The 119th Congress has been considering a number of housing-related issues and potential federal policy responses through legislative action, committee hearings, and other oversight activities. Some issues are broad and multifaceted, such as housing affordability concerns, while others are more narrowly related to specific federal programs or policies. This report describes selected housing issues that have been active during the 119th Congress and related federal activities. Housing Affordability A primary area of congressional interest has been the affordability of housing for both renters and homeowners. While housing affordability is a perennial policy issue, particularly for low-income households, it has become a growing concern in recent years in light of notable increases in house prices and rents, rising mortgage interest rates, increasing property insurance costs, and housing supply constraints in many housing markets. Although housing markets are local in nature, and housing market conditions vary across the country, concerns about housing affordability have been widespread. The 119th Congress has held several hearings to examine factors contributing to housing supply and affordability challenges and to consider potential solutions. In addition, Members of Congress have introduced a number of bills intended to address housing affordability and/or supply concerns in different ways. The FY2025 budget reconciliation legislation (P.L. 119-21) enacted in July 2025 included an expansion of the low-income housing tax credit, the largest federal program supporting the development of affordable rental housing, as well as certain changes to that program. In addition, in July 2025 the Senate Banking, Housing, and Urban Affairs Committee unanimously advanced the ROAD to Housing Act of 2025 (S. 2651), which addresses a variety of housing policy topics. Most of the sections in this bill are similar to previously introduced stand-alone bills. A version of the ROAD to Housing Act passed the Senate as part of the National Defense Authorization Act for Fiscal Year 2026 (S. 2296) in October 2025. Congress has also expressed interest in certain issues that may contribute to, or result from, housing affordability concerns. For example, Congress has been considering potential policy responses to rising property insurance costs that can affect the affordability of rental or owner-occupied housing. Addressing homelessness is another issue of ongoing interest to Congress, and provisions related to certain U.S. Department of Housing and Urban Development (HUD) homelessness programs are included in the ROAD to Housing Act. Other Housing-Related Provisions in FY2025 Budget Reconciliation Legislation As noted, the FY2025 budget reconciliation legislation included an expansion of, and changes to, the low-income housing tax credit. It also included certain other provisions related to housing. It extended and revised provisions related to the mortgage interest deduction and deductions of state and local property taxes that were enacted as part of FY2018 budget reconciliation legislation commonly referred to as the Tax Cuts and Jobs Act (P.L. 115-97). It eliminated several tax credits related to home energy efficiency or residential clean energy and rescinded unobligated funding from certain programs that could be used for green housing activities. It also included changes to funding for the Consumer Financial Protection Bureau (CFPB), which provides oversight of many financial market actors, including mortgage originators and servicers. Housing Assistance Programs A number of housing issues of interest to Congress involve federal housing assistance programs, including appropriations and proposed programmatic changes. For example, the House Financial Services Committee’s Housing and Insurance Subcommittee has taken actions related to potential changes to the HOME Investment Partnerships Program and a HUD block grant. The ROAD to Housing Act also includes changes to HOME. Housing Finance The 119th Congress enacted the VA Home Loan Reform Act (P.L. 119-31), which establishes a new loss mitigation option for veterans with home loans guaranteed by the Department of Veterans Affairs (VA). It establishes a partial claim option, which is a way of resolving a mortgage delinquency that allows missed payments to be moved to the end of the loan under certain circumstances. Another issue of interest to the 119th Congress is the future of Fannie Mae and Freddie Mac, two government-sponsored enterprises that back over half of residential mortgages and have been in conservatorship since 2008. The Trump Administration has expressed interest in returning these companies to the private sector, though details are unclear. Housing and Disaster Recovery Issues related to housing and disaster recovery have been of interest to Congress, including potential changes to the Federal Emergency Management Agency (FEMA), which administers certain types of housing assistance for disaster survivors; reauthorization of the National Flood Insurance Program (NFIP); and potential changes to the Community Development Block Grant-Disaster Recovery (CDBG-DR) program through which Congress has provided funding for long-term recovery after some disasters.
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