Congress Advances Housing Affordability Package Amid Rising Costs
By John Nada·Feb 9, 2026·4 min read
Congress is set to pass a housing affordability package aimed at easing construction regulations, backed by bipartisan support and Trump's focus on housing issues.
House lawmakers are poised to pass a significant package of bills aimed at enhancing housing affordability. The initiative focuses on incentivizing builders and local governments to increase construction by easing regulations surrounding home building. With strong bipartisan support, the legislation is expected to gain momentum, especially with President Donald Trump's emphasis on housing issues.
Numerous provisions are included in the bill, such as cutting housing and environmental regulations for home construction. Local communities may receive grants to simplify the building process by providing pre-reviewed housing designs and streamlining construction efforts. Additionally, the Department of Housing and Urban Development plans to develop best practices for zoning guidelines, while definitions for manufactured and modular housing will be updated to promote factory-built homes, which can be constructed in a fraction of the time compared to traditional methods.
Community banks are also set to benefit from changes proposed in the bill. This includes allowing banks to accept more custodial and reciprocal deposits, which could enhance their ability to provide mortgages. Other proposed changes aim to facilitate the establishment of new banks and revise how the FDIC evaluates banking mergers. Although the Senate bill, which passed last year, does not include many community bank provisions, it proposes more programs compared to the House's version. The Senate's earlier package received substantial bipartisan support, advancing unanimously out of committee with all 24 senators backing it, illustrating a rare moment of collaboration on a critical issue.
Rep. Maxine Waters, D-Calif., who endorsed the legislation in committee, cautioned that reforms alone would not suffice unless housing programs are adequately funded. She emphasized, "Policy reforms alone are not enough. These programs must be funded if they are going to work." This statement underscores a broader concern that while legislative measures can facilitate change, without financial backing, such initiatives may fall flat. House Financial Services Chair French Hill, R-Ark., echoed this sentiment, stating that a housing bill's successful passage is a shared goal between him and Senate Banking, Housing and Urban Affairs Chair Tim Scott, R-S.C.
Rep. Mike Flood, R-Neb., expressed optimism about the bill's prospects this year, noting that various stakeholders, including the White House, Senate, and House, have contributed ideas. He remarked on the collective desire to advance housing affordability measures, highlighting the bipartisan nature of the effort. Flood's comments reflect a growing recognition among lawmakers that addressing housing affordability is a pressing national concern that transcends party lines. The urgency surrounding housing affordability reflects a broader concern for many Americans as they struggle with increasing home costs.
The legislation aims to address this pressing issue by streamlining construction processes and enhancing mortgage availability, potentially easing the burden for those seeking homeownership. The prospect of reducing regulatory barriers and making the home buying process more accessible is welcomed by many, especially first-time homebuyers who have faced significant challenges in the current market.
As the housing affordability package gains traction, it could reshape the landscape for builders, banks, and prospective homeowners. The focus on bipartisan collaboration underscores a shared recognition of the challenges posed by the current housing market. Lawmakers are now at a critical juncture to enact meaningful reforms that could significantly impact housing accessibility across the nation. However, one notable absence in the bill is the formalization of Trump's proposed ban on large investors buying homes. Hill mentioned that while other lawmakers have introduced related bills, consensus in both chambers would be necessary for such measures.
The potential impact of this legislation cannot be understated. For many families, the dream of homeownership is increasingly out of reach due to skyrocketing prices and limited inventory. As working parents strive to balance their jobs with the need to secure stable housing, the passage of this package could provide a much-needed boost to their aspirations.
As the situation continues to develop, it will be crucial for stakeholders to maintain momentum and ensure that both policy reforms and funding commitments are aligned to achieve the desired outcomes. The stakes are high, and the need for effective solutions has never been clearer.