New Bipartisan Bill Would Channel Billions from Fannie and Freddie Towards Middle-Class Housing

In a bold new proposal to tackle America’s ongoing housing affordability crisis, Representatives Tom Suozzi (D-NY) and Nicole Malliotakis (R-NY) have introduced the Housing for U.S. Act a bipartisan bill that aims to reinvest up to $250 billion from the potential privatization of Fannie Mae and Freddie Mac into building millions of affordable homes for working and middle-class families.

The legislation arrives amid renewed interest from the Trump administration in ending the long-standing federal conservatorship of the two government-sponsored enterprises (GSEs). Should that happen, supporters argue the windfall generated from the move could be redirected toward solving one of the country’s most pressing problems: the lack of affordable housing.

Investing in America’s Workforce

At the heart of the bill is the creation of a federally backed, low-cost loan program designed to fund the construction of up to 3.5 million new homes. These homes would target families earning up to 150% of the Area Median Income (AMI) a figure that exceeds $210,000 in high-cost cities like New York or San Francisco.

But this isn’t just about homebuilding it’s about jobs too. The proposal ensures that union labor will be used throughout the development process, creating high-paying, sustainable careers in construction and related trades.

“This is a once-in-a-generation opportunity to invest in America’s middle class,” said Rep. Suozzi. “If the government exits Fannie and Freddie, we could see up to $250 billion in proceeds. Let’s use that money to build homes for hardworking Americans and let’s make sure those homes are built by American workers earning union wages.”

Prioritizing Everyday Heroes

The bill places special emphasis on serving essential workers nurses, teachers, firefighters, police officers, and tradespeople who often earn too much to qualify for traditional affordable housing but not enough to comfortably buy in today’s market.

Rep. Malliotakis emphasized that these individuals are the backbone of local communities: “Too many middle-income Americans fall through the cracks. They’re the ones keeping our neighborhoods safe and our kids educated. This plan gives them the housing support they deserve.”

A Path Out of Conservatorship

Fannie Mae and Freddie Mac have been under federal control since 2008, following the financial crisis. For nearly two decades, they’ve played a critical role in stabilizing the mortgage market currently supporting about 70% of all U.S. home loans, according to the National Association of Realtors.

But now, with both entities turning significant profits, calls for their return to the private market are growing louder. President Trump recently posted on TruthSocial that he’s “giving serious consideration” to privatizing the agencies, describing them as “throwing off a lot of CASH” and ripe for a strategic shift.

Should that move happen, the Housing for U.S. Act would ensure those proceeds don’t vanish into the general fund but instead go directly toward solving housing shortages. After 10 years, any remaining funds would be earmarked for reducing the federal deficit.

Broad Coalition Support

The legislation is already drawing support from a wide range of stakeholders including labor unions like the Teamsters Local 282, the Firefighters Association Local 94, and advocacy groups like the National Urban League.

“This is exactly the kind of forward-thinking, bipartisan policy we need right now,” said Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York. “Not only does it address housing affordability, it puts union tradespeople to work and stimulates the economy at a local level.”

Rep. Scott Fitzgerald (R-WI) also threw his support behind the effort, calling the conservatorship “long overdue for an end” and saying the sale of the GSEs could be a key revenue source for middle-class housing investments.

A Political Moment of Unity

In a time of deep political divides, the Housing for U.S. Act offers a rare glimpse of unity in Washington.

“We’re proud to introduce this as a cross-party effort,” said Suozzi. “Every community, red or blue, is feeling the squeeze of the housing crisis. Young people can’t afford to buy, middle-class workers are priced out, and first responders are being pushed further away from the neighborhoods they serve. This bill is about reversing that trend by building for the people who make America work.” For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.