WASHINGTON — The US Senate on Thursday overwhelmingly approved legislation aimed at expanding affordable housing construction across the country, passing the bill 89-10. The measure, co-sponsored by Republican Senator Tim Scott of South Carolina and Democratic Senator Elizabeth Warren of Massachusetts, now moves to the House of Representatives for review and voting.
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The legislation seeks to ease the financial burden on Americans facing high housing costs, a challenge further exacerbated by rising oil prices and inflation concerns linked to the ongoing conflict in Iran. The bill provides incentives for the housing and financial sectors to address an estimated shortfall of four million homes nationwide.
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Key provisions include expediting environmental reviews for construction projects, raising loan limits for federally-backed mortgages on multifamily homes, and providing federal block grants to states to finance affordable housing initiatives. Additionally, institutional investors would face restrictions, including a cap of 350 single-family home purchases and a requirement to sell newly built rental housing after seven years, to prevent investors from outbidding individual buyers.
Despite broad support, some housing and financial industry groups have expressed concerns over these investor-related restrictions, warning they could reduce housing availability. President Donald Trump, who has expressed support for low-cost housing, has indicated he may withhold signing bills until Congress passes legislation imposing stricter voting regulations, a measure opposed by Democrats.
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Lawmakers praised the bipartisan effort, noting the bill’s potential to help first-time homebuyers and rural communities. Republican Senator Mike Rounds of South Dakota said the measure would update the USDA rural housing program for the first time in a decade, protecting up to 400,000 Americans from rent increases or displacement. Democratic Representative Andy Kim of New Jersey emphasized that the bill could lower the average age of first-time homebuyers by increasing the supply of affordable homes.
The vote reflects a rare moment of cooperation in a deeply divided Congress, as lawmakers confront economic pressures, rising mortgage rates, and ongoing geopolitical tensions.