New Bipartisan Push in Congress Aims to Boost U.S. Housing Supply

In a rare show of cross-party unity, Senators Elizabeth Warren (D-MA) and John Kennedy (R-LA) have teamed up to introduce the Build Now Act, a bold legislative proposal designed to stimulate housing construction across the nation and tackle the deepening housing shortage.

The bill, set to be part of a broader housing legislative package under consideration by the Senate Banking, Housing, and Urban Affairs Committee, uses targeted incentives to encourage local governments to ramp up housing development, particularly in high-demand markets.

Rewarding Communities That Build

The Build Now Act seeks to reward communities that show real progress in expanding their housing stock. Cities and counties that demonstrate improvement in housing production would see a boost in their Community Development Block Grant (CDBG) allocations, while those that fail to make progress could face a modest reduction in funding.

“We’re in the middle of a national housing crisis that’s hitting families in every corner of the country,” said Sen. Warren. “Communities that step up to meet this challenge should be rewarded and this legislation does exactly that.”

The proposal includes a two-year grace period, giving municipalities time to adopt new housing policies and remove bureaucratic hurdles. Communities would be evaluated based on their own historic performance, allowing for fair comparisons across diverse regions.

Crucially, economically distressed communities, disaster-affected areas, and cities without local zoning control would be exempt from penalties, keeping the focus on communities that have both demand and the tools to increase supply.

A Conservative Voice for Building More

Senator Kennedy emphasized the economic drag caused by excessive red tape.

“Overregulation is killing housing construction,” Kennedy said. “The Build Now Act gives communities a reason to clear the path and start building again. Owning a home shouldn’t be a fantasy for working Americans.”

Under the legislation, communities at risk of CDBG reductions would receive guidance and technical support from HUD to help them improve their housing performance metrics and avoid funding cuts.

Fannie, Freddie, and a $250 Billion Opportunity

Alongside the Build Now Act, another bipartisan bill The Housing for U.S. Act is gaining traction in the House. Introduced by Reps. Tom Suozzi (D-NY) and Nicole Malliotakis (R-NY), the bill proposes leveraging the potential $250 billion in proceeds from ending the federal conservatorship of Fannie Mae and Freddie Mac.

The plan? Reinvest those funds into the creation of up to 3.5 million new housing units over the next decade primarily aimed at middle-income Americans, including essential workers like teachers, nurses, and first responders.

“Fannie and Freddie’s exit from conservatorship could be a historic opportunity,” said Rep. Suozzi. “Let’s use that moment to invest in our workforce and expand access to housing for families who are the backbone of our communities.”

The bill would also launch a federally backed low-interest loan program, helping cities finance new construction while ensuring affordability. After the 10-year construction window, any remaining funds would go toward reducing the federal deficit.

A National Call to Build

With housing affordability becoming one of the most pressing economic challenges in America, these legislative efforts signal growing bipartisan recognition that supply is at the heart of the issue. By incentivizing construction, breaking down local regulatory barriers, and making smart use of federal assets, lawmakers are attempting to create a more stable, accessible housing market especially for working families.

Both bills could prove transformative if passed, offering a blueprint for how the public and private sectors can work together to confront the country’s housing shortfall one unit, one neighborhood, one community at a time. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.