Poli Alert Politics & Civics
Related Articles
In a rare show of bipartisanship, the Senate Banking Committee on Tuesday unanimously approved a sweeping housing reform package designed to tackle the nation’s deepening housing crisis, signaling that meaningful federal action could be within reach after years of gridlock.
The legislation, dubbed the Road to Housing Act, was co-authored by the unlikely duo of Sen. Tim Scott (R-S.C.) and Sen. Elizabeth Warren (D-Mass.) and would make it easier for private developers and local governments to build more homes. The bill includes deregulatory provisions, new federal incentives, and structural reforms aimed at boosting housing supply across the country — from manufactured units to affordable rentals.
“There may be a question about, ‘Do Americans agree about anything?’” Scott said. “The answer is yes. They agree that housing costs too much and the supply is too low.”
The bill’s unanimous passage through the Banking Committee marks the first major housing legislation to advance from the panel in over a decade, as voters increasingly cite rising home prices and rents as top economic concerns heading into the 2024 election.
Economists estimate the U.S. faces a shortfall of between 1.5 to 4 million homes. The average age for first-time homebuyers is now approaching 40 — a troubling shift in a country where homeownership has long been a primary vehicle for building wealth.
Scott and Warren, both former presidential contenders and ideological opposites, began meeting early this year to find common ground. “We agreed we need more housing and we need less red tape, and those two are intertwined,” Warren said.
Their partnership set the tone for broader collaboration. Every member of the committee ended up backing at least one piece of the legislation, producing odd pairings like Sen. John Neely Kennedy (R-La.) and Warren working together to condition federal grants on local governments’ willingness to expand housing.
“Working with Senator Kennedy is always an adventure,” Warren quipped. “But he was very clear about what ideas fit in which category — and every once in a while, he was open to changing his mind.”
The bill includes a wide range of provisions:
-
Modernizing manufactured housing: Updates the federal definition to include modular and prefabricated homes that aren’t built on a permanent chassis, reducing costs and improving design flexibility.
-
$1 billion Innovation Fund: Warren’s signature contribution would reward communities that increase housing supply with grants for roads, sewers, and other infrastructure.
-
Reauthorizing affordable housing block grants: The bill renews key federal funding streams for state and local housing efforts and expands the use of project-based rental assistance.
-
Support for opportunity zones: Offers new tools for investing in distressed areas and a pilot program to help homeowners and landlords with home repairs.
-
Disaster recovery and rural housing: Expands block grants for rebuilding after disasters and directs resources to rural communities.
Senate Majority Leader John Thune (R-S.D.) signaled support and said the bill would likely reach the Senate floor given its “strong bipartisan support.”
Conservatives backed the bill’s deregulatory focus, while Democrats embraced its emphasis on expanding supply without imposing mandates. “Before my friends in local government get their bowels in an uproar, we’re not telling you how, or even if, to increase housing,” Kennedy said. “That’s up to you.”
Still, housing advocates warn the effort may be undermined by broader Republican budget proposals. The Trump administration has proposed billions in cuts to rental assistance programs and time limits on aid, which could negate many of the bill’s benefits. While Trump’s earlier tax bill did expand the Low-Income Housing Tax Credit, experts say that’s not enough to close the affordability gap.
“Everyone should be getting good credit for something serious,” said Noel Poyo of the Housing Partnership Network. “But if that’s happening in the context of major cuts to housing resources, it undermines the value of any policy steps in the near future.”
Even so, housing advocates, industry groups, and policymakers across the aisle praised the bill as a long-overdue breakthrough.
“He went member by member and did the hard work,” said Sen. Bernie Moreno (R-Ohio), referring to Scott’s efforts to unify the panel.
Whether the full Senate can maintain that unity remains to be seen — but for now, the Road to Housing Act has given reformers a reason to hope.
