WASHINGTON — The most significant federal housing legislation in decades became law early Saturday after President Donald Trump declined to sign or veto the bipartisan 21st Century ROAD to Housing Act, allowing it to take effect under the Constitution without his signature.
The measure passed Congress with overwhelming bipartisan support and is expected to reshape federal housing policy through dozens of targeted reforms intended to expand housing supply, strengthen local development tools and improve affordability nationwide.
The legislation cleared the U.S. Senate on June 22 and the U.S. House of Representatives on June 23 before becoming law July 10.
Although Trump publicly announced he would not sign the measure because Congress refused to approve the SAVE Act, he also did not veto it, allowing the bill to become law automatically after the constitutional review period expired.
Housing advocates, local governments and many lawmakers described the legislation as the most comprehensive federal housing package enacted in more than three decades.
Rather than relying on a single sweeping policy, the law includes dozens of individual reforms, pilot programs, financing mechanisms and regulatory changes intended to encourage new housing construction and improve access to affordable housing.
The National League of Cities, which has long urged Congress to increase federal support for local governments confronting housing shortages, welcomed the legislation’s enactment.
“The National League of Cities thanks Senator Tim Scott, Senator Elizabeth Warren, Rep. French Hill and Rep. Maxine Waters for their leadership on the bipartisan 21st Century ROAD to Housing Act,” said NLC President Kevin Kramer, a Louisville, Kentucky, councilmember.
Kramer said the law “expands the attainability of homeownership for residents across the country and strengthens the tools that local governments need to support their residents in achieving this goal.”
He added, “We are particularly pleased that this legislation preserves local zoning authority, avoids unfunded mandates for local governments and aligns with local infrastructure needs. Local governments will have the tools they need to be an effective partner to the federal government as this is rolled out across the country. Starting today, local leaders are ready to put this law into action to meet the housing needs of their residents.”
National League of Cities CEO and Executive Director Clarence E. Anthony likewise praised the legislation’s bipartisan support.
“We have seen strong, bipartisan efforts in Congress and the Administration to address the housing crisis through pragmatic, locally informed policy solutions that local leaders will put to use at the local level,” Anthony said.
“With this legislation, Congress has delivered the most comprehensive housing package in more than three decades. On behalf of NLC and the more than 19,000 cities, towns and villages we represent, we celebrate the 21st Century ROAD to Housing Act becoming law on July 10.”
California Sen. Alex Padilla sharply criticized Trump’s refusal to sign the legislation while noting that the bill would become law regardless.
“Donald Trump and his reckless policies have made gas, groceries, and housing much more expensive,” Padilla said. “And when given the opportunity to deliver the bipartisan housing relief Americans have been waiting for, Trump instead threw a tantrum and refused to sign it into law.”
Padilla continued, “The bipartisan 21st Century ROAD to Housing Act will become law thanks to Congress and the Constitution — and in spite of Donald Trump’s inaction. This compromise bill is a step in the right direction, helping to expand homeownership opportunities and address the national housing affordability crisis nationwide.”
Padilla highlighted several provisions included in the final legislation that he said will directly benefit California and vulnerable populations nationwide.
“I am proud that the new law will include my provision to ensure veterans experiencing homelessness and receiving VA disability benefits can still qualify for housing assistance,” Padilla said. “This package will also help Californians rebuild their homes and lives after disasters, unlock millions of dollars in federal funding for local governments for new housing construction, and strengthen rural housing programs that support millions of Americans.”
He added, “While this legislative package provides additional resources to invest in housing, our work is far from over. I will continue pushing to address the housing crisis facing California and the entire nation through comprehensive legislation like my Housing for All Act.”
Among the legislation’s California-specific provisions is Padilla’s Housing Unhoused Disabled Veterans Act, which permanently excludes disability payments received by homeless veterans from income calculations used to determine eligibility for housing assistance through the HUD-VASH (Housing and Urban Development Veterans Affairs Supportive Housing) program.
The measure was co-led by Sens. Dave McCormick, Ruben Gallego and Katie Britt.
The legislation also modernizes the federal definition of manufactured housing by allowing modular and prefabricated homes built without permanent chassis. Supporters argue that eliminating the permanent steel chassis requirement will reduce construction costs, provide greater design flexibility and make manufactured housing more compatible with urban neighborhoods and multifamily developments.
Another provision expands how local governments may use Community Development Block Grant funding by permitting municipalities to finance the construction of new housing for the first time.
The bill also establishes new incentives designed to encourage housing production. Under one provision, high-cost communities that consistently fail to add housing could see a 10% reduction in Community Development Block Grant funding, while jurisdictions producing housing at higher rates could receive the redirected funds.
Housing policy experts cited in reporting on the legislation suggested that the financial impact may be modest for large cities but that the policy establishes an important new federal expectation that local governments actively facilitate housing production.
The law further codifies the Community Development Block Grant-Disaster Recovery program, providing a more permanent framework for long-term disaster recovery funding. Although the legislation does not appropriate additional money for disaster recovery, supporters say formalizing the program should allow the federal government to respond more quickly following major disasters and provide greater certainty for affected communities.
Public housing agencies will also receive expanded authority through an increase in the federal Rental Assistance Demonstration program cap, allowing an additional 100,000 public housing units to participate in financing arrangements intended to support rehabilitation and modernization projects.
Some affordable housing advocates have expressed concerns about tenant protections under the program, while supporters argue it removes a longstanding bottleneck that has slowed public housing improvements.
The legislation additionally places new limits on future purchases of single-family homes by large institutional investors, although the restrictions are narrower than earlier proposals and exempt existing holdings, new construction, renovations and several other categories. Housing analysts have suggested the provision may have limited impact in California, where institutional investors own a relatively small share of single-family housing compared with other states.
Housing advocates have characterized the bill as both historically significant and inherently limited.
While no single provision is expected to solve the nation’s housing affordability crisis, supporters argue the cumulative effect of dozens of targeted reforms could gradually increase housing production and improve affordability over time.
The legislation also reflects a broader political shift.
The bill originated through collaboration between Republican Sen. Tim Scott of South Carolina and Democratic Sen. Elizabeth Warren of Massachusetts, demonstrating bipartisan agreement that housing shortages have become a national economic concern rather than solely a local issue.
Housing organizations involved in advocating for the legislation likewise emphasized that its passage resulted from extensive coalition-building among local governments, housing advocates, industry groups and planning organizations.
They argue that the measure represents not the conclusion of federal housing reform but the beginning of a larger federal role in addressing housing affordability and expanding the nation’s housing supply.
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There’s essentially no additional money in this bill to actually build housing, and no locale is being forced to change their zoning, etc.
As far as the trailers that will now have essentially “no chassis”, just try not to be behind one when it’s being delivered somewhere else on I-80. (Bad enough that we occasionally get rocks in our windshields – but now, we’ll get an entire disintegrating trailer park in our windshields at 80 mph.)
Essentially?
Good point – I looked at what you’re referring to, again. I guess they stick a temporary chassis under the thing when they’re moving it?
(Hopefully, they strap it to the temporary chassis pretty well. Otherwise, Todd’s dream of replacing freeways with “housing” will immediately come true.)
Reminds me of a recent visit to the dump – they charge you extra now, if you don’t cover your load.
But seriously, this does seem like an appropriate regulation to change. Once they’re in place, they almost never move.
(I guess this would essentially ensure that they never move. Hopefully, my next-door neighbor won’t plant one in their backyard.)
“Rather than relying on a single sweeping policy, the law includes dozens of individual reforms, pilot programs, FINANCING MECHANISMS…” (emphasis mine). There are also financial incentives for local communities. It’s a pity Davis recently turned down an opportunity to be in line for Federal Assistance.
When Carter was President the price of peanuts didn’t go down. When W. Bush was President the price of oil didn’t go down until Congress finally acted late in his second term. When Trump has been president the price of housing hasn’t gone down forcing Congress to finally act.
It’s fascinating that Trump wouldn’t sign the bill but couldn’t veto it either because he would have been overridden.
It’s a new twist on Trump’s “She’s for they he’s for you” slogan. Certainly true if you are in the rental business like the Trumps.