NCSHA Washington Report | January 23, 2026

The surprising bipartisan consensus in both blue and red states in recent years on the need to reform local land use rules that block the development of necessary new housing has been matched in Washington with big majorities of both parties’ support for construction incentives, like last year’s expansions of Low-Income Housing Tax Credits and Opportunity Zones, and broad-based “pro-housing” bills sailing through key committees on their way to potential passage soon.

Now, maybe even more surprisingly, Republicans and Democrats are sounding a lot alike in proposals to lower the costs people pay to buy and maintain a home of their own.

Last week, the America First Policy Institute, the deeply Trump Administration-connected think tank that was “closer than any other outside player in his planning for a second term,” rolled out a “Make Housing Great Again” plan and enlisted online influencer Benny Johnson to mobilize his “massive following” to promote it. The plan proposes a five percent mortgage product for first-time buyers, tax-free savings mechanisms for down payments, and a mortgage tax credit for young families, among other things.

Comparable ideas are included in the opening section of the comprehensive policy platform released by the Republican Study Committee, the largest and most powerful conservative caucus in the House. The “Making the American Dream Affordable” blueprint would create a “zero to low down payment option” backed by the Federal Housing Administration, push Fannie and Freddie to facilitate portable and assumable mortgages, and allow tax-free savings for “home mitigation and disaster recovery expenses.”

Similarly, Senate Democrats’ “Opportunity Starts at Home” agenda, released last week, also aims to expand portable and assumable mortgages, provide down payment assistance to “hardworking families,” and cut closing costs and mortgage insurance, along with other steps to encourage more building.

Even the production-focused “Build, Baby, Build” plan from the Democrat-aligned Center for American Progress recommends Fannie and Freddie provide lower-cost financing for mortgages on manufactured homes to “expand lender participation, increase access to lower-cost credit, and make home purchases more affordable for manufactured home buyers” and calls for federal action to reduce closing costs.

The reasons both progressive and MAGA think tanks and key power centers in Congress for each party — not to mention the Trump Administration — are all singing from similar song sheets on housing costs are as practical as they are political. Supply policies take time to produce results and require scale to lower prices. Millions of working-class homeowners and would-be buyers — in other words, voters — need some extra help now.

Careful design, need-based targeting, and reliance on proven delivery channels can ensure buyer and owner incentives don’t drive up prices further. For proof, and partners, policymakers should look to state housing finance agencies. State HFAs already provide below-market mortgage loans, down payment assistance, mortgage tax credits, and resources to lower the cost of owning and maintaining a home that help 130,000 families every year.

Put more tools in their hands, based on policies both parties and the president support, and even more Americans will benefit.

Stockton Williams | Executive Director

In This Issue

• NCSHA Welcomes New Members
• Trump Announces Housing Proposals, Issues Executive Order on Investor Home Purchases
• House Passes FY26 HUD, Other Funding Bills
• HUD Proposes Repeal of Disparate Impact Rule
• HUD Secretary Testifies to House Financial Services Committee
• House Oversight Subcommittee Examines Housing Affordability
• HUD Makes $4 Million Available for Lead Hazard Reduction Capacity-Building Grants
• National Housing Supply Summit Convening in DC in March
• NCSHA in the News
• Looking Ahead

NCSHA Welcomes New Members
The following organizations have joined NCSHA as Affiliate members this winter: Rainbow Housing Assistance Corporation and Louisiana Division of Administration Office of Community Development – Disaster Recovery

Trump Announces Housing Proposals, Issues Executive Order on Investor Home Purchases
In a speech at the World Economic Forum Wednesday, President Trump outlined several policies his administration intends to pursue to make homeownership more affordable. The proposals, all of which Trump had previously announced, include directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage securities, limiting the ability of institutional investors to purchase single-family homes, allowing homeowners to depreciate the value of their home on their taxes, and capping credit card interest rates at 10 percent (Trump argued that high credit card payments are one of the biggest impediments to households being able to afford a home).

On Tuesday evening, the White House posted an executive order directing the Federal Housing Administration, Federal Housing Finance Agency, U.S. Department of Agriculture, and Department of Veterans’ Affairs to promulgate regulations in the next 60 days that prohibit federal mortgage insurance programs from insuring mortgages on single-family homes purchased by large institutional investors and prevent Fannie Mae and Freddie Mac from guaranteeing such loans. The order also directs the agencies to ensure the firms or agencies they oversee do not sell foreclosed homes to institutional investors. The order directs the Department of Treasury to publish in the next 30 days definitions of ‘large institutional investor’ and ‘single-family home’ to be used for the regulations.

House Passes FY26 HUD, Other Funding Bills
The House voted 341 – 88 yesterday to pass the Consolidated Appropriations Act, 2026 (H.R. 7148), which would provide funding for the U.S. Department of Housing and Urban Development (HUD) and other federal agencies for Fiscal Year 2026 (FY26). The bill would provide $77.3 billion for HUD, up from $68.7 billion in FY25. The appropriations package now heads to the Senate, where it is expected to be voted on next week before federal funding lapses on January 30. See NCSHA’s blog and funding chart for specific HUD program funding levels.

HUD Proposes Repeal of Disparate Impact Rule
Last week, HUD published a proposed rule in the Federal Register to rescind its Discriminatory Effects Standard regulation which governs disparate impact liability within the context of the Fair Housing Act and codified a burden-shifting framework to guide disparate impact claims.

Disparate impact liability is the legal theory prohibiting seemingly facially neutral policies that cause a disproportionate negative impact on a protected class. The proposed rule asserts, “it is appropriate for courts, not a Federal agency, to make determinations related to the interpretations of disparate impact liability under the Fair Housing Act.” The Supreme Court found disparate impact to be cognizable under the Fair Housing Act in a 2015 decision. The proposed rule is consistent with Executive Order 14281, Restoring Equality of Opportunity and Meritocracy, in which President Trump ordered the elimination of disparate impact liability to the maximum extent possible and directed federal agencies to repeal or amend disparate impact regulations.

Comments on the proposed rule are due to HUD February 13. To inform NCSHA’s comments, send your feedback to Jennifer Schwartz by January 27. For more information, see our blog.

HUD Secretary Testifies to House Financial Services Committee
The House Financial Services Committee on Wednesday held an oversight hearing on HUD programs that included testimony from HUD Secretary Scott Turner. In his opening statement, Committee Chair French Hill (R-AR) commended Turner for making what Hill said were needed reforms to HUD, which he said had strayed from its mission under the Biden Administration and promulgated costly regulations that made housing less affordable. Ranking Member Maxine Waters (D-CA) sharply criticized Turner’s tenure at HUD, contending he was worsening the affordable housing crisis by attempting to cut funding for homelessness and other programs, rolling back fair housing enforcement, and eliminating HUD staff and regional offices.

In his oral and written testimony, Turner said HUD is working to reduce regulations to foster more affordable housing, specifically citing the agency’s efforts to rescind the Affirmatively Furthering Fair Housing rule and floodplain standards for homes purchased with Federal Housing Administration-insured mortgages.

During the hearing, members from both parties discussed the affordable housing shortages their districts face. Hill and several other committee Republicans highlighted the Housing for the 21st Century Act, which the committee passed overwhelmingly last month, and which Turner said the Trump Administration supports.

Housing Subcommittee Chair Mike Flood (R-NE) asked Turner about several provisions in the HOME Reform Act (which is included in the Housing for the 21st Century Act), including those that would streamline the application of Section 3 and environmental review requirements as they apply to HOME and increase the income limits for HOME-funded home buyer loans. Turner expressed support for both provisions. Flood and Troy Downing (R-MT) also expressed concerns about HUD’s 2023 rule imposing Build America, Buy America requirements on HUD-funded housing developments. Turner agreed such requirements have increased the costs of developing housing.

House Oversight Subcommittee Examines Housing Affordability
The House Oversight Committee’s Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs held a hearing yesterday to examine the impact of policies and market developments on the shortage of affordable housing. Subcommittee Chair Eric Burlison (R-MO) kicked off the hearing by noting the country is dealing with an historical shortage of affordable homes, which he argued was exacerbated by Biden Administration policies that artificially increased housing demand, added additional regulatory burdens to housing construction, raised inflation, and encouraged high immigration that added to housing demand.

Ranking Member Maxwell Frost (D-FL) also expressed alarm about the housing crisis and contended President Trump was making it worse through his tariff and immigration policies. Frost said he would be willing to work together with Trump and congressional Republicans to ban institutional investors from purchasing single-family homes.

Subcommittee members and witnesses discussed a number of factors impacting housing affordability, including energy efficiency regulations and other building standards, zoning rules, insurance costs, the role of institutional investors in the market, federal tax incentives, and the impact of tariffs and immigration restrictions on housing costs. Witnesses included Edward Pinto, senior fellow and codirector of the American Enterprise Institute Housing Center; Buddy Hughes, board chair of the National Association of Home Builders; Patrice Onwuke, director of the Independent Women Forum’s Center for Economic Opportunity; and Caroline Nagy, associate director of housing policy at Americans for Financial Reform.

HUD Makes $4 Million Available for Lead Hazard Reduction Capacity-Building Grants
On January 9, HUD announced more than $4.4 million is available through the Lead Hazard Reduction Capacity Building Grant Program. HUD anticipates awarding five grants to eligible local, state, and tribal government entities to expand the infrastructure needed to identify and control lead-based paint hazards in privately owned rental or owner-occupied housing. The deadline for applications is February 26. Additional application information is available here.

National Housing Supply Summit Convening in DC in March
The Housing Innovation Alliance and HousingTech have opened registration for and invite interested stakeholders to attend the National Housing Supply Summit in Washington, DC, on March 18. The summit will feature presentations by and conversations among housing industry experts and policymakers on innovations increasing production of market-rate single-family and multifamily housing. Register here to attend in person or watch via live stream.

NCSHA in the News
Buzz House Podcast, 1.16.26, What 2026 Could Mean for Housing Policy

Looking Ahead

Legislative and Regulatory Activities

• January 27 | Comments Due to NCSHA | HUD Proposed Rule Repealing Its Discriminatory Effects Standard
• February 10 | House Financial Services Committee Hearing: Priced Out of the American Dream: Understanding the Policies Behind Rising Costs of Housing and Borrowing
• February 10 | House Financial Services Committee Oversight and Investigations Subcommittee Hearing: Building a Solid Foundation: Restoring Trust and Transparency in Public Housing Agencies
• February 11 | House Financial Services Committee Housing and Insurance Subcommittee Hearing: Homeownership and the Role of the Secondary Mortgage Market
• February 13 | Comments Due | HUD Proposed Rule Repealing Its Discriminatory Effects Standard

NCSHA, State HFA, and Industry Events

• January 28 | NCSHA Webinar: Generating Additional Funding with Recycled Bonds | Virtual
• January 28 – 29 | The Affordable Housing Tax Credit Coalition Annual Meeting | Miami, FL
  Jennifer Schwartz will speak at this event.
• February 4 – 6 | National Community Development Association Winter Legislative and Policy Conference | Washington, DC
  Jennifer Schwartz will speak at this event.
• February 5 | Affordable Housing Investors Council Webinar: Permanent Supportive Housing Underwriting Guidance | Virtual
• February 12 | Raymond James Affordable Housing Investments Summit | Virtual
  Jim Tassos will speak at this event.
• March 9 – 11 | NAHRO Washington Conference | Washington, DC
  Jennifer Schwartz will speak at this event.
• March 16 | ULI Terwilliger Center for Housing: “Let’s Build” Policy Forum | Baltimore, MD
  Stockton Williams will participate in this event.
• March 18 | National Housing Supply Summit | Washington, DC, and Virtual
• March 18 – 19 | Yardi Forum: Affordable Housing and PHA | Boston, MA
  Jennifer Schwartz will speak at this event.