[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3600 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 3600
To require the President to declare a national housing emergency and
invoke the Defense Production Act to incentivize residential housing
production, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 8 (legislative day, January 7), 2026
Ms. Slotkin introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To require the President to declare a national housing emergency and
invoke the Defense Production Act to incentivize residential housing
production, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Housing Emergency Act of
2026''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the President should declare a national emergency with
respect to housing under section 201 of the National
Emergencies Act (50 U.S.C. 1621); and
(2) to address that emergency, the President should use the
authorities provided by the Defense Production Act of 1950 (50
U.S.C. 4531 et seq.) to increase the supply of materials
produced in the United States that support the construction and
rehabilitation of housing.
SEC. 3. FINDINGS.
Congress finds that--
(1) housing is the largest expenditure for most households
and accounts for 45 percent of the Consumer Price Index;
(2) approximately 75 percent of households in the United
States are unable to afford a median-priced home with housing
demand outpacing available supply;
(3) there is a shortage of at least 4,000,000 housing units
due to low levels of residential construction and compounding
regulations;
(4) the housing unit deficit is projected to increase to
nearly 10,000,000 units by 2035;
(5) the median sales price for existing single-family homes
has risen over 50 percent since the onset of the COVID-19
pandemic;
(6) rapid increases in rents, combined with slower income
growth, worsen housing affordability in metro and nonmetro
areas;
(7) the share of first-time homebuyers has decreased to a
record low of 21 percent in 2025, with the average age of a
first-time homebuyer increasing to a record high of 40 years
old;
(8) Federal, State, and local overregulation accounts for
approximately 25 percent of the cost to build a new single-
family home;
(9) the housing supply shortage compromises the economic
and national security of the United States; and
(10) investing in closing the housing unit shortfall can
unlock nearly 2,000,000 jobs, including over 700,000
construction jobs, and add nearly $2,000,000,000,000 to the
gross domestic product through 2035.
SEC. 4. EXPANSION OF DEFENSE PRODUCTION ACT OF 1950 TO ADDRESS HOUSING.
The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is
amended--
(1) in section 2(a)(5) (50 U.S.C. 4502(a)(5)), by inserting
``and residential construction and rehabilitation'' after
``domestic energy''; and
(2) in section 702(14) (50 U.S.C. 4552(14)), by inserting
``, housing,'' after ``programs for military''.
SEC. 5. REMOVING REGULATORY BARRIERS TO HOUSING PRODUCTION.
During the period that a national emergency described in section 2
is in effect--
(1) sections 212(d), 218(g), and 220 of the Cranston-
Gonzalez National Affordable Housing Act of 1990 (42 U.S.C.
12742(d), 12748(g), 12750), and any regulation or guidance
implementing those sections, shall have no force or effect;
(2) section 108(e) of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4707(e)), and any
regulation or guidance implementing that section related to
housing development, shall have no force or effect;
(3) no housing preservation or infill project funded by the
Department of Housing and Urban Development shall be subject to
any Federal environmental review requirements;
(4) notwithstanding any other provision of law, if more
than 1 Federal program is used for the development or
rehabilitation of housing, including any Federal agency action
that contributes to the development or rehabilitation of
housing, only 1 environmental review shall be carried out for
the project pursuant to the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.);
(5) a choice limiting action described in section 58.22 of
title 24, Code of Federal Regulations, or any successor
regulation, shall be permitted for any housing project funded
by the Department of Housing and Urban Development;
(6) any provision of law (including regulations) or
guidance that prohibits the duplication of benefits under
community development block grant disaster recovery grants for
the development or rehabilitation of housing, including section
312 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5155), shall have no force or effect;
and
(7) the Secretary of Housing and Urban Development and the
Director of the Office and Management and Budget shall expedite
the waiver process under section 70914 of the Build America,
Buy America Act (Public Law 117-58; 135 Stat. 1298) such that
the Secretary is required to complete the waiver process within
30 days of publishing a written justification under subsection
(c) of such section 70914, and if the Secretary does not
complete the review within that timeframe, the waiver shall be
deemed to be issued.
SEC. 6. MINIMUM RESIDENTIAL CODE STANDARD.
During the period that a national emergency described in section 2
is in effect, housing constructed or rehabilitated shall meet the
requirements of--
(1) the 2009 International Residential Code, or an
equivalent code, including amendments adopted by State, local,
Indian tribal, or territorial governments for site-built
housing; or
(2) part 3280 of title 24, Code of Federal Regulations, for
manufactured housing.
SEC. 7. PRO-GROWTH REQUIREMENT.
(a) In General.--Not later than 30 days after the date of enactment
of this Act, the Undersecretary for Policy Development and Research at
the Department of Housing and Urban Development and the Undersecretary
for Policy at the Department of Transportation shall establish a
funding condition to be known as the ``Pro-Growth Requirement'', which
shall be applied as a required funding condition in order for a State
or unit of general local government to receive Federal block grant
funding, such as surface transportation block grant program funding
under section 133 of title 23, United States Code, during the period
that a national emergency described in section 2 is in effect.
(b) Factors.--The following factors shall be met in order for a
grantee to be in compliance with the Pro-Growth Requirement described
in subsection (a):
(1) A positive level of housing growth measured against the
previous year based on the Building Permit Survey and the
Address Count Listing Files published by the Bureau of the
Census within the jurisdiction of the grantee.
(2) The grantee has taken action to remove barriers to
housing development and rehabilitation, such as--
(A) reducing minimum lot size requirements;
(B) allowing manufactured homes in areas zoned for
single-family residential homes;
(C) eliminating or reducing off-street parking
requirements;
(D) allowing duplexes, triplexes, or fourplexes in
areas zoned for single-family residential homes;
(E) establishing density bonuses;
(F) allowing a single staircase for residential
structures up to 5 stories;
(G) enacting high-density single-family and
multifamily zoning;
(H) streamlining or shortening permitting processes
and timelines;
(I) allowing the conversion of office units into
residential units;
(J) donating vacant public land for affordable
housing development;
(K) allowing accessory dwelling units, including
detached accessory dwelling units, on all lots with
single-family homes;
(L) establishing transit-oriented development
zones;
(M) using property tax abatements to enable higher
residential density; or
(N) enacting and implementing other laws or rules
with a positive anticipated impact on housing supply.
(3) The comprehensive housing affordability strategy and
community development plan issued by the grantee under part 91
of title 24, Code of Federal Regulations, or any successor
regulation (commonly referred to as a ``consolidated plan'')
identifies clear, measurable objectives for housing growth.
(c) Appeal Process.--A grantee described in subsection (a) is
allowed an appeal process relating to compliance with the Pro-Growth
Requirement described in that subsection with the agency distributing
an applicable grant if the recipient can display measurable actions
taken to increase housing supply and growth within their jurisdiction.
SEC. 8. PROHIBITION.
During the period that a national emergency described in section 2
is in effect, no State or unit of general local government shall impose
or implement a land-use regulation in a manner that imposes a
substantial burden on the construction or rehabilitation of residential
housing.
SEC. 9. TERMINATION.
A national emergency described in section 2 shall terminate on the
earlier of--
(1) the date on which 4,000,000 additional residential
housing units, as compared to the date of enactment of this
Act, are constructed or rehabilitated in the United States; or
(2) October 1, 2031.
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