On July 29, the Senate Committee on Banking, Housing, and Urban Affairs voted 24-0 vote to advance the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025. The landmark bipartisan legislation, spearheaded by Chairman Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.), represents the first comprehensive housing package to emerge from the committee in over a decade and now moves to the full Senate for consideration.
Senate committee passage represents rare moment of unity
Tuesday’s executive session marked a rare moment of bipartisan cooperation in an increasingly polarized Congress. With all 13 Republicans and 11 Democrats voting to advance the 315-page omnibus bill, the committee demonstrated that housing has emerged as a unifying issue, transcending the current partisan divide.
“Many people around the country are frustrated with the way we do American politics, and wonder, is there any issue that brings this nation together?” Chairman Scott declared during the markup session. “And I’m here to say, ‘Hallelujah! We have found one. It is housing'”.
Senator Warren emphasized the collaborative nature of the effort, noting that “the package includes proposals from every single member of this committee”. The legislation incorporates at least 27 previously introduced pieces of legislation, with 23 of those having bipartisan sponsors, demonstrating the all-inclusive approach that made unanimous passage possible.
Bill addresses multiple aspects of Federal housing policy
The ROAD to Housing Act tackles America’s housing shortage through four primary pillars: expanding housing supply, improving affordability and access, advancing accountability and fiscal responsibility, and strengthening oversight of federal housing programs. With the nation facing an estimated shortage of nearly 4.7 million homes and median home prices reaching $410,800, the legislation addresses what many economists consider the most pressing domestic policy challenge.
The bill’s 40 provisions span everything from direct financial assistance to regulatory reform. The longest section, “Building More in America,” contains 13 provisions designed to incentivize construction nationwide through competitive grants, streamlined approvals, and reduced regulatory barriers. Other sections address manufactured housing reform, disaster recovery improvements, veterans’ housing programs, and appraisal modernization.
Key provisions target multiple barriers
Among the bill’s reforms is an increase in the Public Welfare Investment cap for banks from 15 percent to 20 percent, potentially unlocking billions in additional private capital for affordable housing projects. This adjustment could significantly expand financing options for developers working on Low-Income Housing Tax Credit (LIHTC) properties.
The manufactured housing provisions represent another significant change, eliminating the federal requirement for permanent steel chassis on HUD Code homes through a voluntary state opt-in process. Industry experts estimate this reform could reduce costs by $5,000 to $10,000 per unit while enabling more flexible designs and multi-story construction.
Streamlining environmental review emerged as a key aspect of the bill, with provisions designed to accelerate approval timelines for small-scale and infill housing projects. The reforms address the growing recognition that lengthy review processes contribute significantly to housing costs and construction delays.
The Build Now Act, incorporated within the Act, creates a new incentive structure linking Community Development Block Grant (CDBG) funding to local housing production. Jurisdictions demonstrating strong housing growth would receive bonus funding, while those with consistently poor performance could face a 10 percent reduction in CDBG allocations.
The industry responds
The housing industry responded to the committee’s action positively. The National Association of Home Builders praised the legislation as containing “favorable provisions aimed at zoning and land-use policies, rural housing and multifamily housing that will stimulate construction of sorely needed housing”.
The Mortgage Bankers Association’s President Bob Broeksmit commended the committee’s work, stating that “many of the bill’s provisions will help to boost housing supply for both owning and renting, streamline federal housing program offerings, and make small-dollar mortgage lending more available to consumers”. The MBA indicated it would continue engaging with senators to refine certain provisions dealing with lender liability and appraisal reforms ahead of floor consideration.
Local government organizations also voiced support, with the U.S. Conference of Mayors welcoming the legislation despite some concerns about potential changes to federal funding formulas.
Path forward presents challenges
The ROAD to Housing Act now moves to the Senate calendar for consideration by the full Senate. However, the path to final passage remains complex, with several procedural and political hurdles ahead.
The Senate Majority Leader, John Thune (R-S.D.), will determine when the bill receives floor time. The bill’s 315-page length and comprehensive nature could generate extended debate, particularly around environmental review reforms and federal-local relationships that some senators may find controversial.
Even with successful Senate passage, the legislation would face additional challenges in the House of Representatives, where housing policy has received less comprehensive attention. The bipartisan nature of the Senate committee vote could inspire similar cooperation in the House. However, some provisions, particularly those involving federal incentives for local zoning reform, may face a different reception in a chamber where members are more in tune with local government concerns.
The Trump administration’s approach to the legislation will likely prove crucial. While the bill’s focus on reducing regulatory barriers aligns with traditional Republican priorities, the administration’s stated plans for deep HUD budget cuts could conflict with the call for new HUD administered programs in the legislation.
The implementation challenge extends beyond federal administration capacity to state and local governments that would need to adapt to new incentive structures and program requirements. The bill’s success may ultimately depend on alignment between federal policy changes and ground-level implementation.
Summing it up
The ROAD to Housing Act represents the most comprehensive federal housing policy initiative in over a decade, with potential to reshape how America approaches housing development, financing, and regulation. Yesterday’s unanimous committee passage provides strong momentum for addressing the nation’s housing shortage, though significant legislative and implementation challenges remain before the legislation’s ambitious vision becomes reality.
