Washington, D.C. – Senators Tim Scott (R-S.C.) and Elizabeth Warren (D-Mass.) have introduced the "Renewing Opportunity in the American Dream to Housing Act of 2025" (ROAD to Housing Act), a significant bipartisan legislative effort aimed at tackling the nation's pressing housing affordability crisis. The bill seeks to increase housing supply, reduce homelessness, and expand homeownership by encouraging local governments to streamline their zoning and land-use regulations. This initiative marks a notable collaboration between a conservative Republican and a progressive Democrat on a critical domestic issue.
Political commentator Matthew Yglesias highlighted the nuanced approach of the legislation, stating in a recent tweet, "Housing is still primarily a state/local issue and Scott & Warren are sticking by congress' longstanding reluctance to do any hard preemption." However, Yglesias also noted a shift, adding that the senators "are addressing the main federal issues, and kind of breaking the seal on localism with the CDBG/FTA provisions." This suggests a strategy of federal incentives rather than mandates to influence local housing policy.
The ROAD to Housing Act is designed to change federal housing programs to incentivize lower-level governments to permit more housing construction. While the bill does not directly preempt local authority, it aims to use federal resources to encourage the reduction of regulatory barriers that currently hinder development. This approach aligns with broader federal initiatives that seek to leverage grants and funding to promote more permissive zoning practices.
Key to this strategy are provisions related to federal funding mechanisms, including the Community Development Block Grant (CDBG) program and incentives linked to federal transportation funds (FTA). Recent federal housing initiatives have proposed tying competitive grant funding, including from infrastructure and transportation programs, to local zoning and land-use policies. This means cities with less restrictive zoning could receive higher scores in competitive grant applications, effectively using federal dollars to encourage local reform.
The Community Development Block Grant (CDBG) program, administered by HUD, provides flexible funding to states and localities for community development. Discussions and proposals have emerged suggesting CDBG funds could be used to cover costs associated with reforming local land-use and zoning regulations. This financial incentive aims to empower local governments to undertake necessary reforms without solely relying on their own budgets.
The bipartisan nature of the ROAD to Housing Act, coupled with its focus on incentivizing local zoning reform through federal funding, represents a significant development in addressing housing affordability. By leveraging existing federal programs like CDBG and linking federal transportation funds to local land-use policies, the legislation seeks to foster a more responsive and efficient housing market across the United United States.