The U.S. House Financial Services Committee’s Housing and Insurance Subcommittee is holding a hearing, chaired by Subcommittee Chair Mike Flood, on how rural communities can better leverage private-sector investment and community-led solutions to meet local housing needs. Flood’s prepared opening remarks highlighted rural-specific cost pressures such as higher transportation costs for materials, longer supply chains, and limited local contractor capacity that can delay or halt projects. He also argued that federal requirements can disproportionately increase the cost of housing projects using federal dollars, identifying environmental review, Build America Buy America, Davis-Bacon reporting and prevailing wage requirements, and Section 3 contracting requirements as key drivers. The hearing also covers the U.S. Department of Agriculture’s Rural Housing Service programs under Title V of the U.S. Housing Act of 1949, including Section 515 rental housing for low-income families, the elderly and people with disabilities, Section 538 financing to expand rural housing supply for low- and moderate-income people, and Section 502 direct loans for low-income borrowers to purchase or rehabilitate a primary residence, alongside discussion of a draft bill from Ranking Member Cleaver proposing changes to these programs.
U.S. Financial Services Committee 2025-06-12
U.S. House Financial Services Committee’s Housing and Insurance Subcommittee examines barriers to building housing in rural America
The U.S. House Financial Services Committee’s Housing and Insurance Subcommittee is holding a hearing on enhancing rural housing through private investment and community solutions. Subcommittee Chair Mike Flood highlighted rural cost pressures and federal requirements that increase project costs. The hearing also reviews U.S. Department of Agriculture’s Rural Housing Service programs and a draft bill proposing changes to these initiatives.