WASHINGTON, DC – The U.S. has an estimated shortage of nearly 5 million homes, according to the Brookings Institution, and construction costs -- which are impacted by tariffs -- continue to skyrocket and raise the price of housing.

 

In an effort to increasing the supply of housing nationwide, expand economic opportunity, and strengthen communities, the Senate Banking, Housing and Urban Affairs Committee today unanimously approved the Renewing Opportunity in the American Dream (ROAD) to Housing Act.

 

This bipartisan bill, backed by U.S. Senator Jack Reed (D-RI) seeks to expand and preserve the supply of houses and apartments, reduce barriers to homeownership, and improve affordability and access. If enacted, the comprehensive housing bill would streamline regulations and improve transparency and fairness in the housing finance system. It would also help lower the cost of housing programs and improve their oversight.

 

“Unaffordable housing is a drag on our economy and is holding too many hardworking Americans back in all fifty states. The status quo is unacceptable and the need for action is urgent so I’m glad that my colleagues finally agreed to act more vigorously on housing. This bill tackles America’s housing shortage and offers bipartisan solutions to help build more homes and apartments and ensure all Americans can afford a decent place to live. It would boost the production of new housing and help more renters and homebuyers at different income levels afford a place to live, put down roots, and strengthen communities,” said Senator Reed, whose bipartisan bill provisions included the Property Improvement and Manufactured Housing Loan Modernization Act (S. 964, with Sen. Cynthia Lummis) and the Helping More Families Save Act (S. 970, with Sen. Katie Britt). “It cuts red-tape, streamlines regulations to incentivize responsible development, boost housing production, and includes commonsense reforms to ensure consumers are protected.”

 

The ROAD to Housing Act would:

 

  • Provide competitive grants to finance infrastructure in communities that are constructing more housing.
  • Streamline homeless assistance programs, increase funding flexibility, and improve coordination between housing and health services.
  • Lower borrowing costs for the construction of accessory dwelling units and increase borrowing limits for home property improvement and manufactured housing loans.
  • Help more HUD-assisted families save for their financial future.
  • Boost investment in the most cost-effective housing options, such as factory-built homes.
  • Reduce appraisal shortages, improve consumer engagement, and enhance appraisal quality.
  • Promote housing opportunities for veterans.
  • Address neighborhood blight and support communities recovering from natural disasters.
  • Strengthen oversight of housing regulators and streamline housing program coordination.

 

Senator Reed praised the bipartisan leadership of Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) and stressed that the housing package doesn’t take a ‘one-size fits all approach. Rather, the legislation is tailored to ensure that different communities can benefit from different housing tools and solutions in the bill that best meet their needs.

 

Following the vote, Senator Reed delivered brief remarks about the legislation and the provisions he authored. Reed’s remarks can be viewed here.

 

The bipartisan measure has strong backing from a diverse coalition of stakeholder organizations across the country, including the U.S. Conference of Mayors; the National Association of Realtors; the National Association of Homebuilders; the National Low Income Housing Coalition; and Local Initiatives Support Corporation (LISC).

 

Now that the ROAD to Housing Act has been unanimously approved by the Senate Banking Committee, it must be considered and approved by the full U.S. Senate.

 

Reed, who also serves on the Senate Appropriations Committee, recently voted to advance a bipartisan bill to fund the U.S. Department of Housing and Urban Development (HUD) at a higher level than both the U.S. House of Representatives and the Trump Administration.

 

On July 24, the Senate Appropriations Committee advanced the fiscal 2026 spending bill for the Transportation and Housing and Urban Development (THUD) with $80.2 billion in programmatic funding for HUD, which is offset by $6.9 billion in receipts and collections for a net funding level of $73.3 billion. That is significantly higher than the Trump Administration’s proposal of $43.5 billion for HUD in fiscal 2026, a proposed 44 percent reduction at a time of housing crisis. The Trump Administration would eliminate the Community Development Block Grants (CDBG) Program and HOME Investment Partnerships Program, both of which are critical to Rhode Island.