Department of
Veterans Affairs (VA).
This report begins with a brief overview of national housing market conditions to provide context
for the housing policy issues discussed throughout this report. It then provides a high-level
overview of selected housing issues that are active in the 119th Congress and, where applicable,
refers to more in-depth CRS reports on the issues discussed. It will be updated periodically
throughout the 119th Congress.
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Housing Market Conditions
This section provides background on national housing market conditions, focusing on selected
indicators related to housing costs (such as prices and mortgage interest rates) and housing supply
(such as measures of housing inventory and construction). In most cases, the data presented
reflect conditions at the beginning of 2025, the first year of the 119th Congress.
National housing market indicators provide an overall sense of general trends in housing in the
United States. However, local housing market conditions vary significantly, and national housing
market trends may not reflect conditions in a specific area.
Housing Costs
House prices and rents both increased steadily for about a decade prior to 2020 before rising more
sharply for a few years during the COVID-19 pandemic.1 While house price and rent increases
have moderated more recently or, in some cases, reversed, house prices and rents both remain
notably higher than they were prior to the pandemic. Mortgage interest rates also began to rise in
2022, adding to homebuyer affordability concerns. Increases in other costs of homeownership,
such as homeowners insurance, have also contributed to affordability pressures for both new
homebuyers and existing homeowners.2
While housing affordability for the lowest-income households is a perennial policy issue, these
increases in housing costs in the years since the COVID-19 pandemic began have raised broader
affordability concerns for both homebuyers and renters at a wider range of income levels.
House Prices
Homes for sale can be existing homes or newly built homes. New home prices are typically
higher than existing home prices, reflecting factors such as building costs, amenities, home size,
and location. The difference between new and existing home prices has narrowed of late, though
trends vary by location.3
Most home sales are existing homes rather than new homes.4 As shown in Figure 1, in 2024 the
median home price for an existing home was $407,500, an increase of 2% from 2023 on an
inflation-adjusted basis and an increase of 22% over the 2019 inflation-adjusted median existing
home price of $333,634. The median home price for a new home fell in 2024: at $420,100, it was
down 5% from the 2023 inflation-adjusted median new home price, though up 6% since 2019.5
1 These sharp price increases were attributable to a number of factors, including low interest rates, the effect of the
pandemic on housing demand patterns, and supply chain disruptions that affected housing construction. See, for
example, John V. Duca and Anthony Murphy, Why house prices surged as the COVID-19 pandemic took hold, Federal
Reserve Bank of Dallas, December 28, 2021, https://www.dallasfed.org/research/economics/2021/1228.
2
Steve Koller, “The Insurance Crisis Continues to Weigh on Homeowners,” Joint Center for Housing Studies of
Harvard University, Housing Perspectives blog, December 9, 2024, https://www.jchs.harvard.edu/blog/insurancecrisis-continues-weigh-homeowners.
3 See, for example, Joel Berner, “New-Construction Insights: New Builds Offer Affordability Edge,” August 7, 2025,
https://www.realtor.com/research/new-construction-insights-2025q2.
4 In 2024, for example, 4.1 million existing homes were sold compared to 683,000 new homes. See HUD’s U.S.
Housing Market Conditions report, “Demand Data – Home Sales,” https://www.huduser.gov/portal/ushmc/
hd_home_sales.html.
5 New and existing home price data are from the U.S. Census Bureau and the National Association of Realtors, as
reported by HUD’s Office of Policy Development and Research in its U.S. Housing Market Conditions reports at
https://www.huduser.gov/portal/ushmc/quarterly_commentary.html.
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On a nominal basis, prices have experienced larger increases: existing median home prices have
increased from $271,900 in 2019 to $407,500 in 2024 (an increase of nearly 50%), and new
median home prices have increased from $321,500 in 2019 to $420,100 in 2024 (an increase of
over 30%).
Figure 1. Inflation-Adjusted (Real) Median Sales Prices for New and Existing SingleFamily Homes
1995-2024
Source: CRS calculations based on data from HUD’s U.S. Housing Market Conditions reports, available
at https://www.huduser.gov/portal/ushmc/home.html (which use data from the National Association of Realtors
for existing home prices and the U.S. Census Bureau for new home prices), and data from the Bureau of Labor
Statistics for the consumer price index. Amounts are in 2024 dollars.
Notes: Gray bars indicate recessions. Amounts are adjusted for inflation using the Consumer Price Index for all
Urban Consumers (CPI-U) with 2024 as the base year.
Asking Rents
Inflation-adjusted asking rents have followed a similar trajectory as home prices, including a
steady increase in the decade leading up to the COVID-19 pandemic, a steeper increase at the
start of the pandemic, and moderation in recent years. Asking rents are an indicator of potential
costs for renters seeking to newly lease a rental unit, but they do not include rents paid by current
tenants or potential rent increases for currently occupied units. As shown in Figure 2, the median
asking rent was $1,486 in 2024, down 1% compared to the 2023 inflation-adjusted median asking
rent ($1,502) but an increase of over 20% compared to the 2019 inflation-adjusted median asking
rent ($1,233).
As with house prices, nominal asking rents have increased faster than inflation-adjusted asking
rents, from $1,005 in 2019 to $1,486 in 2024 (an increase of nearly 48%).
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Figure 2. Inflation-Adjusted (Real) Median Asking Rent
1995-2024
Source: Created by CRS using data from U.S. Census Bureau, Housing Vacancies and Homeownership
Historical Tables, Table 11A, available at https://www.census.gov/housing/hvs/data/histtabs.html, and data from
the Bureau of Labor Statistics for the consumer price index.
Notes: Gray bars indicate recessions. Amounts are adjusted for inflation using the Consumer Price Index for all
Urban Consumers (CPI-U) with 2024 as the base year.
Mortgage Interest Rates
Other costs beyond home prices affect the affordability of buying and owning a home. Most
homebuyers use a mortgage to purchase a home,6 and mortgage interest rates also began to
increase in 2022, adding to affordability pressures for prospective homebuyers. During the first
10 months of 2025, monthly average mortgage interest rates for 30-year fixed-rate mortgages
ranged between 6.25% (in October 2025) and 6.96% (in January 2025). As shown in Figure 3,
these were down from a recent high of 7.62% in October 2023, but higher than the 2011-2021
period, when average mortgage interest rates were never above 5%, were sometimes below 4%,
and at their lowest level fell below 3%.
6 According to the National Association of Realtors, roughly three-quarters of homebuyers financed their purchase in
2024, compared to about a quarter who paid cash. For first-time homebuyers, over 90% financed the purchase. See
National Association of Realtors, Highlights from Profile of Home Buyers and Sellers 2024, page 12 of the PDF,
https://www.nar.realtor/sites/default/files/2024-11/2024-profile-of-home-buyers-and-sellers-highlights-11-042024_2.pdf.
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Figure 3. Mortgage Interest Rates
January 1995-October 2025
Source: Created by CRS based on data from Freddie Mac’s Primary Mortgage Market Survey (PMMS), 30Year Fixed Rate Historic Tables, available at http://www.freddiemac.com/pmms/.
Notes: Gray bars indicate recessions. Data reflect average interest rates for conventional (i.e., not governmentinsured) conforming (i.e., meeting Fannie Mae/Freddie Mac standards, including loan limits) home purchase
mortgages to borrowers with good credit and a 20% down payment. The actual interest rate paid by any given
borrower will depend on a number of factors. In November 2022, Freddie Mac adjusted its methodology for the
PMMS by replacing traditional survey methods with administrative datasets. Freddie Mac estimates that these
changes would have only had a small impact on historical PMMS results. For more information,
see https://www.freddiemac.com/research/insight/20221103-freddie-macs-newly-enhanced-mortgage-rate-survey.
Housing Cost Burdens
Increases in housing costs in recent years have resulted in higher shares of households being
considered “cost-burdened,” defined as paying more than 30% of their income toward housing
costs. As shown in Figure 4, renters are more likely to be cost-burdened than homeowners, and
the lowest-income renter households (income under $30,000) are the most likely to be costburdened.
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Figure 4. Cost-Burdened Renters and Owners, by Household Income
2013-2023
Source: Created by CRS using calculations based on the American Community Survey 1-Year Estimates Public
Use Microdata Sample for 2013-2023, available at https://www.census.gov/data/developers/data-sets/censusmicrodata-api.html.
Note: “Cost-burdened” is defined as a household paying more than 30% of its income toward housing costs.
For more information on housing cost burdens, see CRS Report R48450, Housing Cost Burdens
in 2023: In Brief.
Housing Supply
Many researchers have suggested that the United States has a housing supply shortage in the
aggregate, although the magnitude of any shortage varies by location. Different researchers use
different methodologies and assumptions to measure housing supply shortages, leading to
different overall estimates.7 While many researchers concur that the United States has an
undersupply of housing, some have questioned the extent to which it has a shortage broadly,
arguing that shortages are concentrated in specific markets or for particular types of housing (i.e.,
housing for low-income renters).8 In areas experiencing a housing shortage, prices would be
expected to increase.
Some measures of available housing—namely, the number of homes for sale and rental vacancy
rates—decreased in the years following the 2007-2009 financial crisis. While these measures
have increased somewhat in recent years, they have not returned to the levels seen in the decade
prior to the financial crisis. Measures of new housing construction, such as housing starts and
completions, experienced precipitous drops around the financial crisis followed by a gradual
increase for about a decade. While starts and completions of new single-family properties mostly
remain below their levels from the decade before the financial crisis, construction of new units in
7 See, for example, David Wessel, Where do the estimates of a “housing shortage” come from?, Brookings, October
21, 2024, https://www.brookings.edu/articles/where-do-the-estimates-of-a-housing-shortage-come-from/ and Elena
Patel et al., Make it count: Measuring our housing supply shortage, Brookings, November 26, 2024,
https://www.brookings.edu/articles/make-it-count-measuring-our-housing-supply-shortage/.
8 See, for example, Kirk McClure and Alex Schwartz, “Where Is the Housing Shortage?,” Housing Policy Debate, vol.
35, no. 1 (2025), pp. 49-63.
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multi-unit properties (those with five or more housing units) have largely returned to or exceeded
their levels from that time period.
While indicative of general trends, national housing shortage estimates or national indicators such
as those shown below do not reflect the distinct conditions in different geographic areas or for
different types of housing (e.g., housing at different price points, or in some cases rental versus
homeownership).
Number of Homes for Sale
The number of homes available for purchase has generally decreased in the years since the 20072009 financial crisis and reached its lowest levels during the COVID-19 pandemic. While the
number has increased somewhat since then, it remains lower than the late 1990s and early 2000s.
As shown in Figure 5, the number of homes for sale in 2024 was 1.6 million, the highest level
since 2019 but lower than in every year from 1995 through 2019. While the number of homes
available for sale is currently lower than the number available in the mid-to-late 1990s, the total
population in the United States has increased since that time, from nearly 262 million people at
the start of 19959 to an estimated 341 million at the end of 2024,10 resulting in fewer homes
available for sale on a per-person basis.
Figure 5. Number of Homes for Sale, New and Existing
1995-2024
Source: Created by CRS using data from HUD’s U.S. Housing Market Conditions reports, available
at https://www.huduser.gov/portal/ushmc/home.html, which uses data from the National Association of Realtors
for existing home inventories and from the U.S. Census Bureau for new home inventories.
Notes: Data show the number of homes on the market for sale at a given point in time—in this case, the end of
the calendar year.
9 U.S. Department of Commerce, Economics and Statistics Administration, Bureau of the Census, Population Profile of
the United States, 1995, issued July 1995, https://www2.census.gov/library/publications/1995/demographics/p23189.pdf.
10 U.S. Census Bureau, U.S. and World Population Clock, https://www.census.gov/popclock/.
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Rental Vacancy Rates
The rental vacancy rate—the share of rental homes that are vacant for rent—has followed a
similar trend as the number of homes for sale. It declined in the years following the financial
crisis and, despite recent increases, remains lower than the late 1990s and early 2000s. The rental
vacancy rate was 6.8% in 2024, the highest level since 2018 and up from a low of 5.8% in 2022,
but lower than any year between 1995 and 2018. The increase in 2024 follows relatively high
levels of multifamily construction in recent years,11 as discussed in the next subsection.
Figure 6. Rental Vacancy Rates
1995-2024
Source: Created by CRS based on data from U.S. Census Bureau, Housing Vacancies and Homeownership
Annual Tables, Table 1, “Rental and Homeowner Vacancy Rates by Area,” https://www.census.gov/housing/hvs/
data/prevann.html.
Notes: Gray bars indicate recessions. Because data collection procedures were affected by the COVID-19
pandemic during some quarters in 2020 and 2021, the Census Bureau urges caution in interpreting estimates
from affected timeframes and in comparing those estimates to previous or subsequent estimates.
New Housing Construction
Measures of new housing construction, including housing starts and housing completions, also
remain below their levels from the decade before the 2007-2009 financial crisis. As shown in
Figure 7, following a precipitous drop beginning after 2005, housing starts steadily increased
from about 2010 until 2021 before declining somewhat in subsequent years. In 2024,
•
•
just over 1 million one-unit homes were started (an increase from 948,000 in
2023),
about 18,000 units in two-to-four-unit buildings were started (an increase from
about 13,000 units in 2023), and
11 Joint Center for Housing Studies of Harvard University, State of the Nation’s Housing 2025, p. 15,
https://www.jchs.harvard.edu/sites/default/files/reports/files/
Harvard_JCHS_The_State_of_the_Nations_Housing_2025.pdf.
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•
about 336,000 units in buildings with five or more units were started (a decrease
from 459,000 units in 2023).
Although starts of units in buildings with five or more units decreased between 2023 and 2024,
these starts have exceeded the levels seen before 2007 for several years, while starts of one-unit
homes and units in homes with two-to-four units have not returned to their pre-2007 levels.
Figure 7.Total Number of Housing Units Started
1995-2024
Source: Created by CRS using data from U.S. Census Bureau, New Residential Construction, Historical Data,
available at https://www.census.gov/construction/nrc/data/series.html.
Housing completions—which lag starts—follow a similar trend, as shown in Figure 8. The
number of new housing completions fell sharply after 2006 and has increased consistently since
2011. Unlike housing starts, which have decreased somewhat in recent years, the number of
housing completions has continued to increase to date. Completions increased at a faster pace
between 2023 and 2024, largely driven by an increase in completions of units in buildings with
five or more units. In 2024,
•
•
•
just over 1 million one-unit homes were completed (a small increase from just
below 1 million in 2023),
nearly 17,000 units in two-to-four-unit buildings were completed (an increase
from nearly 12,000 units in 2023), and
about 593,000 units in buildings with five or more units were completed (an
increase from 438,000 units in 2023).
Much like housing starts, the number of units completed in buildings with five or more units has
been above the levels seen before the 2007-2009 financial crisis, while completions of one-unit
properties and units in two-to-four unit properties have not regained the levels seen in the decade
prior to the financial crisis.
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Figure 8.Total Number of Housing Units Completed
1995-2024
Source: Created by CRS using data from U.S. Census Bureau, New Residential Construction, Historical Data,
https://www.census.gov/construction/nrc/data/series.html.
Selected Housing Issues and Federal Policy
Implications
The remainder of this report provides a high-level overview of housing policy issues that have
been active during the 119th Congress. It describes selected housing issues that have received
significant attention from Congress and prominent congressional or other federal actions
involving housing, but it does not address every housing issue or federal action related to housing
in the 119th Congress.
Housing issues of interest to Congress are wide-ranging, and include broad policy issues (such as
housing affordability concerns) and more targeted policy questions (such as proposed changes to
specific housing programs). Congress’s approach to considering different housing policy issues
also varies, and can include bills introduced to address one or more facets of an issue, hearings to
better understand an issue and potential federal policy options, or other oversight activities. The
ensuing discussions of these issues reflect these differences in the nature of housing policy issues
and federal actions.
Housing Affordability
As described in the “Housing Market Conditions” section, housing market trends over the past
several years have led to increasing concerns about the affordability of both rental housing and
homeownership and the extent to which insufficient housing supply may be contributing to
affordability pressures. Affordability concerns are often focused on the lowest-income renter
households, whom the private market has the most difficulty serving because the rents these
households can afford to pay are generally not sufficient to cover costs related to developing,
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maintaining, and operating rental housing that meets standards set by local governments.12
However, there has been growing concern about housing affordability at a wider range of income
levels and in a broader range of geographic areas beyond traditional higher-cost markets. This has
included concerns about workforce housing, which, depending on the context, can refer to
housing for middle-income households or for people in specific occupations, such as teachers or
law enforcement workers. While there have been some recent signs of prices softening and
inventory increasing, affordability concerns persist as housing costs remain high.
During the 119th Congress, both Congress and the Trump Administration have undertaken
activities related to housing affordability and housing supply. Some of these actions are focused
on low-income households and federal housing assistance programs that are generally targeted to
those households, while others are aimed at housing affordability more broadly.
Selected Congressional Actions
Proposals considered in past Congresses related to housing affordability have included efforts
both to increase housing supply and to defray housing costs. Such proposals have included
increasing funding for federal housing programs; expanding existing rental assistance programs
to serve more households; creating new programs to provide down payment assistance to
homebuyers or tax credits to renters, homebuyers, or builders; and efforts to encourage local
governments to address local barriers to housing development (e.g., zoning and land use
regulations, permitting processes), among other things.13 In many cases, similar bills have been
introduced in the 119th Congress.
In July 2025, the Senate Banking Committee released the ROAD to Housing Act (S. 2651),14
which was advanced out of committee unanimously.15 A version of this bill was passed by the
Senate in October 2025 as Division I of the National Defense Authorization Act for Fiscal Year
2026 (S. 2296).16 The ROAD to Housing Act (both as originally reported by committee and as
included in the Senate-passed NDAA) includes a range of housing provisions, many of which had
been included in stand-alone bills that had been previously introduced. Among other things, it
would expand the number of public housing authorities that can participate in a limited version of
the Moving to Work (MTW) program;17 amend the definition of a “manufactured home” to
remove the requirement that the home be built on a “permanent” chassis; reauthorize and amend
the HOME Investment Partnerships program;18 adopt a number of changes to rural housing
12 For example, local governments set requirements related to the habitability, size, and location of housing. These
standards can affect the types of housing that get built and the costs of building it.
13 For examples, see CRS Report R46855, Housing Issues in the 117th Congress and CRS Report R47628, Housing
Issues in the 118th Congress.
14 Senate Banking Committee, “Scott, Warren Announce Markup of Landmark Bipartisan Housing Legislation from
Banking Committee Members,” press release, July 24, 2025, https://www.banking.senate.gov/newsroom/majority/
scott-warren-announce-markup-of-landmark-bipartisan-housing-legislation-from-banking-committee-members.
15
Senate Banking Committee, “Scott, Warren Lead Banking Committee in Unanimously Advancing Comprehensive
Housing Legislation,” July 29, 2025, https://www.banking.senate.gov/newsroom/majority/scott-warren-lead-bankingcommittee-in-unanimously-advancing-comprehensive-housing-legislation.
16 The version of the ROAD to Housing Act included in the NDAA is similar, but not identical, to S. 2651.
17 Moving to Work is a demonstration program originally authorized by Congress in 1996 that allows a limited number
of public housing authorities flexibility around certain requirements in the public housing and Housing Choice Voucher
programs. MTW was expanded in 2016 to allow additional PHAs to participate in a new version of the demonstration
designed to test specific policy changes.
18 The HOME Investment Partnerships Program, or HOME (not an acronym), is a HUD block grant that provides funds
to states and eligible local governments to use for a range of affordable housing activities. For more information on
HOME, see CRS Report R40118, An Overview of the HOME Investment Partnerships Program.
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programs; make certain changes to HUD environmental review requirements; and authorize new
grant programs aimed at incentivizing communities to reduce regulatory barriers to housing. For
more information, see CRS Report R48732, ROAD to Housing Act of 2025.
In addition, certain tax-related housing bills that have been introduced in previous Congresses and
had a large number of cosponsors from both parties have been reintroduced in the 119th Congress:
•
•
The Affordable Housing Credit Improvement Act of 2025 (H.R. 2725/S. 1515)
would make a range of changes to the low-income housing tax credit (LIHTC),
the largest federal program that supports the development and rehabilitation of
affordable rental housing for lower-income households. These changes would
include increasing state allocation authority, reducing the bond threshold, and
making a number of changes pertaining to tenant eligibility and credit
determinations for projects. In addition, it would change the program’s name to
the “affordable housing tax credit.” Versions of the Affordable Housing Credit
Improvement Act were also introduced in every previous Congress since the
114th. Some, but not all, of the provisions in this bill were included in the
FY2025 budget reconciliation legislation enacted in July 2025 (see the “HousingRelated Provisions in the FY2025 Budget Reconciliation Law” section).
The Neighborhood Homes Investment Act (H.R. 2854/S. 1686) would create a
tax credit intended to encourage the development or rehabilitation of affordable
homes for ownership in lower-income areas. Versions of this bill have been
introduced in every previous Congress since the 116th.
Selected other legislative proposals or actions related to housing affordability are discussed in
other sections of this report.
The 119th Congress has also held multiple hearings related to housing supply and affordability
(see Appendix B for a list of housing-related hearings in the 119th Congress). These hearings
have covered a range of issues related to housing supply and costs and potential policy options.
Some of the issues examined have included addressing regulatory barriers at all levels of
government and increasing the use of less traditional housing options, such as manufactured
housing and other types of offsite construction.
Selected Administrative Actions
On January 20, 2025, President Trump called on the heads of executive departments and agencies
to pursue actions to address high prices in general, including actions to “lower the cost of housing
and expand housing supply.”19 Agencies have subsequently taken various actions they describe as
intended to address housing affordability, including reviewing various rules and regulations that
may impact housing costs. For example, in July 2025 HUD and USDA published a notice seeking
public comments to inform a review of the analysis in a 2024 final rule that updated energy
efficiency standards for newly constructed housing under certain HUD and USDA programs
pursuant to the Energy Independence and Security Act of 2007 (P.L. 110-140).20 The agencies’
original analysis found that the adoption of the updated standards would not negatively impact
affordability and availability of the affected housing, and they therefore adopted the updated
19 The White House, “Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living
Crisis,” January 20, 2025, https://www.whitehouse.gov/presidential-actions/2025/01/delivering-emergency-price-relieffor-american-families-and-defeating-the-cost-of-living-crisis/.
20 HUD and USDA, “Adoption of Energy Efficiency Standards for New Construction of HUD- and USDA-Financed
Housing; Notice for Comment,” 90 Federal Register 29882-29885, July 7, 2025, https://www.govinfo.gov/content/pkg/
FR-2025-07-07/pdf/2025-12522.pdf.
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standards for newly constructed housing under the covered programs.21 Some stakeholders,
including the National Association of Home Builders, have disagreed with the determination that
the updated standards would not affect housing affordability.22 The effective dates for complying
with these updated standards vary by program, and some have been delayed.23 In November
2025, HUD further delayed the compliance dates for HUD programs where the compliance date
had not yet passed, noting that “the additional delay provided by this notice will provide time for
the agencies to fully consider the public comments received in response to the July 7 Notice for
Comment.”24
In addition, in March 2025 the Secretary of HUD and the Secretary of the U.S. Department of the
Interior announced a Joint Task Force on Federal Land for Housing to identify federal land that
could potentially be used for housing and to streamline procedures and policies related to its
use.25 While federally owned land is not evenly distributed across the United States (most is in the
western states), and not all federally owned land is suitable for housing, some policymakers and
researchers have argued that greater access to federal land for housing construction could play a
role in addressing housing supply and cost concerns in some areas.26 However, using federal land
for housing has been met with opposition by groups that express concern about losing access to
public land or how such land might be used.27 Provisions related to the sale of federal land for
housing were considered, but ultimately not included, in the FY2025 budget reconciliation
legislation enacted in July 2025.28 For more information on considerations related to providing
21 HUD and USDA, “Final Determination: Adoption of Energy Efficiency Standards for New Construction of HUD-
and USDA-Financed Housing,” 89 Federal Register 33112-33182, April 26, 2024, https://www.govinfo.gov/content/
pkg/FR-2024-04-26/pdf/2024-08793.pdf.
22 For a range of perspectives on the agencies’ adoption of these updated standards, see comments submitted on the
original proposal and the 2025 notice at https://www.regulations.gov/docket/HUD-2023-0034.
23 HUD, “Final Determination: Adoption of Energy Efficiency Standards for New Construction of HUD- and USDAFinanced Housing; Extension of HUD Compliance Dates,” 90 Federal Register 11622-, March 10, 2025,
https://www.govinfo.gov/content/pkg/FR-2025-03-10/pdf/2025-03758.pdf; and USDA, “Final Determination:
Adoption of Energy Efficiency Standards for New Construction of HUD- and USDA-Financed Housing; Extension of
USDA Compliance Dates,” 90 Federal Register 14775, April 4, 2025, https://www.govinfo.gov/content/pkg/FR-202504-04/pdf/2025-05864.pdf.
24 HUD, “Final Determination: Adoption of Energy Efficiency Standards for New Construction of HUD- and USDAFinanced Housing; Additional Extension of HUD Compliance Dates,” 90 Federal Register 50750-50751, November
10, 2025.
25 HUD, “HUD Secretary Scott Turner and DOI Secretary Doug Burgum Announce Joint Task Force to Use Federal
Lands for Affordable Housing,” press release, March 16, 2025, https://www.hud.gov/news/hud-no-25-042.
26 For example, see Joint Economic Committee Republicans, The HOUSES Act: Addressing the National Housing
Shortage by Building on Federal Land, August 2022, https://www.jec.senate.gov/public/_cache/files/efdd0c37-af9540cd-9125-e80f8a11504b/the-houses-act—addressing-the-national-housing-shortage-by-building-on-federal-land.pdf;
Edward J. Pinto, Homesteading 2.0: Making Housing Affordable Again, Especially With the Construction of Starter
Homes, American Enterprise Institute, March 28, 2025, https://www.aei.org/articles/homesteading-2-0-makinghousing-affordable-again-especially-with-the-construction-of-starter-homes/; and Andrew Justus, The federal
government owns much of the West – and that’s a housing opportunity, Niskanen Center, December 14, 2022,
https://www.niskanencenter.org/the-federal-government-owns-much-of-west-housing-opportunity/.
27 For example, see letters signed by multiple organizations related to provisions proposed in budget reconciliation,
including https://publicland.org/wp-content/uploads/2025/06/Hunt_Fish_Conservation_Senate-Reconciliation-LandSales-letter-6_6_25.pdf (dated June 6, 2025) and https://nlihc.org/sites/default/files/Public_Lands_Letter_71125.pdf
(dated June 27, 2025).
28 For example, provisions related to the sale of public lands for housing were included in budget reconciliation text
released by the Senate Committee on Energy and Natural Resources in June 2025. See Senate Committee on Energy
and Natural Resources, Energy and Natural Resources Committee Reconciliation Title Section-by-Section Summary, p.
3, https://www.energy.senate.gov/services/files/0D7A13DC-D7DB-42D8-A23D-10852ADC7A85. These provisions
were not included in the enacted law.
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federal land for housing development, see CRS In Focus IF13080, Potential Conveyance of
Federal Land for Housing Development.
Housing and Insurance
Property insurance is often a significant contributor to the cost of housing, and increasing
insurance costs can exacerbate housing affordability challenges across the United States.29 These
cost increases (as well as associated challenges) can affect both single-family and multifamily
housing, and both homeowners and rental property owners.
Mortgage lenders generally require homeowners insurance be in place through the life of a
mortgage, so disruptions in insurance markets can lead to people being unable to obtain a
mortgage to purchase a home. Even when insurance is not required, homeowners typically
purchase it as financial protection for what is most people’s largest asset. Wind, hail, and wildfire
coverage are typically included as covered perils in homeowners insurance sold by private
insurance companies and, as such, are regulated by states rather than the federal government. In
contrast, flood losses are not covered by homeowners insurance, and homeowners and rental
property owners must purchase a separate flood insurance policy, most commonly from the
National Flood Insurance Program (NFIP). Flood insurance is required for federally backed
mortgages in certain high-risk flood zones. (For more on the NFIP, see “The National Flood
Insurance Program” section.)
Over the past few years, insurance consumers in parts of the United States have been
experiencing higher prices and gaps in coverage, sometimes struggling to find insurance that
sufficiently protects against hazards such as wind and wildfire.30 Insurers have even withdrawn
from offering homeowners insurance altogether in areas at high risk, leaving some households
unable to find insurance outside of state-created insurers of last resort.31 Challenges in the
availability of wildfire insurance in California and wind insurance in Florida have received the
most attention, but media reports include accounts of insurers increasing premiums or
withdrawing from homeowners insurance markets in many states.32 If insurers’ withdrawal from
markets leads to the inability of homeowners to obtain insurance and increases uninsured losses,
risk (and financial responsibility) may be shifted to individuals, lenders, taxpayers, or the
29 Emma Waters, Rising Insurance Costs and the Impact on Housing Affordability, Bipartisan Policy Center, June 25,
2024, https://bipartisanpolicy.org/blog/rising-insurance-costs-and-the-impact-on-housing-affordability/.
30 See, for example, USA Facts, Is home insurance getting more expensive?, May 9, 2024, https://usafacts.org/articles/
is-home-insurance-getting-more-expensive/; and Consumer Federation of America, Millions of Consumers Lack Vital
Homeowners Insurance, Resulting in $1.6 Trillion in Unprotected Market Value, press release, March 11, 2024,
https://consumerfed.org/press_release/millions-of-consumers-lack-vital-homeowners-insurance-resulting-in-1-6trillion-in-unprotected-market-value/.
31 For more information, see National Association of Insurance Commissioners, “Fair Access to Insurance
Requirements Plans,” https://content.naic.org/insurance-topics/fair-access-to-insurance-requirements-plans.
32 See, for example, S&P Global, US homeowners insurance rates jump by double digits in 2023, January 25, 2024,
https://www.spglobal.com/market-intelligence/en/news-insights/articles/2024/1/us-homeowners-insurance-rates-jumpby-double-digits-in-2023-80057804; Leslie Kaufman et al., “A Hidden Crisis in US Housing,” Bloomberg, March 5,
2024, https://www.bloomberg.com/features/2024-home-insurance-real-estate-crisis/; Michael J. Coren et al., “Insuring
Your Home Has Never Been Harder. Here’s How To Do It.,” Washington Post, December 16, 2024,
https://www.washingtonpost.com/climate-environment/interactive/2024/home-insurance-climate-change-premiumsstrategies; and Kevin T. Dugan, “L.A. Has Big Plans to Rebuild After the Fires. Good Luck Getting Insurance.,” Wall
Street Journal, March 11, 2025, https://www.wsj.com/real-estate/wildfires-california-insurers-palisades-rebuilding5ad4cae3.
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government. This industry reaction is not new—the NFIP was created in 1968 following
widespread insurer withdrawal from offering coverage for flooding.33
Rising insurance costs and decreasing coverage also affect multifamily rental housing, including
affordable housing.34 Substantial increases in insurance costs add to the costs of housing
development and may make it more difficult for some projects to get built. For existing
multifamily rental properties, substantial increases in insurance costs can pose challenges for
property owners and may lead owners to take actions such as increasing rents or deferring
property maintenance. Rising costs may be particularly challenging for owners of federally
assisted housing properties, which may face restrictions in their ability to increase rent. This
dynamic threatens to constrict the supply of available and affordable rental homes in areas with
large increases in insurance costs.35
Rising prices and reduced availability of property insurance has involved the interplay between
two large-scale factors: (1) increasing losses from natural disasters36 and (2) a macroeconomic
environment marked by rising inflation and interest rates.37 Insured losses from natural disasters
have increased over past decades, with nearly every major peril recording an individual insured
loss event over $10 billion.38 Global insured losses topped $100 billion for the fifth consecutive
year in 2024.39 Increasing losses from natural disasters can be attributed to a combination of
factors, including rapid expansion of population into areas susceptible to natural disasters,
increasing replacement costs, higher reinsurance costs, inadequate building codes, and
climatological and environmental changes in weather patterns and storm intensities.40
Most policies addressing insurance are enacted at the state level, but the scale of recent
withdrawals from the market has increased congressional interest in federal intervention. In the
33 Kristina Garcia, “The Risky Business of Homeowners Insurance,” Penn Today, June 12, 2023,
https://penntoday.upenn.edu/news/risky-business-homeowners-insurance-climate-change-fire.
34 See, for example, Nam D. Pham and Mary Donovan, “Increased Insurance Costs for Affordable Housing Providers,”
NDP Analytics, October 2023, https://www.nmhc.org/globalassets/research—insight/research-reports/insurance/ndpnlha-housing-provider-insurance-costs-report-oct-2023.pdf.
35 Emma Waters, Rising Insurance Costs and the Impact on Housing Affordability, Bipartisan Policy Center, June 25,
2024, https://bipartisanpolicy.org/blog/rising-insurance-costs-and-the-impact-on-housing-affordability/.
36 Munich Re, Natural disasters worldwide: Losses are on the rise as climate change strikes, May 2025,
https://www.munichre.com/en/risks/natural-disasters.html#-1624621007.
37 See CRS Testimony TE10087, The Factors Influencing the High Cost of Insurance for Consumers.
38 Gallagher Re, Natural Catastrophe Report 2024, January 2025, p. 6, https://www.ajg.com/gallagherre/-/media/files/
gallagher/gallagherre/news-and-insights/2025/natural-catastrophe-and-climate-report-2025.pdf.
39 Swiss Re, “Hurricanes, severe thunderstorms and floods drive insured losses above USD 100 billion for 5 th
consecutive year, says Swiss Re Institute,” press release, December 5, 2024, https://www.swissre.com/press-release/
Hurricanes-severe-thunderstorms-and-floods-drive-insured-losses-above-USD-100-billion-for-5th-consecutive-yearsays-Swiss-Re-Institute/f8424512-e46b-4db7-a1b1-ad6034306352.
40 J.P. Morgan, Insurance: Weathering the Storm of Inflation, Climate Change, and Market-Distorting State
Regulation, March 31, 2025, https://www.jpmorgan.com/content/dam/jpm/cib/documents/Weathering_the_storm.pdf.
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119th Congress, hearings have been held41 and legislation introduced, though no direct federal
action has yet been taken.42
Housing-Related Provisions in the FY2025 Budget Reconciliation
Law
The FY2025 budget reconciliation legislation (P.L. 119-21), enacted on July 4, 2025, included
some provisions that have implications for housing. The majority of these provisions were taxrelated, including changes to the LIHTC, extensions and modifications of certain housing-related
tax provisions included in the FY2018 budget reconciliation law (TCJA, P.L. 115-97) (i.e.,
provisions related to the mortgage interest deduction, deductions for state and local taxes, and
Opportunity Zones), and the elimination of several tax credits related to residential energy
efficiency or clean energy. P.L. 119-21 also rescinded unobligated funding from certain programs
funded in FY2022 budget reconciliation legislation sometimes referred to as the Inflation
Reduction Act (IRA, P.L. 117-169) that provided funding for green housing activities. In addition,
it reduced funding for the Consumer Financial Protection Bureau (CFPB), which provides
oversight of providers of an array of consumer financial products and services—including
mortgage lenders and servicers.
Housing Tax Provisions
P.L. 119-21 includes a significant number of tax provisions, many of which are modifications or
extensions of provisions included in the TCJA. Several tax provisions are housing-related,
including some that affect programs that are not specific to housing but can be used for it under
certain circumstances.
Low-Income Housing Tax Credit
The low-income housing tax credit is the largest federal program supporting the development and
rehabilitation of affordable rental housing for lower-income households. Section 70422 of P.L.
119-21 permanently increases states’ LIHTC allocation authority by 12% starting in calendar year
2026. In 2025, states have LIHTC allocation authority equal to $3.00 per person, with a minimum
small-population state allocation of $3,455,000.43 The 12% increase provided by P.L. 119-21,
along with the automatic annual inflation adjustment, will increase state allocation authority in
2026 to $3.416 per person, with a minimum small population state allocation of $3,953,600.44
Additionally, the act reduces the 50% tax-exempt bond financing requirement to 25% for bond
obligations issued starting in calendar year 2026.
41 U.S. Congress, Senate Banking, Housing, and Urban Affairs Committee, Examining Insurance Markets and the Role
of Mitigation Policies, 119th Cong., 1st sess., May 1, 2025, https://www.banking.senate.gov/hearings/examininginsurance-markets-and-the-role-of-mitigation-policies; and U.S. Congress, Senate Homeland Security and
Governmental Affairs Committee, Subcommittee on Disaster Management, District of Columbia, and Census,
Examining the Insurance Industry’s Claims Practices Following Recent Natural Disasters, 119th Cong., 1st sess., May
13, 2025, https://www.hsgac.senate.gov/subcommittees/dmdcc/hearings/examining-the-insurance-industrys-claimspractices-following-recent-natural-disasters/.
42 See, for example, the Wildfire Insurance Coverage Study Act of 2025 (H.R. 550), the Homeowners Defense Act of
2025 (H.R. 857), and the Incorporating National Support for Unprecedented Risks and Emergencies (INSURE) Act (S.
2349).
43 Internal Revenue Service (IRS), Revenue Procedure 2024-40, p. 10, https://www.irs.gov/pub/irs-drop/rp-24-40.pdf.
44 IRS, Revenue Procedure 2025-32, October 9, 2025, https://www.irs.gov/pub/irs-drop/rp-25-32.pdf. Annual LIHTC
allocation authority is indexed for inflation, which is in addition to the 12% increase provided by P.L. 119-21.
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For more information on the LIHTC, see CRS Report RS22389, An Introduction to the LowIncome Housing Tax Credit.
Mortgage Interest Deduction
Section 70108 of P.L. 119-21 makes permanent what had been a temporary change to the
mortgage interest deduction enacted by the TCJA. The TCJA changed the tax treatment of
mortgage interest for tax years 2018 through 2025. For mortgage debt incurred on or before
December 15, 2017, taxpayers may deduct the interest incurred on the first $1 million ($500,000
for married filing separately) of combined mortgage debt. For mortgage debt incurred after
December 15, 2017, the TCJA limited the deduction to the interest on the first $750,000
($375,000 for married filing separately) of mortgage debt. No deduction is allowed for interest
payments made for new or existing home equity debt if such debt is used for purposes unrelated
to the property securing the loan. The act makes permanent the lower mortgage debt thresholds
imposed by the TCJA for new loans incurred after December 15, 2017. It also allows for
mortgage insurance premiums to be considered mortgage interest and therefore deductible
starting in 2026.
For more information on the mortgage interest deduction, see CRS Report R46429, An Economic
Analysis of the Mortgage Interest Deduction.
Deductibility of State and Local Taxes
Section 70120 of P.L. 119-21 increases the limits on the deductibility of state and local taxes
(SALT) (which includes property taxes) from $10,000 to $40,000 through 2029. The deduction
phases out for taxpayers earning more than $500,000 (eventually down to $10,000 for those
earning $600,000 and above). Both the overall limit and the income threshold will increase by 1%
per year through 2029. The overall limit will revert to $10,000 starting in 2030.
For more information on the SALT deduction, see CRS Report R46246, The SALT Cap:
Overview and Analysis.
Opportunity Zones
Section 70421 of P.L. 119-21 makes permanent the Opportunity Zone (OZ) program, which had
been set to expire after 2026. Investments in OZs, including housing, are eligible to receive
preferential tax treatment through the deferral of capital gains and a step-up in basis on capital
gains. The act requires states to reevaluate OZ designation every 10 years.
For more information on OZs, see CRS Report R45152, Tax Incentives for Opportunity Zones.
New Markets Tax Credits
Section 70423 of P.L. 119-21 makes permanent the New Market Tax Credits (NMTC) program,
which supports a variety of types of qualified investments in eligible low-income communities.
Some housing developments can be eligible for NMTC investments, although there are
limitations on its use for housing; for example, while mixed-use projects can be eligible, projects
where 80% or more of gross rental income comes from the rental of housing units are not
eligible.45 The NMTC had been set to expire after 2025.
45 U. S. Department of the Treasury, Community Development Financial Institutions Fund, “Introduction to the New
(continued...)
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For more information on NMTC, see CRS Report RL34402, New Markets Tax Credit: An
Introduction.
Termination of Residential Energy and Clean Energy Tax Credits
P.L. 119-21 also terminates various tax credits for residential energy efficiency or clean energy
usage sooner than they would have ended under prior law. These include the credit for
construction of energy-efficient new homes, the energy efficient home improvement credit, and
the residential clean energy credit.
•
•
•
Credit for Construction of Energy-Efficient New Homes (CCEENH): The
CCEENH may be claimed by builders of single-family homes, manufactured
homes, and multifamily homes attaining the energy efficiency standards set by
either Energy Star or the U.S. Department of Energy’s Zero Energy Ready Home
(ZERH) program. Under prior law, the CCEENH was scheduled to expire at the
end of 2032. Section 70508 of P.L. 119-21 restricts the credit to homes acquired
on or before June 30, 2026.
Energy Efficient Home Improvement Credit (EEHIC): Individuals and
couples may receive an EEHIC for making energy-efficiency upgrades to their
homes. Purchases of energy-efficient appliances installed at homes that are rented
or homes that are owned and used as principal or secondary residences are
eligible for the EEHIC. Upgrades to the insulation, exterior doors, and exterior
windows or skylights of homes owned and used as principal residences are also
eligible. In addition, home energy audits of taxpayers‘ principal residences
(whether owned or rented) are eligible for the credit. Landlords may not receive
the EEHIC.
Under prior law, the EEHIC was scheduled to expire at the end of 2032. The
amendments made by Section 70505 of P.L. 119-21 may be subject to
interpretation. The provision, amending the Internal Revenue Code (IRC), states:
“Section 25C(h) is amended by striking ‘placed in service’ and all that follows
through ‘December 31, 2032’ and inserting ‘placed in service after December 31,
2025’.” While Section 25C(h) of the IRC (26 U.S.C. §25C(h)) contains the words
“placed in service,” it does not contain a reference to the date “December 31,
2032.” Both phrases, however, appear in IRC Section 25C(i), pertaining to
termination. Although the provision references modifying IRC Section 25C(h),
pertaining to product identification number requirements for qualifying energy
property, policymakers may have intended to modify IRC Section 25C(i), and
thereby repeal the EEHIC for property placed in service after December 31,
2025.
Residential Clean Energy Credit (RCEC): The RCEC subsidizes purchases of
renewable energy equipment used at the residences of individuals and couples.
Renters and homeowners (though not landlords) installing solar electric panels,
solar water heaters, small wind energy systems, geothermal heat pumps, and
other renewable energy equipment can receive an RCEC proportional to the costs
of purchasing, assembling, and installing such equipment at domestically located
residences. Under prior law, the RCEC would have been in place through the end
Markets Tax Credit Program,” November 13, 2024, p. 26, https://www.cdfifund.gov/system/files/2025-04/CY_20242025_Introduction_to_the_NMTC_Program.pdf.
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•
of 2034. Section 70506 of P.L. 119-21 terminates the credit for expenditures
made after December 31, 2025; in effect, this repeals the RCEC starting in 2026.
Alternative Fuel Vehicle Refueling Property Credit: Section 70504 of P.L.
119-21 also terminates the alternative fuel vehicle refueling property credit, a tax
credit for electric vehicle (EV) charging equipment and alternative fueling
equipment, for property placed in service after June 30, 2026. While this would
not affect a large subset of homeowners, it would affect homeowners installing
advanced EV charging equipment at their residences.
For more information on tax provisions in P.L. 119-21, see CRS Report R48611, Tax Provisions
in P.L. 119-21, the FY2025 Reconciliation Law.
Rescissions of Unobligated Balances from Programs Funding Green Housing
Activities
In addition to the housing-related tax provisions in P.L. 119-21, there were also some rescissions
of housing-related funding. Section 30002 rescinded an estimated $138 million in unobligated
funding from HUD’s Green and Resilient Retrofit Program (GRRP).46 The IRA had provided
one-time funding of $1 billion for this program, through which HUD offered loans and grants to
owners of certain HUD-assisted multifamily rental properties to help fund energy/water
efficiency and climate resiliency upgrades.
Section 60002 of P.L. 119-21 rescinded an estimated $19 million in unobligated funding from the
Environmental Protection Agency’s (EPA’s) Greenhouse Gas Reduction Fund (GGRF).47 The IRA
had provided one-time funding of $27 billion for the GGRF, through which EPA provided grants
to assist projects that reduce greenhouse gas emissions, with a focus on those that benefit lowincome and disadvantaged communities.48 While not focused on housing specifically, the GGRF
could be used for some activities related to it.
For more information on the GGRF, see CRS In Focus IF12387, EPA’s Greenhouse Gas
Reduction Fund (GGRF).
CFPB Funding
Section 30001 of P.L. 119-21 reduced the funding cap for the CFPB.49 The CFPB provides
oversight of certain housing market participants, including mortgage originators and servicers,
and of other financial market activities.50
CFPB funding is distributed quarterly from the Federal Reserve to the Bureau Fund according to
amounts requested by the CFPB director, subject to an overall cap. Prior to the passage of P.L.
119-21, this funding cap used a statutory formula that capped the budget request for FY2013 at
46 Congressional Budget Office (CBO), Estimated Budgetary Effects of P.L. 119-21, to Provide for Reconciliation
Pursuant to Title II of H. Con. Res. 14, Relative to the Budget Enforcement Baseline for Consideration in the Senate,
cost estimate, July 21, 2025, https://www.cbo.gov/publication/61569. See Title III for estimates related to the GRRP.
47 CBO, Estimated Budgetary Effects of P.L. 119-21, to Provide for Reconciliation Pursuant to Title II of H. Con. Res.
14, Relative to the Budget Enforcement Baseline for Consideration in the Senate. See Title VI for estimates related to
GGRF.
48 For more information on the GGRF, see CRS In Focus IF12387, EPA’s Greenhouse Gas Reduction Fund (GGRF).
49 For more information on the CFPB budget, see CRS Report R48295, The Consumer Financial Protection Bureau
Budget: Background, Trends, and Policy Options.
50 For more information on the CFPB generally, see CRS In Focus IF10031, Introduction to Financial Services: The
Consumer Financial Protection Bureau (CFPB).
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12% of total Federal Reserve FY2009 operating expenses ($4.98 billion), which computed to
$598 million. Each year, this cap is adjusted for inflation. P.L. 119-21 revised the CFPB funding
cap by reducing the 12% figure in current law to 6.5% of Federal Reserve FY2009 operating
expenses. The law left prior and future employment cost index adjustments in place. This change
decreased the funding cap in FY2025 to $446 million, compared to the cap as calculated under
the previous formula ($823 million).
For more on this change, see CRS Insight IN12578, P.L. 119-21, the FY2025 Reconciliation Law,
Provisions Related to CFPB Funding.
Executive Orders and Other Administrative Actions: Implications
for Housing
The start of the 119th Congress coincided with the beginning of the second Trump Administration.
While all new Administrations make personnel and policy changes to align the executive branch
with their priorities, the second Trump administration has issued a record number of executive
orders,51 announced plans for significant downsizing of the federal workforce,52 increased import
tariffs,53 and increased immigration enforcement and reduced entry.54 Many of these actions could
have implications for federal housing policy and programs.
For example, in response to multiple executive orders,55 various federal agencies froze payments
to grantees or contractors, and in some cases terminated contracts and canceled grant awards,
including some awards involving federal housing programs.56 Some of these actions have
prompted lawsuits by affected parties, with plaintiffs often alleging, among other things, that the
freezes exceed agencies’ statutory authority, are contrary to the law, or are arbitrary and
capricious in violation of the Administrative Procedure Act (APA).57
51 See CRS Report R48476, Nationwide Injunctions in the First Hundred Days of the Second Trump Administration.
52 Executive Order 14210, “Implementing the President’s ‘Department of Government Efficiency’ Workforce
Optimization Initiative,” February 11, 2025 (among other things, requiring executive branch agencies “to initiate largescale reductions in force”). See also CRS Insight IN12505, Federal Workforce Downsizing: Voluntary and Involuntary
Mechanisms.
53 See CRS Report R48549, Presidential 2025 Tariff Actions: Timeline and Status.
54 See CRS Legal Sidebar LSB11299, Recent Executive Branch Actions on Immigration (Part 1) and CRS Legal
Sidebar LSB11300, Recent Executive Branch Actions on Immigration (Part 2).
55 See, for example, Executive Order 14154, “Unleashing American Energy,” January 20, 2025; Executive Order
14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” January 20, 2025; Executive
Order 14159, “Protecting the American People Against Invasion,” January 20, 2025; Executive Order 14161,
“Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government,”
January 20, 2025; Executive Order 14162, “Putting America First in International Environmental Agreements,”
January 20, 2025; Executive Order 14169, “Reevaluating and Realigning United States Foreign Aid,” January 20,
2025; and Executive Order 14182, “Enforcing the Hyde Amendment,” January 24, 2025. See also Office of
Management and Budget, M-25-13, Temporary Pause of Agency Grant, Loan, and Other Financial Assistance
Programs, January 27, 2025, https://www.whitehouse.gov/wp-content/uploads/2025/03/M-25-13-Temporary-Pause-toReview-Agency-Grant-Loan-and-Other-Financial-Assistance-Programs.pdf.
56 See, for example, HUD, “HUD Cancels $4 Million in DEI Contracts,” press release, https://www.hud.gov/news/hudno-25-031; Jesse Bedayn, “Trump administration throws hundreds of affordable housing projects into limbo after
contract cuts,” Associated Press, March 7, 2025, https://apnews.com/article/affordable-housing-trump-doge-hudfunding-af0cadf5238f1654d723350cc2e8e0f7; and Jennifer Ludden, “HUD is bracing as DOGE seeks to cut waste,
fraud. Union leaders have a suggestion,” NPR, February 11, 2025, https://www.npr.org/2025/02/11/g-s1-48297/dogehud-trump-funding-cuts-housing-urban-development.
57 See, for example, Woonasquatucket River Watershed Council v. U.S. Department of Agriculture, No. 1:250-cv(continued...)
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In terms of the President’s call for federal agencies “to initiate large-scale reductions in force,”58
HUD Secretary Turner confirmed in a June hearing that he would implement a staffing reduction
of about 2,30059 (out of about 8,000 agency employees60). Additionally, the entire staff of the
Interagency Council on Homelessness has reportedly been put on administrative leave.61 The
implications of these staffing reductions on housing program administration and performance is
unclear. HUD’s Office of Inspector General has indicated it is conducting a review of HUD’s
workforce reductions.62
President Trump has also imposed a number of import tariffs on certain goods and countries.63
Details have been evolving and may continue to change as the Administration engages in
negotiations with trading partners. Some of the tariffs, and related uncertainty around their
ultimate implementation, may affect the cost and availability of various inputs used in housing
construction, including some building materials and finishes (e.g., appliances).64
The Trump Administration has also taken a number of actions to reduce both legal and
unauthorized immigration through a combination of entry restrictions and domestic enforcement
actions, which could have implications for housing. For example, it could decrease housing costs
and increase availability in areas where the reduction in the immigrant population decreases the
overall demand for housing. Conversely, it could reduce the supply of new housing and increase
its cost, given that immigrants have historically made up a significant share of the construction
labor force.65
Federal Housing Assistance Programs
Some issues being considered by the 119th Congress involve housing assistance programs
administered by HUD or USDA. These include appropriations for federal housing assistance
programs and potential reauthorizations of, or reforms to, two HUD block grant programs, the
00097 (D. R.I. 2025) (APA challenge involving HUD’s GRRP, which was funded under the IRA). More generally, see
CRS Report R48600, Trump v. CASA, Inc. and Nationwide Injunctions During the Second Trump Administration.
58 Executive Order 14210, “Implementing the President’s ‘Department of Government Efficiency’ Workforce
Optimization Initiative,” February 11, 2025.
59 U.S. Congress, Senate Appropriations Committee, Department of the Interior, Environment, and Related Agencies
Subcommittee, A Review of the President’s Fiscal Year 2026 Budget Request for the Department of Housing and
Urban Development, 119th Cong., 1st sess., June 11, 2025, https://www.appropriations.senate.gov/hearings/a-review-ofthe-presidents-fiscal-year-2026-budget-request-for-the-department-of-housing-and-urban-development (approx. minute
58).
60 See HUD FY2025 Budget Justifications, https://archives.hud.gov/budget/fy25/2025_FTE_Summary.pdf.
61 Kriston Capps, “DOGE Places Entire Staff of Federal Homelessness Agency on Leave,” Bloomberg, April 16, 2025,
https://www.bloomberg.com/news/articles/2025-04-16/doge-places-entire-staff-of-federal-homelessness-agency-onleave.
62
HUD Office of Inspector General, HUD’s Workforce Reduction Review, May 2025, https://www.hudoig.gov/library/
ongoing-work/huds-workforce-reductions-review.
63 See CRS Report R48549, Presidential 2025 Tariff Actions: Timeline and Status.
64 Paul Emrath, “Despite Exemptions and Delays, Tariffs are Already Affecting Builders,” National Association of
Home Builders, April 15, 2025, https://eyeonhousing.org/2025/04/despite-exemptions-and-delays-tariffs-are-alreadyaffecting-builders/; and National Multifamily Housing Council, “Assessing the Impact of New Policy Proposals on
Housing,” April 1, 2025, https://www.nmhc.org/news/research-corner/2025/assessing-the-impact-of-new-policyproposals-on-housing/.
65 The National Association of Homebuilders cites Census data showing that 31% of all workers in the construction
trade are immigrants (both lawfully present and undocumented); see https://www.nahb.org/advocacy/industry-issues/
labor-and-employment/immigration-reform-is-key-to-building-a-skilled-workforce.
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Community Development Block Grant (CDBG) and the HOME Investment Partnerships Program
(HOME).
Appropriations
Nearly all funding for federal housing assistance programs comes from annual discretionary
appropriations. The largest share of those appropriations for housing programs is devoted to
covering the costs of maintaining federal rental assistance programs, which provide subsidies to
the lowest income tenants allowing them generally to pay 30% or less of their incomes toward
their housing costs.
More than half of HUD’s appropriations each year are devoted to maintaining assistance for the
approximately 4.5 million households served by the Section 8 Housing Choice Voucher (HCV)
and Section 8 Project-Based Rental Assistance programs. Funding needs for the HCV program
and project-based rental assistance have been increasing, because of increases in the number of
people served and the increased costs of maintaining assistance for households that are currently
served by the programs due to rents increasing faster than their incomes.
Despite the large share of total HUD funding that these rental assistance programs command,
their combined funding levels permit them to serve an estimated one in four eligible families,
which results in waiting lists for assistance in most communities.66 A similar dynamic plays out in
USDA’s Rural Housing Service (RHS) budget. Demand for housing assistance exceeds the supply
of subsidies, yet the largest share of RHS spending for rental housing programs is devoted to
maintaining rental assistance for current residents.67
In a budget environment where there is a desire to reduce federal spending, pressure to provide
increased funding to maintain current services for existing rental assistance programs competes
with pressure from states, localities, and advocates to maintain or increase funding for other
popular programs, such as HUD’s CDBG and HOME programs, grants for homelessness
assistance, and funding for Native American housing programs.
One way this tension was addressed in the 118th Congress for FY2023 and FY2024 and by the
119th Congress in the FY2025 full-year continuing resolution was through the use of emergencydesignated appropriations for regular program operations. This use of emergency-designated
appropriations effectively funds a portion of HUD’s rental assistance renewal needs outside of the
standard budget constraints imposed by discretionary spending limits. (For more information, see
“Emergency-Designated Funding for Rental Assistance Renewals,” in CRS Report R48253,
Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations
for FY2025.
FY2026 Request and Rental Assistance Block Grant Proposal
For FY2026, President Trump’s budget proposed $43.5 billion in gross discretionary
appropriations for HUD, which is about $45.6 billion (51%) less than the $89 billion in
discretionary appropriations provided in FY2025.68 The reductions would come from eliminating
funding for a number of large HUD grant programs—including HOME and CDBG—as well as
66 See CRS In Focus IF12824, Federal Rental Assistance and Affordability.
67 The bulk of the RHS budget for rental housing is devoted to renewing existing Section 521 rental assistance contracts
in Section 515 and Section 514/516 rental housing properties. For more information about USDA’s rural housing
programs, see CRS Report RL31837, An Overview of USDA Rural Development Programs.
68 See the President’s budget documents at https://www.whitehouse.gov/omb/information-resources/budget/thepresidents-fy-2026-discretionary-budget-request/.
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eliminating funding for HUD’s existing rental assistance subsidy programs. Instead of funding the
Public Housing, Section 8 HCV, Section 8 Project-Based Rental Assistance, Section 202 Housing
for the Elderly, and Section 811 Housing for Persons with Disabilities programs, the budget
would fund a new state block grant. The amount of funding requested for the proposed State
Rental Assistance Program for FY2026 ($36.2 billion) is 42% lower than the amount allocated to
federal subsidies for rental assistance in FY2025 ($62.9 billion, combined).69
According to HUD’s Congressional Budget Justification (CJ),70 states would receive allocations
through the new State Rental Assistance Program based on a formula that would take into account
data on rental assistance in prior years. The CJ states that the intent behind this proposal is to
allow states to design rental assistance programs that best meet their needs and to prioritize the
housing needs of low-income elderly and disabled households. Under this proposal, rental
assistance to nonelderly, nondisabled households would be capped at two years.
The President’s budget documents note that this proposal would require enactment of authorizing
legislation.71 As of the cover date of this report, no further details or draft authorizing legislation
has been released. Neither the House nor the Senate Appropriations Committee-reported FY2026
HUD funding bills (H.R. 4552 and S. 2465, respectively) included the President’s rental
assistance consolidation proposal.
FY2026 Funding Lapse and Government Shutdown
Because no discretionary appropriations for FY2026 had been enacted at the end of FY2025, on
October 1, 2025, a funding lapse triggered a government shutdown that lasted until enactment of
the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and
Veterans Affairs, and Extensions Act, 2026 (P.L. 119-37) on November 11, 2025.72 Some housing
programs and activities were deemed excepted and thus were continued (such as certain federally
insured loan loss mitigation activities), some had sufficient funding from prior-year funding bills
to continue operations (such as federal rental assistance programs), and others were suspended
(such as issuance of most new grants).73
During the shutdown, authorization for the National Flood Insurance Program lapsed, so the
program stopped issuance of new policies and renewals.74 P.L. 119-37 reauthorized the program
through January 30, 2026. For more information, see the “The National Flood Insurance Program
(NFIP)” section.
Proposed Changes to HOME and CDBG
Two HUD block grant programs, HOME and CDBG, provide formula grants to states and certain
local governments that can be used for a variety of eligible activities. HOME can be used for a
69 CRS calculations based on the President’s budget documents.
70 See the “State Rental Assistance Program” section of HUD’s FY2026 Congressional Budget Justification at
https://www.hud.gov/sites/dfiles/CFO/documents/2026_CJ_Program_SRAP.pdf.
71 See the “State Rental Assistance Program” section of HUD’s FY2026 Congressional Budget Justification, p. 2-1.
72 For more information about government shutdowns, see CRS Report R47693, Government Shutdowns and Executive
Branch Operations: Frequently Asked Questions (FAQ).
73 See CRS Report R47693, Government Shutdowns and Executive Branch Operations: Frequently Asked Questions
(FAQ). For a detailed discussion of the applicability to specific programs and activities, see the agency shutdown plans
issued by HUD and USDA, available at https://www.hud.gov/sites/dfiles/PA/documents/HUD-Lapse-Plan.pdf and
https://www.usda.gov/sites/default/files/documents/fy2026-usda-lapse-plan.pdf.
74 For more information, see CRS Insight IN10835, What Happens If the National Flood Insurance Program (NFIP)
Lapses?
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range of affordable housing activities that benefit low-income households, including new
construction, rehabilitation, and acquisition of rental housing and housing for homeownership, as
well as tenant-based rental assistance. CDBG can be used for a wider range of community
development activities that primarily benefit low-income households, including some affordable
housing activities such as rehabilitation, conversion, and lead-based paint abatement. In general,
use of CDBG funds for new housing construction is prohibited, except when carried out by
qualified nonprofits as part of a larger project.
While there have been some legislative and regulatory changes over time, CDBG and HOME
have not been reauthorized by Congress since 1992.75 In April 2025, the Chair and Ranking
Member of the House Financial Services Subcommittee on Housing and Insurance released a
request for information regarding HOME and CDBG in furtherance of legislation to update and
reform both programs.76
HOME Investment Partnerships Program
In July 2025, the House Financial Services Committee’s Subcommittee on Housing and Insurance
held a hearing that focused on the HOME program and on a discussion draft of a bill to make
changes to the program.77 The hearing touched on several topics related to HOME, including
environmental review requirements, Build America Buy America requirements, Davis-Bacon
prevailing wage requirements, Section 3 contracting requirements, and appropriations. In October
2025, the Chair and Ranking Member of the subcommittee introduced the HOME Reform Act of
2025 (H.R. 5878).78
Provisions related to HOME are also included in the ROAD to Housing Act (S. 2651) reported by
the Senate Banking Committee and the version of that bill subsequently included in the Senatepassed NDAA (S. 2296). Specifically, Section 502 of S. 2651 and Section 5502 of Division I of S.
2296 would reauthorize HOME and make program revisions.
H.R. 5878 and the ROAD to Housing Act of 2025 (both as reported by the Senate Banking
Committee and as included in the Senate-passed version of the NDAA) include many similar
provisions related to HOME. Both bills propose the elimination of a 24-month commitment
deadline for HOME grantees, and would allow grantees to use funds reserved for Community
Housing Development Organizations (CHDOs) for other eligible activities after 24 months. The
two bills also waive income requirements for HOME-assisted housing for homeownership in the
case of members of the military, and waive resale restrictions for such housing in the case of
inheritances. Both bills also modify environmental review requirements and include Community
Land Trusts as a mechanism to maintain housing affordability, but differ in the details. Each bill
also includes some provisions not included in the other. For example, H.R. 5878 proposes several
program changes to relax affordability requirements for housing for homeownership, expand
eligible uses for HOME dollars for jurisdictions that do not receive direct assistance under
75 Both programs were reauthorized as part of the Housing and Community Development Act of 1992 (P.L. 102-550)
.
76 House Committee on Financial Services, Housing and Insurance Subcommittee, “Congressmen Flood & Cleaver
Kick Off Public Input Process for HOME and CDBG Reauthorization,” press release, April 7, 2025,
https://flood.house.gov/media/press-releases/congressmen-flood-cleaver-kick-public-input-process-home-and-cdbg.
77 U.S. Congress, House Financial Services Committee, Housing and Insurance Subcommittee, HOME 2.0: Modern
Solutions to the Housing Shortage, 119th Cong., 1st sess., July 16, 2025, https://financialservices.house.gov/calendar/
eventsingle.aspx?EventID=410787.
78 Office of Congressman Mike Flood, “Housing & Insurance Chair Flood and Ranking Member Cleaver Introduce
Bipartisan Legislation Modernizing HOME Program,” press release, October 31, 2025, https://flood.house.gov/media/
press-releases/housing-insurance-chair-flood-and-ranking-member-cleaver-introduce-bipartisan.
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CDBG, and exempt certain HOME-assisted housing projects from regulations such as Buy
America Preferences and Section 3 contracting requirements. The ROAD to Housing Act of
2025, by contrast, proposes to reauthorize the program, increase the percentage of funds that
grantees may use for administrative costs, clarify how the purchase price of housing for
homeownership is defined, and lower requirements for organizations to qualify as CHDOs,
among other provisions.
Several other policy issues regarding the HOME program were addressed in a January 2025 final
rule.79 The rule was originally scheduled to go into effect on February 5, 2025, but the effective
date was subsequently delayed until April 20, 2025, with certain provisions further delayed until
October 30, 2025.80 Section 502 of S. 2651 would codify some of these regulatory changes,
including reduced requirements for “small-scale housing” (defined as one-to-four-unit rental
housing projects). The 2025 final rule and the ROAD to Housing Act also include similar, but
distinct, changes to relax the requirements for organizations to qualify as Community Housing
Development Organizations.
Community Development Block Grant
Potential reforms to the CDBG program have been of perennial congressional interest since its
inception in the mid-1970s. As noted previously, in the 119th Congress the Chair and Ranking
Member of the Subcommittee of the House Committee on Financial Services with jurisdiction
over CDBG have indicated intent and sought public input on potential legislation that would
reauthorize and likely reform the program. Alternatively, some Members of the 119th Congress
introduced the Repeal Community Development Block Grants Act of 2025 (H.R. 1133), which
would eliminate the program.
In recent years, some Members have introduced bills that would establish (or would have
established) a range of reforms to CDBG. These have included modifications to the cap on
expenditures for public service activities,81 adjustments to the low- and moderate-income
determination process for certain populations,82 and changes to the program’s formula allocation
methodology,83 among other proposals. Additionally, at the direction of Congress,84 HUD’s Office
of Policy Development and Research (PD&R) has examined the efficacy of the CDBG formula
process.85 PD&R has recommended multiple methodological and administrative adjustments to
address observed inefficiencies in the current formula’s ability to target program grantee
allocations based on community development need, as defined by HUD.86 The PD&R report also
79 HUD, “HOME Investment Partnerships Program: Program Updates and Streamlining,” 90 Federal Register 746-895,
January 6, 2025.
80 For more details, see CRS Report R48422, HOME Program 2025 Final Rule: In Brief.
81 For examples, see the Expand Emergency Housing Act (H.R. 5436) in the 118th Congress and the Public Service
Flexibility Act of 2013 (H.R. 1758/S. 855) in the 113th Congress.
82 For example, see the Disabled Veterans Housing Support Act (H.R. 224/S. 1714) in the 119th Congress.
83 For examples, see the Community Development Block Grant Equity Act of 2024 (H.R. 8583) in the 118th Congress
and the CDBG Modernization Act of 2022 (H.R. 7868) in the 117th Congress.
84 U.S. Congress, House Appropriations Committee, Departments of Transportation, and Housing and Urban
Development, and Related Agencies Appropriations Bill, 2022, 117th Cong., 1st sess., July 20, 2021, H.Rept. 117-99
(Washington, DC: GPO, 2021), p. 130.
85 HUD PD&R, Evaluation of the CDBG Formula, November 2023, https://www.huduser.gov/portal//portal/sites/
default/files/pdf/An-Evaluation-of-the-CDBG-Formulas-Targeting-to-Community-Development-Need-2023.pdf.
86 HUD PD&R, Evaluation of the CDBG Formula, pp. 9-51,.
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briefly discusses potential refinements to the process for distribution of CDBG funds to insular
areas (American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands).87
Separately, in January 2024 HUD published a proposed rule in the Federal Register that sought to
modify aspects of the HUD Consolidated Plan process, adjust timely expenditure requirements to
enable large-scale community development projects, and institute certain programmatic
flexibilities to encourage the use of CDBG funds for economic development activities in low- and
moderate-income communities.88 Some scholars have suggested that CDBG investments in
economic development activities may be ineffective in facilitating job creation, and in some cases
could provide a disproportionate benefit to a small group of private businesses.89 That rule has not
been finalized as of the cover date of this report.
In addition to these potential reforms, some national community development organizations have
called for changes related to program data accessibility, new housing construction activity
eligibility, multi-jurisdictional project eligibility, technical assistance and capacity building
resources, and targeted assistance for rural communities.90 There have also been legislative
proposals to formally authorize the CDBG-Disaster Recovery (CDBG-DR) program (as discussed
further in the “CDBG-DR” section).
Funding for HOME and CDBG
Congress has long considered and debated the appropriate funding levels for these block grants as
part of broader discussion on program administration and outcomes. For example, in recent years,
•
•
•
several pieces of legislation in the 118th Congress proposed additional
appropriations to the HOME program, or proposed authorizing appropriations to
the HOME program above typical funding levels;91
HUD has called for an amended funding distribution process for CDBG “to
optimize effect” in the communities with the highest levels of need, citing
increases in the number of grantees and relatively stable funding levels (in
nominal dollars) since the program’s inception;92 and
the President’s FY2026 budget request proposed to eliminate funding for both
HOME and CDBG (as discussed in the “Appropriations” section of this report),
maintaining that state and local governments are better positioned to address their
communities’ housing needs than the federal government.93 Similar cuts were
87 HUD PD&R, Evaluation of the CDBG Formula, p. 52.
88 HUD, “Submission for Community Development Block Grant Program, Consolidated Plans, and Indian Community
Development Block Grant Program Changes,” 89 Federal Register 1746-1786, January 10, 2024.
89 U.S. Congress, House Financial Services Committee, Housing and Insurance Subcommittee, Flexible Federal
Funding: Examining the Community Development Block Grant Program and Its Impact on Addressing Local
Challenges, 117th Cong., 1st sess., June 16, 2021, 117-31 (Washington, DC: GPO, 2021), p. 11.
90
Vicki Watson et al., “Practitioner Perspective on Community Development Block Grants Past and Future,”
Cityscape, vol. 26, no. 3 (2024), pp. 19-23.
91 For examples, see the Housing Crisis Response Act of 2023 (H.R. 4233), the Housing for All Act of 2023 (H.R.
5254), the DASH Act (H.R. 6970/S. 680), the Community Housing Act of 2024 (H.R. 7325), the American Housing
and Economic Mobility Act of 2024 (H.R. 9245/S. 4824), and the HOME Investment Partnerships Reauthorization and
Improvement Act of 2024 (H.R. 7075/S. 3793).
92 Greg Miller and Todd Richardson, An Evaluation of the CDBG Formula’s Targeting to Community Development
Need 2023 (Hereinafter, Evaluation of the CDBG Formula), HUD PD&R, November 2023, https://www.huduser.gov/
portal//portal/sites/default/files/pdf/An-Evaluation-of-the-CDBG-Formulas-Targeting-to-Community-DevelopmentNeed-2023.pdf. Also see CRS Insight IN12426, Trends in CDBG Program Funding and Grantee Participation.
93 HUD, FY2026 Congressional Budget Justifications, pp. 14-1 and 16-1, https://www.hud.gov/stat/cfo/cj-fy26.
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proposed in the first Trump Administration’s budget requests but were not
adopted in previous appropriations laws.
Homelessness
According to HUD point-in-time (PIT) count data, the number of people experiencing
homelessness in 2024 reached its highest level since 2007.94 The PIT count, overseen by HUD
and administered at the state and local levels, is perhaps the most consistent and comprehensive
measure of people experiencing homelessness. It is meant to capture the number of people
experiencing unsheltered homelessness (i.e., living in places not meant for human habitation) and
sheltered homelessness (i.e., living in emergency shelter or transitional housing) on one night in
January each year.95 The number of people experiencing homelessness as measured in the 2024
PIT count was 771,480, an increase of 18% compared to 2023; in 2007, the PIT count was
647,258.96
Both the unsheltered and sheltered populations increased in the 2024 PIT count compared to
recent years. The number of people experiencing unsheltered homelessness began gradually
increasing each year from a low of 173,268 in 2015 to 274,224 in 2024, an increase of 58% and
the highest number captured in HUD reporting (exceeding 2023, when 256,610 people were
unsheltered).97 The number of people experiencing sheltered homelessness in 2024 was 497,256,
an increase of 25% from 2023, and exceeding the previous high from 2010 when 403,543 people
were living in shelter.98
Prior to the 2023 PIT count, which also saw increases in homelessness, the count had remained
relatively stable from 2013 through 2022 despite growing housing affordability challenges (see
the “Housing Costs” section).99 HUD, in the 2024 Annual Homelessness Assessment Report
(AHAR) to Congress, noted factors that could contribute to growing numbers of people
experiencing homelessness, including, but not limited to, housing affordability challenges, the
end of pandemic-related homelessness prevention programs, displacement due to natural
disasters, and increased immigration.100
In the 119th Congress, the ROAD to Housing Act (S. 2651) includes provisions related to HUD’s
Homeless Assistance Grants, which provide housing and services for people experiencing
homelessness. (These provisions are also included in the version of the ROAD to Housing Act
that was included in Division I of the Senate-passed NDAA [S. 2296].) For example, the bill
94 HUD, The 2024 Annual Homelessness Assessment Report (AHAR) to Congress, December 2024,
https://www.huduser.gov/portal/sites/default/files/pdf/2024-AHAR-Part-1.pdf (hereinafter, “2024 AHAR”).
95 People included in the PIT count are “homeless” as defined at 42 U.S.C. §11302. However, the PIT count does not
include people considered homeless under two subcomponents of the definition: those who will imminently lose their
housing or families with children and youth who may be considered homeless under other federal laws (Subsections
(a)(5) and (a)(6) of 42 U.S.C. §11302).
96 HUD notes 2007 as the year PIT count reporting began. See HUD, The 2023 Annual Homelessness Assessment
Report (AHAR) to Congress, December 2023, p. 4, https://www.huduser.gov/portal/sites/default/files/pdf/2023-AHARPart-1.pdf. PIT counts also took place in 2005 and 2006. The reports can be found at https://www.huduser.gov/portal/
datasets/ahar.html. But while PIT count data from 2007 to 2014 were adjusted with the release of the 2015 PIT count,
data from the earlier reports were not adjusted. See HUD, The 2015 Annual Homelessness Assessment Report (AHAR)
to Congress, November 2015, p. 8, https://www.huduser.gov/portal/sites/default/files/pdf/2015-AHAR-Part-1.pdf.
97 2024 AHAR, p. 2.
98 2024 AHAR, p. 2.
99 Between 2013 and 2022, the overall PIT count did not increase or decrease by more than 3% from one year to the
next.
100 2024 AHAR, p. 3.
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would create additional grantee flexibilities in the Continuum of Care program, and would
provide authority for the HUD and U.S. Department of Health and Human Services (HHS)
Secretaries regarding research and collaboration on housing and health, including housing-related
supportive services. Further, an Executive Order released on July 24, 2025, would, among other
provisions, direct the HUD and HHS Secretaries to prioritize certain interventions in their grant
programs that serve people experiencing homelessness.101
For more information, see CRS In Focus IF12985, Homelessness.
Homeownership and Housing Finance
Some issues being considered by the 119th Congress involve mortgage finance. These include
potential actions related to the status of Fannie Mae and Freddie Mac and the consideration, and
ultimate enactment, of legislation to establish a partial claim loss mitigation option for mortgages
guaranteed by VA.
Status of Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac, government-sponsored enterprises collectively referred to as the
Enterprises, were chartered by Congress to provide liquidity for the single-family and
multifamily mortgage markets. After purchasing mortgages from originators, the Enterprises
guarantee the default risk associated with those mortgages. The Enterprises subsequently issue
mortgage-backed securities (MBSs) linked to the performance of those underlying mortgages.102
Investors who purchase the MBSs are guaranteed to have their initial principal investment
returned, but they assume the risk that borrowers may choose to repay their mortgages ahead of
schedule (e.g., by refinancing or selling the home), known as prepayment risk. The Enterprises
play a large role in the mortgage market, backing over half of outstanding single-family
mortgages.103 The Federal Housing Finance Agency (FHFA), an independent federal government
agency created by the Housing and Economic Recovery Act of 2008 (HERA, P.L. 110-289),
regulates the Enterprises for prudential safety and soundness as well as to ensure that they meet
their affordable housing mission goals.
In September 2008, during the financial crisis and accompanying rise in mortgage defaults and
foreclosures, the Enterprises experienced losses that exceeded their statutory minimum capital
requirement levels due to a high rate of mortgage defaults. The Enterprises subsequently agreed
to be placed under conservatorship by FHFA, which now has the powers of management, boards,
and shareholders.104
Concurrently with being placed under conservatorship, the U.S. Treasury provided financial
support to the Enterprises through senior preferred stock purchase agreements (PSPAs), which are
indefinite in duration, and stipulate that the Enterprises must pay dividends to Treasury rather
than private shareholders while they are under conservatorship. In exchange for this funding
commitment, Treasury immediately received $1 billion of senior preferred stock in each
101 Executive Order 14321, “Ending Crime and Disorder on America’s Streets,” 90 Federal Register 35817, July 24,
2025.
102 In comparison to 30-year fixed rate mortgages, the Enterprises’ MBS issuances have shorter (e.g., 10-year)
maturities, thus making them relatively less interest rate sensitive, more liquid, and more attractive for investors to
hold.
103 FHFA, National Mortgage Database, Outstanding Residential Mortgage Statistics Dashboard, https://www.fhfa.gov/
data/dashboard/nmdb-outstanding-residential-mortgage-statistics.
104 For more information, see CRS Report R46746, Fannie Mae and Freddie Mac: Recent Administrative
Developments.
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Enterprise. Treasury also received long-term options (called warrants) for the purchase of 79.9%
of the common stock of each Enterprise at a nominal cost.105 Since entering conservatorship, the
PSPAs have been amended numerous times in response to changing financial circumstances as
well as to minimize possible taxpayer losses. On January 14, 2021, FHFA and Treasury amended
the PSPAs’ stipulations to allow the Enterprises to retain their earnings for the purpose of
accumulating capital reserves in preparation for eventual release from conservatorship.106
As conservator, FHFA has focused primarily on managing the Enterprises’ liquidity, operational,
and credit risks. It has directed the Enterprises to standardize numerous processes to foster greater
liquidity in the market for their MBSs, and to share with the private sector more of the credit risks
linked to their single-family mortgage purchases.107 Furthermore, HERA gave FHFA the authority
to increase capital standards above the statutory minimum as necessary. In December 2020, FHFA
finalized a rule establishing risk-based and leverage capital requirements for the Enterprises
effective on February 16, 2021.108 The capitalization requirements, which would be in place when
the Enterprises exit conservatorship, are designed to increase their resiliency to a severe financial
downturn.109
Past Congresses have considered comprehensive legislation to reform the housing finance system
and resolve the Enterprises’ conservatorship—for example, in the 113th Congress housing finance
reform bills were reported out of committee in both the House and Senate110—but no such
legislation has been enacted. In recent years, there has also been interest among policymakers in
an administrative release from conservatorship.111 The Trump Administration has expressed
interest in returning the Enterprises back to their status as publicly traded firms.112 When
considering any release from conservatorship, policymakers may wish to consider whether the
105 The warrants may be exercised in whole or in part at any time on or before September 7, 2028.
106 FHFA, “FHFA and Treasury Allow Fannie Mae and Freddie Mac to Continue to Retain Earnings,” press release,
January 14, 2021, https://www.fhfa.gov/news/news-release/fhfa-and-treasury-allow-fannie-mae-and-freddie-mac-tocontinue-to-retain-earnings.
107 For more information on these initiatives, see CRS Report R46746, Fannie Mae and Freddie Mac: Recent
Administrative Developments.
108 FHFA, “Enterprise Regulatory Capital Framework,” 85 Federal Register 243, December 17, 2020. The PSPAs were
modified on January 14, 2021, to facilitate the Enterprises’ ability to accumulate the necessary reserves to satisfy the
2020 capital rule’s prudential requirements for routine mortgage purchases. See FHFA, “FHFA and Treasury Allow
Fannie Mae and Freddie Mac to Continue to Retain Earnings,” press release, January 14, 2021, https://www.fhfa.gov/
Media/PublicAffairs/Pages/FHFA-and-Treasury-Allow-Fannie-Mae-and-Freddie-Mac-to-Continue-to-RetainEarnings.aspx.
109 If, for example, a sudden and significantly sharp decline in house prices generated widespread underwater
mortgages (held in MBS trusts and in their portfolios), the Enterprises’ capital buffers could be insufficient to allow
them to continue safe and sound operations. A mortgage is underwater when the home value declines far below the
amount of the outstanding loan balance, providing the borrower with the financial incentive to default. See Neil Bhutta
et al., The Depth of Negative Equity and Mortgage Default Decisions, Board of Governors of the Federal Reserve
System, May 2010, http://www.federalreserve.gov/pubs/feds/2010/201035/201035pap.pdf.
110 For more information on these bills in the 113th Congress, see archived CRS Report R43219, Selected Legislative
Proposals to Reform the Housing Finance System. For additional discussion of these and other legislative housing
finance reform proposals and proposals from other entities, see U.S. Government Accountability Office (GAO),
Housing Finance: Prolonged Conservatorships of Fannie Mae and Freddie Mac Prompt Need for Reform, GAO-19239, January 2019, https://www.gao.gov/assets/gao-19-239.pdf.
111 See, for example, Congressional Budget Office (CBO), Effects of Recapitalizing Fannie Mae and Freddie Mac
Through Administrative Actions, August 2020, https://www.cbo.gov/publication/56511.
112 Victoria Guida, “Trump floats sale of government-controlled housing finance giants,” Politico, May 21, 2025,
https://www.politico.com/news/2025/05/21/trump-fannie-freddie-housing-finance-00364284; Katherine Hapgood and
Sam Sutton, “Trump to consider Fannie and Freddie public offerings this year,” Politico, August 8, 2025,
https://www.politico.com/news/2025/08/08/fannie-mae-freddie-mac-public-offerings-trump-00499944.
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Enterprises’ capitalization levels are sufficient and, if so, whether they can be released without
congressional action. In addition, any release from conservatorship would involve a number of
policy questions, including, but not limited to, whether the federal government would provide an
implicit or explicit guarantee on the Enterprises’ obligations and the extent to which some
initiatives that were begun during conservatorship would continue. Potential implications for the
mortgage market and borrowers would depend on the details of any release.
Loss Mitigation Options for VA Home Loans
Legislation to create a statutory Partial Claim Program as a loss mitigation option for VA
guaranteed loans was enacted in the 119th Congress as the VA Home Loan Program Reform Act
(P.L. 119-31). It was passed by the House on May 19, 2025, by the Senate on July 16, 2025, and
signed into law on July 30, 2025. Partial claim programs authorize federal agencies administering
loan insurance programs to purchase and service a portion of a borrower’s outstanding debt as a
second lien on the property as a way to resolve a delinquency. Partial claim programs do not
require that the second lien be paid off until the end of the original loan’s term. Prior to enactment
of P.L. 119-31, statutes governing both FHA- and USDA-insured loan programs authorized
partial claim programs, but the VA guaranteed loan statute did not.113
VA’s Partial Claim Program, as enacted in P.L. 119-31, permits the VA Secretary to purchase up to
30% of the unpaid principal balance of a loan if nonpayment occurred between March 1, 2020,
and May 1, 2025, and up to 25% in other cases. Only one partial claim can be made per loan
except in cases of nonpayment occurring during or 120 days after a natural disaster declared
under the Stafford Act. Unlike the FHA and USDA programs, which are permanent, VA’s ability
to enter into new partial claims is scheduled to end five years after enactment of P.L. 119-31.
VA loss mitigation options have undergone changes in recent years. During the COVID-19
pandemic, some borrowers faced difficulty paying their mortgages due to illness, loss of
employment, or other factors. Congressional and agency actions suspended foreclosures on
federally backed single-family mortgages, including VA loans; VA’s foreclosure moratorium
extended through June 30, 2021.114 Congressional and agency actions also instituted mortgage
forbearance policies that allowed COVID-19-affected borrowers to miss mortgage payments for a
period of time (amounts missed during a forbearance period must be paid back at a later date).115
To assist borrowers who may have accumulated arrears during this time through forbearance or
delinquency, VA enacted a partial claim payment program through regulation, citing existing
statutory authority and the emergency circumstances of the pandemic.116 The partial claim
113 See 42 U.S.C. §1715u(b) and 42 U.S.C. §1472(h)(14) for FHA and USDA, respectively.
114 The CARES Act (P.L. 116-136) suspended foreclosures on federally insured single-family mortgages, including VA
loans, for 60 days beginning March 18, 2020. After the CARES Act foreclosure moratorium expired, federal agencies,
including VA, extended their foreclosure moratoriums administratively. The final VA extension lasted through June 30,
2021. VA, Loan Circular 26-21-05, Extended Foreclosure and Eviction Relief for Borrowers Affected by COVID-19,
February 16, 2021, https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_21_05.pdf.
115 The CARES Act allowed borrowers with federally backed mortgages to request up to 360 days of forbearance due
to a COVID-related hardship. VA allowed borrowers to request a COVID-19 forbearance through May 31, 2023. VA,
Loan Circular 26-23-08, Forbearance Timeframe Extension for Borrowers Affected by COVID-19, April 21, 2023,
https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-23-08.pdf.
116 The proposed rule stated that “unlike FHA and USDA, VA has never had explicit authority to establish a partial
claim option. To help veterans recover from the financial hardships posed by the COVID-19 national emergency, VA
looked to its loan refund authority in 38 U.S.C. §3732 and the broad powers authorized under 38 U.S.C. §3720. When
read together, the text of these two sections authorizes VA to establish the COVID-VAPCP as an emergency measure.”
VA, “Loan Guaranty: COVID-19 Veterans Assistance Partial Claim Payment Program,” 85 Federal Register 79146,
(continued...)
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payment program was in place from July 27, 2021, to October 28, 2022.117 VA instituted another
loss mitigation program, from May 31, 2024, to May 1, 2025, called the VA Servicing Purchase
Program (VASP). Through VASP, VA purchased defaulted guaranteed loans and serviced them as
part of its direct loan portfolio. Since the end of VASP, no interventions similar to either VASP or
the regulatory partial claim payment program were available to veterans who defaulted on their
guaranteed loans until enactment of P.L. 119-31.
Housing and Disaster Recovery
Some Members of the 119th Congress have expressed interest in the future of the Federal
Emergency Management Agency (FEMA), which often provides housing assistance to disaster
survivors when the President declares an emergency or major disaster under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (Stafford Act; P.L. 93-288, as
amended).118 Member offices and committees have introduced legislation to reform FEMA, with
approaches ranging from making FEMA an independent, cabinet-level agency to abolishing the
agency and/or providing disaster assistance as block grants to states.119 An example of a bill to
reform FEMA and its assistance programs is the FEMA Act of 2025 (H.R. 4669), which was
ordered to be reported by the House Transportation and Infrastructure Committee in September
2025. Among other things, H.R. 4669, if enacted, would expand some forms of FEMA’s postdisaster housing assistance.120
Additionally, President Trump issued Executive Order 14180, establishing the FEMA Review
Council to advise and make recommendations to the President regarding reforming the agency.121
The Administration has expressed its intent to have states take on a greater role in disaster
preparedness, as well as response and recovery.122 There is general agreement amongst
stakeholders that reform to the agency is needed, but what that reform should entail is a matter of
debate.123
December 9, 2020, https://www.federalregister.gov/documents/2021/08/23/2021-18001/loan-guaranty-covid-19veterans-assistance-partial-claim-payment-program.
117 38 C.F.R. §§36.4800 et seq.
118 Definitions for “emergency” and “major disaster” can be found at 42 U.S.C. §5122(1) and (2). For additional
information on the types of Stafford Act declarations and assistance that may be made available, see CRS Report
WMR10001, CRS Guide to Federal Emergency Management.
119 For examples of bills introduced in the 119 th Congress that would establish FEMA as an independent, cabinet-level
agency, see the House and Senate versions of the FEMA Independence Act of 2025 (H.R. 2308 and S. 1246), and H.R.
4669, the FEMA Act of 2025. For examples of introduced legislation that would abolish FEMA and establish a block
grant program for disaster relief, see the Sovereign States Emergency Management Act (H.R. 3347); see also the
Disaster Response Flexibility Act of 2025 (H.R. 3251), which would establish an alternative block grant program for
states.
120 Selected examples of how H.R. 4669 would change FEMA’s housing assistance programs include that it would
remove an eligibility requirement that the home be uninhabitable, and would instead allow disaster-damaged homes to
be eligible for assistance; and it would allow FEMA to provide Rental Assistance in a way that accounts for local postdisaster rent increases (see Committee Amendments available at https://plus.cq.com/bill/119/HR4669/amendments?0).
121 Executive Order 14180, “Council to Assess the Federal Emergency Management Agency,” 90 Federal Register
8743-8745, January 31, 2025. See also the U.S. Department of Homeland Security, “Federal Emergency Management
Agency Review Council,” web page, last updated July 18, 2025, https://www.dhs.gov/federal-emergency-managementagency-review-council.
122 Executive Order 14239, “Achieving Efficiency Through State and Local Preparedness,” 90 Federal Register 1326713269, March 21, 2025.
123 For information on FEMA’s statutory authorities, regulations, and program-related policies with regard to the
housing assistance the agency may provide to disaster survivors, see Stafford Act Section 408—Federal Assistance to
(continued...)
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FEMA’s Individuals and Households Program (IHP)
FEMA’s Individuals and Households Program (IHP) is a form of Individual Assistance through
which FEMA may provide financial and direct assistance for housing, as well as financial
assistance for other needs. The program covers uninsured or under-insured necessary expenses
and serious needs that cannot otherwise be met.124
FEMA has many different types of IHP Housing Assistance that it can employ, depending on the
housing needs of affected disaster survivors. Options may include various forms of Financial
Housing Assistance (i.e., a grant of money) and Direct Housing Assistance (i.e., a place to live
temporarily).125 However, the IHP does not compensate disaster survivors for all losses and is not
intended to be a substitute for insurance. Given that IHP assistance is intended to assist
individuals who are uninsured or underinsured, questions may arise about the ability of disaster
survivors to recover should there be changes to FEMA and/or its assistance programs. (For a
discussion of insurance, see the “Housing and Insurance” section.)
The National Flood Insurance Program (NFIP)
Another form of disaster assistance that has a direct effect on the housing market is flood
insurance from the NFIP, which is the primary source of flood insurance coverage for residential
properties in the United States. In a community that participates or has participated in the NFIP,
owners of properties in the mapped Special Flood Hazard Area (SFHA)126 are required to
purchase flood insurance as a condition of receiving a federally backed mortgage. Since the end
of FY2017, the NFIP has operated under a series of short-term reauthorizations.127
If NFIP authorization expires, borrowers are not able to close, renew, or increase loans secured by
property in an SFHA until the NFIP is reauthorized (unless they are able to buy private flood
insurance). This could have an impact on housing markets in SFHAs. For example, when the
NFIP lapsed for the whole of June 2010, estimates suggest that over 1,400 home closings were
canceled or delayed each day, representing over 40,000 sales per month.128
During the FY2026 funding lapse that triggered a government shutdown in October and
November 2025, authorization for the NFIP lapsed for 43 days. Early reports suggest that this
lapse of NFIP authorization affected the housing market in some states.129 One study suggested
that an NFIP lapse could disrupt 3,619 closings daily (108,092 monthly), jeopardizing $1.6 billion
Individuals and Households (referred to as the Individuals and Households Program [IHP])—codified at 42 U.S.C.
§5174. FEMA’s IHP regulations are codified at 44 C.F.R. §§206.110-206.120. FEMA’s program guidance is the
Individual Assistance Program and Policy Guide (IAPPG), Version 1.1, FP 104-009-03, May 2021,
https://www.fema.gov/sites/default/files/documents/fema_iappg-1.1.pdf (hereinafter “FEMA, IAPPG”). See also
FEMA’s emergency protective measures, which include emergency shelter, at 42 U.S.C. §5170b(a)(3)(B) and (J); and
FEMA’s Public Assistance Program and Policy Guide, Version 5.0, Effective January 6, 2025, FP 104-009-2,
https://www.fema.gov/sites/default/files/documents/fema_pa_pappg-v5.0_012025.pdf.
124 42 U.S.C. §5174; 44 C.F.R. §206.110(a); and FEMA, IAPPG, p. 41.
125 For additional information on the forms of IHP Housing Assistance, see CRS Report R47015, FEMA’s Individuals
and Households Program (IHP)—Implementation and Considerations for Congress.
126 An SFHA is defined by FEMA as an area with a 1% or greater risk of flooding every year.
127 See P.L. 118-83. For further information on NFIP reauthorizations, see CRS Insight IN10835, What Happens If the
National Flood Insurance Program (NFIP) Lapses?
128 Alexander P. Casadonte and John G. Nevius, “Insurance for Insurance: Adapting the National Flood Insurance
Program to the Challenges of the Present and the Future,” Environmental Claims Journal, vol. 24, no. 4 (November 5,
2012), https://www.tandfonline.com/doi/full/10.1080/10406026.2012.730931.
129 See, for example, Michael Rauber, “Realtors Describe Shutdown’s Ripple Effects,” Florida Realtors, November 7,
2025, https://www.floridarealtors.org/news-media/news-articles/2025/11/realtors-describe-shutdowns-ripple-effects.
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in daily transactions and affecting nearly 40% of the national housing market, with Florida the
most at risk of market disruption.130 There is some evidence that some affected by the NFIP lapse
may have been able to purchase private flood insurance instead.131 The National Association of
Realtors issued a call on October 22, 2025, for information from its members on the impact they
were experiencing from the shutdown.
P.L. 119-37, enacted on November 11, 2025, reauthorized the program through January 30, 2026.
There is evidence of reductions in property prices in homes subject to recurring flooding.132 Some
studies suggest that residential properties exposed to flood risk in the United States may be
overvalued by $121 billion-$237 billion.133 In the event of property price deflation, many
homeowners would be at risk of losing value in their largest asset—their home—with lowincome property owners potentially at greater risk.134 The federal government could also be
exposed to greater losses from flood risks on homes with federally backed mortgages.135
For more information on the NFIP, see CRS Report R44593, Introduction to the National Flood
Insurance Program (NFIP).
CDBG-DR
In response to some disasters, Congress has at times provided supplemental funding for long-term
disaster recovery and other related purposes under the statutory authority of HUD’s conventional
CDBG. Such funding is commonly referred to as CDBG-DR.136 Typically, CDBG-DR funds have
been directed to jurisdictions with the most impacted and distressed areas that have federal
emergency or disaster declarations under the Stafford Act.
CDBG-DR is not a program with a standing authorization or regulations. While CDBG-DR funds
are subject to the CDBG program’s statutory and regulatory requirements, each supplemental
appropriation effectively has established a new CDBG-DR program, meaning the rules that
govern the funding use and oversight may vary with HUD guidance accompanying each
allocation. This process provides a certain amount of flexibility and allows Congress as well as
HUD to adapt program requirements to the specific needs of affected communities. However,
130 Michele Lawrie, “4,000 Daily Home Closings at Risk Amid Government Shutdown,” HomeAbroad Research,
October 6, 2025, https://homeabroadinc.com/research/govt-shutdown-home-sales-impact-statistics/.
131 Greg Allen, “For Private Insurance Companies, the Government Shutdown is Good for Business,” NPR, October 16,
2025, https://www.npr.org/2025/10/16/nx-s1-5574322/government-shutdown-helps-private-flood-insurancecompanies.
132 For example, see Benjamin J. Keys and Philip Mulder, Neglected No More: Housing Markets, Mortgage Lending,
and Sea Level Rise, National Bureau of Economic Research, Working Paper 27930, Cambridge, MA, October 2020, p.
3, https://www.nber.org/system/files/working_papers/w27930/w27930.pdf; and Stephen A. McAlpine and Jeremy R.
Porter, “Estimating Recent Local Impacts of Sea-Level Rise on Current Real-Estate Losses: A Housing Market Case
Study in Miami-Dade, Florida,” Population Research and Policy Review, vol. 27 (2018), pp. 871-895.
133 Jesse D. Gourevitch et al., “Unpriced Climate Risk and the Potential Consequences of Overvaluation in US Housing
Markets,” Nature Climate Change, vol. 13 (February 16, 2023), pp. 250-257.
134 Miyuki Hino and Marshall Burke, Does Information About Climate Risk Affect Property Values? National Bureau
of Economic Research, Working Paper 26807, Cambridge, MA, February 2020, p. 4, https://www.nber.org/papers/
w26807.
135 See, for example, CBO, Flood Damage and Federally Backed Mortgages in a Changing Climate, November 2023,
https://www.cbo.gov/publication/59753.
136 For more information on CDBG-DR, see “CDBG-DR Overview” on the HUD Exchange website at
https://www.hudexchange.info/programs/cdbg-dr/overview/.
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some analysis suggests that it may also contribute to protracted rulemaking periods, inconsistent
administrative time frames, and funding delays, posing coordination and planning challenges.137
There have been a number of proposals in recent Congresses to formally authorize CDBG-DR or
a similar program to provide for long-term unmet disaster recovery needs. In the 119th Congress,
CDBG-DR authorization provisions are included in the ROAD to Housing Act (Section 501 of S.
2651, as reported by the Senate Banking Committee, and Section 5501 of Division I of S. 2296,
the Senate-passed NDAA).
For more information on CDBG-DR in general, see CRS Report R46475, The Community
Development Block Grant’s Disaster Recovery (CDBG-DR) Component: Background and Issues.
For more information on proposals related to standardizing CDBG-DR processes or formally
authorizing the program, see CRS Insight IN12191, CDBG-DR Process Standardization: Selected
HUD Actions and Legislative Proposals.
137 See, for example, GAO, Disaster Recovery: Better Monitoring of Block Grant Funds is Needed, GAO-19-232,
March 25, 2019, https://www.gao.gov/products/gao-19-232; and HUD Office of Inspector General, Final Audit Report
– HUD’s Office of Block Grant Assistance Had Not Codified the Community Development Block Grant Disaster
Recovery Program, Audit Report Number: 2018-FW-0002, July 22, 2018, https://www.hudoig.gov/reportspublications/report/final-audit-report-huds-office-block-grant-assistance-had-not-codified.
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Appendix A. Housing Bills in the 119th Congress
This appendix lists housing-focused bills that have received floor or committee action (including
hearings held) during the 119th Congress, according to a search performed on November 24,
2025. Given limitations of the search parameters used, it should not be considered exhaustive.
Appropriations bills and broader bills that contain some housing-related provisions but are not
primarily housing related are not included.
Table A-1. Housing Bills in the 119th Congress that Received Committee or Floor
Action as of November 24, 2025
(ordered by chamber and bill number)
Bill Number
Bill Title
Status
House Bills
H.R. 3230
Financial Institution Regulatory
Tailoring Enhancement Act
Reported by the House Committee
on Financial Services
H.R. 2808
Homebuyers Privacy Protection Act
Enacted as P.L. 119-36
H.R. 2130
Tribal Trust Land Homeownership
Act of 2025
Subcommittee hearings held
by the House Natural Resources
Committee’s Subcommittee on
Indian and Insular Affairs
H.R. 1815
VA Home Loan Program Reform
Act
Enacted as P.L. 119-31
H.R. 965
Housing Unhoused Disabled
Veterans Act
Passed the House
H.R. 225
HUD Transparency Act of 2025
Reported by the House Committee
on Financial Services
H.R. 224
Disabled Veterans Housing Support
Act
Passed the House
S. 2651
ROAD to Housing Act of 2025
Reported by the Senate Committee
on Banking, Housing, and Urban
Affairs
S. 1467
Homebuyers Privacy Protection Act
Passed the Senate. (Identical to H.R.
2808, above, which was enacted
into law.)
S. 723
Tribal Trust Land Homeownership
Act of 2025
Reported by the Senate Committee
on Indian Affairs.
Senate Bills
Source: The bills and actions in this table are based on a CRS search conducted
on https://www.congress.gov on November 24, 2025.
Notes: The search was limited to bills that had received committee or floor action and were (1) classified with
the policy area “Housing and Community Development,” or (2) classified with the policy area “Finance and
Financial Sector” or “Native Americans” and certain housing-related subject terms. Bills where the only
committee action listed as of the date of the search was committee referrals are excluded; bills where hearings
were held are included. Some housing-related bills may not be captured by this search and therefore do not
appear in this table. Some of the stand-alone measures shown in this table, or similar provisions, may be included
in broader bills that receive(d) additional action, but such broader bills would not be reflected in this table unless
they are primarily housing-related.
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Appendix B. Housing Hearings in the 119th
Congress
This appendix lists hearings that have been held during the 119th Congress that were primarily
focused on housing-related issues, according to a search performed on November 24, 2025.
Table B-1. Housing-Related Hearings in the 119th Congress
(ordered by chamber and date)
Title
Committee and
Subcommittee (if applicable)
Date
House Hearings
HOME 2.0: Modern Solutions to the
Housing Shortage
House Committee on Financial Services,
Subcommittee on Housing and Insurance
July 16, 2025
Housing in the Heartland: Addressing Our
Rural Housing Needs
House Committee on Financial Services,
Subcommittee on Housing and Insurance
June 12, 2025
Expanding Choice and Increasing Supply:
Housing Innovation in America
House Committee on Financial Services,
Subcommittee on Housing and Insurance
May 14, 2025
Decades of Dysfunction: Restoring
Accountability at HUD
House Committee on Financial Services,
Subcommittee on Oversight and
Investigations
April 8, 2025
Building Our Future: Increasing Housing
Supply in America
House Committee on Financial Services,
Subcommittee on Housing and Insurance
March 4, 2025
Innovation in U.S. Housing: Solutions and
Policies for America’s Future
Senate Committee on Banking, Housing,
and Urban Affairs, Subcommittee on
Housing, Transportation, and Community
Development
October 21, 2025
Housing Roadblocks: Paving a New Way to
Address Affordability
Senate Committee on Banking, Housing,
and Urban Affairs
March 12, 2025
Senate Hearings
Source: The hearings in this table are those identified by a CRS search conducted on ProQuest Congressional
on November 24, 2025.
Notes: The search was limited to hearings that included certain housing-related terms in the hearing title.
Hearings focused on the President's budget requests and those to consider specific bills were excluded, as were
confirmation hearings for nominees in housing-related roles, such as the Secretary of HUD. Some relevant
hearings may not be captured by this search because their titles did not include the search terms used or
because they were not yet available on ProQuest Congressional as of the date of the search.
Congressional Research Service
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Housing Issues in the 119th Congress
Author Information
Katie Jones, Coordinator
Analyst in Housing Policy
Maggie McCarty
Specialist in Housing Policy
Nicholas E. Buffie
Analyst in Public Finance
Libby Perl
Specialist in Housing Policy
David H. Carpenter
Legislative Attorney
Karl E. Schneider
Analyst in Financial Economics
Darryl E. Getter
Specialist in Financial Economics
Henry G. Watson
Analyst in Housing Policy
Diane P. Horn
Specialist in Flood Insurance and Emergency
Management
Baird Webel
Specialist in Financial Economics
Joseph V. Jaroscak
Analyst in Economic Development Policy
Elizabeth M. Webster
Specialist in Emergency Management and Disaster
Recovery
Mark P. Keightley
Specialist in Economics
Lida R. Weinstock
Analyst in Macroeconomic Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.
Congressional Research Service
R48743 · VERSION 2 · NEW
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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.