Gallego, Colleagues Push Trump Administration to Release Affordable Housing Construction Funds

WASHINGTON – As President Trump continues to slow-walk a bipartisan housing affordability bill that already passed through Congress, Senator Ruben Gallego (D-AZ) , a member of the Banking, Housing, and Urban Affairs Committee and the Homeland Security and Government Affairs Committee, joined a group of colleagues in urging the president to unlock community development tools and promptly release $750 million in federal housing construction funds. Last month, Congress passed the bipartisan 21st Century ROAD to Housing Act to boost the nation’s housing supply, improve housing affordability, and strengthen oversight and efficiency of federal housing programs and regulators. Instead of signing the law, which passed with veto-proof majorities, President Trump is sitting on it. With housing prices near record highs, the Trump administration is also sitting on approximately $750 million in housing construction funds available under the Capital Magnet Fund (CMF), Housing Trust Fund (HTF), and Housing Production-Financial Assistance Awards (HP-FA) programs. These federal funds can be leveraged by state and local organizations to develop, preserve, rehabilitate, and increase the supply of affordable housing. Together, these programs strengthen communities, revitalize neighborhoods, create jobs, and ensure more Americans can afford a high-quality home at a decent price that fits their budget. The housing affordability crisis is compounded by the fact that President Trump’s policies – including his reckless tariffs and war with Iran – have increased the cost of construction and slowed the pace of building new affordable housing units nationwide. Senator Gallego and 22 of his colleagues, led by Senator Jack Reed (D-RI), sent a letter to White House Office of Management and Budget (OMB) Director Russell Vought demanding that the Trump Administration release housing construction funds without further delay. “We write to urge you to immediately direct the Department of Housing and Urban Development and the Department of the Treasury to release approximately $750 million in housing construction funds available under the Capital Magnet Fund (CMF), Housing Trust Fund (HTF), and Housing Production-Financial Assistance Awards (HP-FA) programs,” the Senators wrote , noting that release of the funds could help build or rehabilitate over 63,000 homes at no cost to American taxpayers. “Today, Americans are suffering through a housing affordability crisis. Single-family home prices and the average age of first-time homebuyers hit record highs last year, while more households are paying unsustainable amounts of rent than ever before. This crisis is nationwide: home prices have surged 40% in Texas, 43% in Iowa, 54% in Georgia, and 65% in Maine over the past six years – far outpacing wages and overall inflation. You have the ability to increase our nation’s housing supply and help address this crisis. With that in mind, we urge you to direct the release of these funds without any further delay,” the letter continued . Find the full text of the letter HERE .