Why It Matters

Housing affordability has become a growing concern in recent years, according to a new Congressional Research Service (CRS) report that cites rising home prices and rents, higher mortgage interest rates, rising property insurance costs, and housing supply constraints. ​

The report analyzes S. 2651, the ROAD to Housing Act of 2025. The bill received unanimous, bipartisan committee approval on Aug. 1, 2025. The 21st Century ROAD to Housing Act, enacted on July 11, incorporates many of its provisions, while removing, adding, or modifying others. The enacted law has no provisions corresponding to Sections 211, 505, and 704 of S. 2651.

The Big Picture

S. 2651 contains eight titles and 40 sections addressing housing supply, manufactured housing, rental assistance, federal housing programs, veterans housing, and oversight. The Senate Banking, Housing and Urban Affairs Committee approved the legislation unanimously, 24-0, on July 29, 2025, in what a committee press release described as its first bipartisan housing markup in more than a decade.

Key provisions examined by CRS include:

  • Housing supply (Title II): Would tie a portion of Community Development Block Grant funding to housing production, increase the allowable public welfare investment limit for certain banks from 15% to 20% and streamline federal environmental reviews for qualifying housing projects.
  • Manufactured housing (Title III): Would modify the federal definition of a manufactured home, establish a competitive grant program for manufactured home communities and require a study of modular building codes.
  • Program reform (Title V): Would reauthorize or modify the HOME Investment Partnerships Program, Community Development Block Grant Disaster Recovery program, Rural Housing Service and Continuum of Care program.

CRS identifies competing views on environmental review requirements. Supporters of streamlining argue that federal reviews increase development costs and delays, while opponents warn that reducing oversight could weaken protections for the environment and public health.

The president's fiscal 2026 budget proposed eliminating funding for the HOME program, which provides federal assistance for affordable housing development and rehabilitation. The Senate incorporated an amended version of the ROAD to Housing Act into the National Defense Authorization Act as S. 2296, which passed the Senate on Oct. 9, 2025.

The Bottom Line

S. 2651 remains on the Senate Legislative Calendar, but much of its policy agenda advanced through separate legislation. The enacted 21st Century ROAD to Housing Act incorporates numerous provisions from the earlier proposal while excluding or changing others. Notably, the final law does not contain direct counterparts to S. 2651's Section 211 on housing near transit, Section 505 on homelessness program reform, or Section 704 on NeighborWorks oversight.

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