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Congress has officially entered the annual district work period, which spans most of the month of August. During this time, Members of Congress return home to meet with constituents, visit local businesses and organizations, and hear directly from the communities we represent. You can read more about what I was up to this week further down in this newsletter.
The district work period also provides a great opportunity to take a deeper dive into some of the issues you may have seen in the headlines or heard about on the news. This week, we’re taking a closer look at housing.
Many things come to mind when we hear the question, “What is the American dream?” The answers are unique to the individual. To some, the American dream may mean enormous wealth. Others may believe that it is access to world-class education or the freedom to say exactly what you think without fear of punishment.
For me, when I think of the American Dream, one of the first things that comes to mind is owning your own home. A house is more than just a place where we eat and sleep. It is where we celebrate life’s wins and grieve the losses. It is where we raise our children to be the next generation of great Americans.
Beyond the sentimental value, home ownership is a foundational piece of an American’s creation and storage of wealth. It is often a stable investment that will gain value over time. Home ownership provides a pathway for a family to build generational wealth.
But the dream of home ownership is becoming more of just that for young people—a dream.
Recognizing the housing challenges that many Americans face, my colleagues and I have acted through multiple legislative efforts this Congress to spur housing development, increase supply, and expand access.
WORKING FAMILIES TAX CUTS
Let’s start with the big-ticket items included in last year’s Working Families Tax Cuts (WFTC) law.
The Low-Income Housing Tax Credit (LIHTC) is one of the federal government’s principal ways to incentivize the construction of affordable housing. Prior to the WFTC, there was not enough LIHTC to meet demand. To address this, our bill permanently increased states’ LIHTC allocations by 12 percent, allowing more developers to access this crucial credit and fill the need for more housing.
The federal government’s two main location-based tax incentives that trigger economic growth and community development are the New Markets Tax Credit (NMTC) and Opportunity Zones (OZs). Both incentives allow private investors to move projects forward in low-income and distressed areas. The WFTC not only reauthorized these two programs permanently, which is key to investor certainty, but it also created a new category of Rural OZs which provide tax benefits for developments in rural areas.
In addition to the tax incentives that will catalyze affordable housing development, the WFTC prevented the largest tax hike in American history. Without the passage of the WFTC, the average taxpayer would be staring down a 22 percent tax increase. The bill also included multiple tax relief provisions that allow small businesses to reinvest in their employees and create new jobs. This tax relief goes hand-in-hand with increasing families’ ability to purchase their own home through higher take-home pay and more employment opportunities.
APPROPRIATIONS
In my role as Chairman of the House Appropriations Transportation, Housing and Urban Development (THUD) Subcommittee, I oversee the funding for the Departments of Transportation (DOT) and Housing and Urban Development (HUD). In this position, I am able to prioritize resources for HUD programs that increase affordable housing development and give individuals the information and skills needed to own a home.
The HOME Program is HUD’s chief housing development program. It provides federal block grants to state and localities to build, buy, and fix affordable housing for low-income families. Understanding the importance of this program, I included $1.25 billion for HUD to administer these grants in my Fiscal Year (FY) 2026 THUD bill, which President Trump signed into law in February. This funding will go towards meaningful housing projects across the country, even right here in Arkansas’s Third District.
Another important program included in my THUD bill is the Community Development Block Grant Program (CDBG) Program. CDBG provides formula grants to states, cities, and counties to support public infrastructure improvements, economic development, and affordable housing development. Because I believe so strongly in this program, I provided full funding for CDBG at $3.3 billion in both FY 2026 and FY 2027.
One of the core initiatives of the Trump Administration is refocusing HUD programs on improving long-term outcomes for individuals through work, financial literacy, and, eventually, home ownership. The primary goal is to give people the tools to be self-sufficient for the long-term.
To support this goal, my FY 2027 THUD bill provides $60 million for HUD’s Self-Help and Assisted Homeownerhip Opportunities Program (SHOP). Through nonprofits like our very own NWA Habitat for Humanity, HUD provides funding for land acquisition, infrastructure improvements, and administrative costs to set the stage for sweat equity and volunteer-based homeownership for low-income individuals. Essentially, individuals who would otherwise not be able to afford a home can invest their time and labor, and with assistance from HUD and other nonprofits, build their own house.
21ST CENTURY ROAD TO HOUSING ACT
The last big piece of legislation I want to highlight is the 21st Century ROAD to Housing Act (ROAD), which, with my support, became law earlier this month.
This bill, championed by my fellow Arkansas colleague, Representative French Hill, is one of the most consequential pieces of federal housing legislation in the last decade. ROAD was a bipartisan, bicameral package that contained dozens of needed reforms to key factors in housing affordability.
Since 1974, HUD has required that manufactured housing—prefabricated houses that are built entirely inside a factory—be set on a permanent steel chassis. However, the chassis also raises the home off the ground and makes adding a second story or basement more difficult. This requirement reflects earlier construction practices, when manufactured homes were moved more frequently. Now, only 5-7 percent are relocated after their initial placement.
Because of this, ROAD took the critical step of removing this permanent chassis requirement for manufactured housing. Manufactured homes can now be built with or without this chassis, eliminating costs, enabling the construction of multi-story housing, duplexes, and infill housing that matches traditional site-built homes.
To make home ownership more attainable for those with lower credit, ROAD created a HUD pilot program for Federal Housing Administration (FHA) small-dollar mortgages of $100,000 or less. The goal of this pilot program is to provide a financing option for smaller homes without overleveraging borrowers.
Another provision in ROAD was a prohibition on large institutional investors purchasing single-family homes, with a few exceptions for build-to-rent properties and flip houses. These companies, sometimes with valuations upwards of a trillion dollars, have been outbidding individuals and families for single-family home purchases, raising market prices and limiting people’s ability to buy a home.
Housing is an issue that will always be a high priority because shelter is a basic human need. I am proud that Congress has taken steps to find a solution to the current obstacles. Whether it’s historic tax relief, new policy, or funding allocated in my THUD bill, I will continue working towards solutions that make the dream of affordable homeownership a reality. |