Congress passes the largest housing affordability bill in decades

June 24, 2026 - 11:16

An expansive bipartisan bill aimed at lowering housing costs by dramatically increasing the supply of homes has cleared both chambers of Congress. The legislation, now on its way to the president for a signature, is being hailed as the most significant federal action on housing affordability in decades.

The bill combines a mix of tax incentives for developers who build affordable units, grants for local governments to update zoning laws, and new funding for first-time homebuyer assistance. Proponents argue that the core problem is a severe shortage of available homes, which has driven prices and rents to record highs across the country. By targeting the supply side, the bill seeks to ease that pressure over the next several years.

Key provisions include a five-year expansion of the Low-Income Housing Tax Credit, which experts say could finance the construction of hundreds of thousands of new rental units. It also creates a new grant program for cities and counties that agree to streamline permitting and reduce minimum lot sizes. Opponents in both parties raised concerns about the overall cost, which the Congressional Budget Office estimates at roughly 80 billion dollars over a decade. Some also warned that the effects on prices will be slow to materialize, and that the bill does little to address immediate rental assistance needs.

Supporters, however, celebrated the passage as a rare moment of compromise on a pressing economic issue. The White House has indicated the president will sign the bill into law later this week.