Kennedy's Homeownership Legislation Passes Key Banking Committee Vote

Strategic Insights -

The U.S. Senate Banking Committee has unanimously voted to advance Sen. John Kennedy's Build Now Act, which aims to incentivize new home construction by tying federal funds to cities' rates of home construction. This legislation is part of the ROAD to Housing Act of 2025, a comprehensive housing package that includes several changes to housing policy. The Build Now Act has garnered support from various organizations, including the Niskanen Center, the National Association of Home Builders, and the Mortgage Bankers Association, as well as Harvard University Professor of Economics Edward Glaeser.

Key Takeaways:

  • The Build Now Act would require the Department of Housing and Urban Development (HUD) to remove 10% of the Community Development Block Grant (CDBG) funding from cities that fail to improve their rate of homebuilding above the national median rate.
  • Cities with the highest rates of growth would receive larger shares of the reallocated CDBG funds.
  • The bill would allow metropolitan areas two years to start building homes before HUD determines their level of CDBG funding.
  • The legislation excludes cities where the median home value is below the national median or cities that issued an emergency disaster declaration in the last year.
  • Sen. Tim Scott, Chairman of the Senate Banking Committee, praised the bipartisan approach of Sen. Kennedy and Sen. Elizabeth Warren in introducing the Build Now Act.
  • The Build Now Act has the support of organizations such as the Niskanen Center, the National Association of Home Builders, and the Mortgage Bankers Association, as well as Harvard University Professor of Economics Edward Glaeser.
  • Sen. Kennedy has been a longtime advocate for making homeownership easier for families, frequently raising the issue during recent hearings.

Statistics:

  • The median age of a first-time homeowner in America today is 38 years old.
  • The federal government's Community Development Block Grant (CDBG) funding would be tied to cities' rates of home construction under the Build Now Act.
  • 10% of CDBG funding would be removed from cities that fail to improve their rate of homebuilding above the national median rate.
  • Cities with the highest rates of growth would receive larger shares of the reallocated CDBG funds.
  • The legislation excludes cities where the median home value is below the national median or cities that issued an emergency disaster declaration in the last year.

Sources:

  • *Build Now Act*, Sen. John Kennedy (R-Louisiana)
  • * ROAD to Housing Act of 2025*, Sen. John Kennedy (R-Louisiana)
  • *Senate Banking Committee Markup of ROAD to Housing Act*, Sen. Tim Scott (R-South Carolina)
  • *Niskanen Center*, Alex Armlovich, Senior Housing Policy Analyst
  • *National Association of Home Builders*, Buddy Hughes, Chairman
  • *Mortgage Bankers Association*, (no specific quote or date provided)
  • *Harvard University Professor of Economics Edward Glaeser*, (no specific quote or date provided)