What’s in the 21st Century ROAD to Housing Act?

The 21st Century ROAD to Housing Act is slated to become law at midnight on Friday, marking what Sen. Chuck Grassley, R-Iowa, labeled the most substantial housing legislation the United States has seen in decades. The bipartisan bill promotes housing grants and limits corporate investors’ ability to buy up homes, seeking to expand affordable housing options as demand grows.

The bill, which Congress passed last month, is becoming law even though President Donald Trump has refused to sign it in protest of Congress’ failure to pass a voter ID law.

“I will not sign the Housing Bill, which has been fully approved by Congress and sent to the White House, in PROTEST over the fact that the United States Senate is not capable of passing THE SAVE AMERICA ACT,” Trump wrote on Truth Social on Friday.

Legislation passed by Congress goes into effect 10 days after being presented to the president unless he vetoes it. Here’s more about the housing bill and its provisions meant to promote homeownership.

What does the bill do? Without allocating any more government funding, the bill extends certain housing-related policies and tweaks and promotes others. Highlights include:

• Creating a grant program to incentivize local and tribal governments to build housing.

• Expanding access to mortgages under $100,000.

• Excluding Veterans Affairs benefits from veterans’ total income to boost their eligibility for housing assistance.

• Preventing companies that already own at least 350 single-family homes from buying more.

• Barring the Federal Reserve from establishing a central bank digital currency through 2030.

In a joint statement, Sen. Tim Scott, R-S.C., and Sen. Elizabeth Warren, D-Mass., Rep. French Hill, R-Ark., and Rep. Maxine Waters, D-Calif., celebrated the bill’s bipartisanship and called it a victory for American housing and families.

“This bill is the result of years of work to lower costs, expand housing supply, cut red tape, protect taxpayers, and help more Americans achieve the dream of homeownership,” said Scott.

Are we really in a housing crisis? America is short about 4.7 million homes, according to a report from the U.S. Chamber of Commerce. The 2008 recession slowed housing development, and burdensome regulations and tariff-inflated construction costs make homebuilding difficult. The average price of a home has nearly doubled in the last decade, the report noted, and income increases aren’t keeping up.

The average U.S. mortgage is currently higher than it was during the 2008 recession, according to the chamber. USAFacts writes that 33% of American households, about 42 million people, spent more than a third of their income on housing in 2024.

An April congressional report noted that some housing data is mixed. While there are fewer vacant homes than ever in the past 45 years, the ratios of homes per person and per household have been steady since the 1980s. Housing supply varies by location, and low-income renters are most affected by dwindling supply, the report said.

Norbert Michel, vice president and director of the Cato Institute’s financial center, said affordability is a problem, but he rejects the notion of a U.S. housing crisis. Michel told WORLD that while certain areas have housing shortages, there is no nationwide lack.

“Every bill that Congress passes that has anything to do with housing, there’s always a crisis,” Michel said.

Michel and researcher Jerome Famularo write that instead of comparing family income to total home price, it’s fairer to compare it to median mortgage payments. Such a comparison shows the proportion of income spent on mortgage payments remains about the same as in the 1990s. The authors propose regulations should relax on the local level where needed, not nationwide.

What’s the deal with corporations buying single-family homes? The provision barring companies that own more than 350 single-family homes aims to promote individual home ownership and lower prices. In January, Trump signed a similar executive order to prohibit large companies from buying homes.

Research from Parcl, a real estate investment platform, found that about 140 companies fit the 350+ category. Combined, these companies own about 530,000 homes, which is only 0.59% of single-family housing supply. The proportion increases for metro areas in the South and Midwest, sitting at around 3%, according to Parcl. In Atlanta, the rate is up to 4%, with 1 in 10 homes in some Atlanta ZIP codes owned by a large company.

Michel disagrees with the provision, arguing the federal government shouldn’t restrict investors. Still, he said few homes are owned by investors, so the rule won’t have a major impact.

Does Trump oppose the bill? Although Trump has not signed the legislation, he hasn’t vetoed it either. Trump told reporters last week that the housing bill includes more provisions that Democrats wanted than he’d prefer, but he noted it is largely bipartisan.

“It’s a yawn,” Trump said from the Oval Office. “Some people say it’s wonderful. To me, compared to the SAVE America Act, just about everything is a big yawn.”

Warren, one of the bill’s Democrat authors, condemned Trump in a post on X, writing that he doesn’t care if Americans can buy homes.

What are others saying? The National Housing Conference applauded lawmakers for passing the legislation. David Dworkin, the group’s president and CEO, said in a statement that the bill reduces barriers and fixes outdated policy, expanding housing opportunities.

“Their work demonstrates that bipartisan cooperation remains possible and that Congress can take meaningful action to address the nation’s housing needs,” Dworkin said.A