The U.S. Senate Committee on Banking, Housing and Urban Affairs published a minority release outlining a new bipartisan “Build Now Act” introduced by Ranking Member Elizabeth Warren and Senator John Kennedy to incentivize communities to increase housing construction by tying Community Development Block Grant (CDBG) funding to housing supply outcomes. The bill is slated for inclusion in the committee’s housing package for markup scheduled for 29 July 2025. The proposal would increase CDBG funding for localities that improve their track record in building more housing and apply a modest adjustment downward when they do not, after a two-year grace period to improve performance. The pilot targets communities with high housing demand and low supply and excludes communities with low housing demand and signs of economic distress, those affected by recent natural disasters, and those without control over zoning and permitting. Using U.S. Census data, performance would be assessed against each community’s own prior results, and communities HUD has notified are at risk of a CDBG cut would receive HUD guidance on how to improve.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-07-25
U.S. Senate Committee on Banking, Housing and Urban Affairs sponsors unveil Build Now Act linking CDBG funding to local housing supply performance
The U.S. Senate Committee on Banking, Housing and Urban Affairs detailed the bipartisan “Build Now Act” by Elizabeth Warren and John Kennedy, linking Community Development Block Grant (CDBG) funding to housing supply outcomes. The bill proposes increased CDBG funding for communities improving housing construction, with reductions for underperformance after a two-year grace period. It targets areas with high housing demand and low supply, excluding those with low demand, economic distress, or recent natural disasters.