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Department of Interior Announces Investment in Parks and Outdoor Recreation Interior has announced an investment of $461 million for parks, playgrounds, trails, and open spaces that bring communities together. These funds will be matched at least 1:1, for a total outdoor recreation investment of more than $900 million.
Department of Interior Announces $733 Million for Community Support Programs Interior has announced that more than 1,900 state and local governments will receive $733 million in funding to support public lands and waters, firefighting, policing, education, and road construction. The funding will come as part of the Payments in Lieu of Taxes program.
EPA Announces Over $270 Million in Brownfields Grants
Grants have been awarded to 190 communities to accelerate the cleanup of polluted sites across the nation. EPA also provided $22.5 million in supplemental funding to 31 high - performing Brownfields Revolving Loan Fund (RLF) grantees for over $270 million in brownfields funding to revitalize American communities.
EPA Seeks to Speed Permitting by Reforming NEPA Comment Letter Process EPA has announced new NEPA comment letter guidance that will more narrowly define the agency’s input role to focus on clean air, water, and land. The new guidance removes questions that address topics like environmental justice, net -zero climate policies, and remedies for historical injustices.
EPA Announced $25.5 Million to Address Wastewater Challenges in Rural, Small, and Tribal Communities
EPA announced $25.5 million in grant funding for technical assistance providers to help small, rural, and Tribal communities address wastewater infrastructure challenges to protect human health and comply with the Clean Water Act. EPA is accepting applications from water technical assistance providers until August 14.
HHS Announces Over $700 Million to Address Mental Illness, Addiction, and Homelessness
HHS announced more than $700 million in behavioral health funding to address addiction and mental illness fueled homelessness. $96 million of the funding will come through the Safety Through Recovery, Engagement, and Evidence -based Treatment and Supports (STREETS) program.
HUD Announces Fair Housing Enforcement
HUD announced fifteen recent fair housing enforcement actions as the Department accelerates civil rights enforcement. They claim to have also reduced a major backlog of cases inherited from previous administrations.
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HUD Announces $193 Million Investment to Address Youth Homelessness This funding will be utilized for developing and implementing projects to increase the efficiency of youth homelessness response systems as well as creating Transitional Housing and Supportive Services projects focused on providing housing with wraparound services to help youth become self-sufficient. Applications for this funding opportunity are due on August 10, 2026.
DOE Announces American Nuclear Supply Chain Loans
The $17.5 billion American Nuclear Supply Chain Loans will help finance five eligible projects sponsored by utilities and energy companies nationwide . The funding will help accelerate the deployment of 10 large-scale commercial nuclear reactors across the United States by up to three years.
DOE Invests $350 Million to Modernize and Restart Coal Plants DOE has selected four coal modernization projects to strengthen coal -based generation, grid reliability, and strategic energy infrastructure. The selected projects will expand and reinvigorate America’s coal fleet through targeted upgrades that increase efficiency, extend plant life, and support reliable baseload power generation.
News Roundup
• Congress passes the largest housing affordability bill in decades — and Trump cancels the signing. NPR
• SNAP rule reversal impacts 23 states: What to know. The Hill • Companies are demanding states cut red tape. Data center-wary voters may think differently. CNBC
• Judge dismisses Trump administration lawsuit over LA sanctuary city policy. The Guardian
• Federal court blocks Trump’s executive order limiting mail ballots. The Washington Post • Supreme Court gives Trump major wins on two immigration cases. CNN • Senate Republicans exclude Democrats’ food aid demand from farm bill. Politico
440 1st Street, NW, Suite 440
Washington, DC 20001
DATE: June 30, 2026
TO: Local Government Clients
FROM: Summit Strategies
RE: OMB Uniform Guidance Proposed Rule
This week, a coalition including NACo, NLC, and USCM hosted a webinar on the proposed rewrite of 2 CFR Part 200 (also known as the Uniform Guidance). The proposed rulemaking is considered the biggest change to the Uniform Guidance since it went into effect in 2014, with huge implications for how local governments administer federal funding. Below is a summary of the webinar.
Comments are due on July 13. Local governments can submit comments here.
Opening Statements
USCM (Dave Gatton – [email protected])
• USCM passed a resolution opposing the proposed rule. USCM has also publicly called for it to be withdrawn and believes it is the most threatening proposal regarding cities in three decades, maybe ever. USCM called for everyone to submit comments in opposition.
GFOA (Emily Brock – [email protected])
• Anyone who receives federal funding is affected by this. The proposed rule is a joint proposal from OMB and every federal rulemaking agency. All agencies (DOT, EPA, DOL, etc) are already preparing for implementation.
• As of this writing, more than 28,000 letters have been submitted on the federal register.
NLC (Dante Moreno – [email protected])
• NLC will provide a template in the coming days. They also believe that local governments need to reach out to their Members to tell them about the importance of the issue.
What is unform guidance?
The Uniform Guidance (also known as UGG also known as 2 CFR Part 200) was established in 2014 and combines “circulars” with directives on federal government spending.
The Uniform Guidance has gone through revisions several times, including in October 2020 and October 2024.
The federal spending process typically works as follows:
• Congress appropriates funding (establishing legislative intent) > • Agencies organize (design reporting requirements and define how to report) > • OMB Oversees (uniform grants guidance and guidelines for audits)
Why do we care?
Billions of dollars in federal funding are allocated to states and local governments to satisfy legislative intent. The Uniform Guidance provides parameters to audit this process (also known as the Single Audit).
Senior level administrators already have internal controls in place (i.e., grant administration, internal controls for grants, indirect cost allocations, SEFA preparation).
Is this new?
No, on August 7, 2025, the Trump Administration issued an Executive Order on “Improving Oversight of Federal Grantmaking” with the goal of implementing in October 2026.
How are things changing?
Historically, federal finance assistance has focused on program performance, financial accountability, and compliance. Moving forward, it will focus on national policy priorities, workforce verification, recipient eligibility, and risk indicators.
OMB’s stated goals are to improve transparency, accountability, and oversight of the federal financial assistance process; clarify that the Uniform Guidance is a regulation, not guidance; and reduce recipient burden.
Proposed rewrite of the Uniform Guidance
The proposed rewrite of the Uniform Guidance represents the most significant overhaul of federal grants administration since the original Uniform Guidance was implemented in 2014.
Potential impacts include expanded termination authority, new stop-work authority, increased payment verification, E-Verify requirements, enhanced subrecipient oversight, greater federal discretion, and increased compliance burden.
Four broad sections
Administrative Changes
• Key change: Uniform guidance becomes regulation
o Current environment
▪ Agency implementation varies
▪ Guidance often subject to interpretation
o Proposed environment
▪ OMB rules automatically apply government-wide
▪ Agencies no longer separately adopt changes
o Risk—less flexibility and more federal control
• Federal agencies could terminate discretionary awards if:
o Not achieving program goals
o Not supporting agency priorities
o No longer in the federal government’s interest
o Questions recipients should ask:
▪ How will priorities be measured?
▪ Can priorities change mid-award?
▪ How should recipients manage this risk?
• Appointment of Senior Level Appointee
o Ensures thorough pre-issuance reviews
o Use independent judgement when evaluating Federal award proposals o Deploys peer review as applicable to ensure advisory recommendations • Implementing Executive Orders in Grant Requirements
o Diversity, Equity, Inclusion, and Accessibility (DEIA) o Gender ideology
o Disparate impact liability
o Faith-based organization protections
o Immigration and workforce verification requirements
o National policy priorities
Pre-award Rules
• Key Change: changes to NOFOs
o Streamlining processes
▪ Agencies must post NOFOs on grants.gov
▪ Applications through grants.gov
▪ Executive summary with key eligibility information and dates on grants.gov
▪ Encourages statement of interest (SOI) pre-application phases in certain cases
o Improving access
▪ Plain language requirements
▪ Minimum posting period of 30 days
▪ Green lights pre-grant technical assistance
• Key change: pre-award risk reviews
o New merit and expanded risk reviews
▪ Merit reviews
• Factors related to: president’s national priorities, “unlawful DEI” ▪ Risk reviews
• Adds to the list: membership and affiliations, questionable practices
▪ Do not pay system for states & E-Verify for all
o Questions recipients should ask:
▪ Will evaluation criteria be defined?
▪ Will agencies provide a list of practices or organizations that raise risk? ▪ Will factors and risks be weighted equally?
o Pass through entities may be required to address:
▪ Actions damaging recipient reputation
▪ Actions damaging agency reputation
▪ Actions damaging federal government reputation
o Questions to ask:
▪ How do you monitor reputational risk?
Grant Administration (post-award) Rules
• Key change: subrecipient monitoring
o New monitoring requirements include:
▪ All down-stream entities must be subaward or contract • Applies to internal transfers to related entities
▪ All subawards and contracts must be logged in SAM.gov • Failure is grounds for termination for non-compliance ▪ Ensure activities do not cause “reputational harm” to recipient or federal agency
▪ Federal agency could terminate award to recipient based on subrecipient actions
o Questions recipients should ask?
▪ How will transfers between government departments be treated? ▪ How does OMB define reputational harm?
▪ Where will there be opportunities to correct SAM.gov reporting? • Key change: new documentation layers
o Payment justifications
▪ Required for recipients and subrecipients other than states • Applicable to advance payments & reimbursements
▪ Recipients submit justification to agency
▪ Subcabinets submit justification to recipient
o Questions recipients should ask:
▪ Will there be limits to length and contents of justification? ▪ Should OMB consider a phase-in?
▪ Will recipients be expected to implement before federal agencies? • Key change: new cost restrictions
o Added cost principles related to:
▪ Advertising and public relations
▪ Conferences
▪ Memberships, subscriptions, and professional activity costs ▪ General cost of government outside of specified grant activities
o Questions recipients should ask:
▪ How clear will the delineation between grant activities and general government activities be?
▪ Will OMB or federal agencies provide further guidance specific to grant programs?
Audit
• Key change: no longer an annual update for compliance supplement o Anticipated audit impacts
▪ No change to single audit but under review
▪ Less frequent guidance for single audit process
• High risk programs
• Compliance factors
o Questions recipients should ask:
▪ What occasions would trigger a compliance supplement update? ▪ Will 2026 compliance supplement remain in effect until a new update is released?
How can local governments respond?
Local governments should take immediate administration actions, including monitoring all grants in their organization, review grants terms and conditions, understand internal policies and practices, inventory subrecipient relationships, access E-Verify readiness, review payment verification processes, enhance monitoring frequency and detail, improve documentation standards, and evaluate exposure across grant portfolios.
Local governments should also consider submitting comments, including what their organizations do well regarding grant administration and internal controls. Comments should also outline how implementation will impact budgets and organization’s future grants and plans.
What does October 1 mean?
There is a lot of uncertainty remaining about the implementation of the proposed rule.
Outstanding questions include:
• Will the guidance affect current grants?
• Will it affect grants awarded OR renewed on or after October 1? • What about renewing grants?
• How to handle retroactivity of affiliates, subsidiaries, or related organizations? • Will there be a list of agencies authorized to not use Grants.gov?
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21st Century ROAD to Housing Act
On Tuesday, June 23rd, the House of Representatives passed the 21st Century ROAD to Housing Act in a 358-32 vote. The Senate had approved the legislation the day before in an 85-5 vote. At 12:01am on July 11th, the bill automatically became law, without President Trump’s signature.
Full bill text can be found here.
The 21st Century ROAD to Housing Act is a landmark housing affordability bill that aims to boost housing supply while lowering costs. To accelerate the construction of affordable housing, the bill streamlines environmental review processes and eliminates costly requirements for manufactured housing. To support the development of new housing and improvements to existing properties, the bill creates new competitive grants and pilot programs while expanding existing ones. It also instructs the Department of Housing and Urban Development (HUD) to draft voluntary guidance on reforming outdated zoning policies and building codes.
To address the rising costs of housing, the bill expands access to small dollar mortgages and increases the Federal Housing Administration’s (FHA) maximum loan limit. It also places limits on the number of single-family homes that institutional investors can own.
Please note that this legislation is extensive. This memo serves to provide an overview. Please contact Summit should you have any questions about specific provisions or would like additional information.
NEXT STEPS
Now that the bill is law, federal agencies will begin to promulgate regulations implementing statutory programs. During the rulemaking process, the public will have the opportunity to review and comment on proposed rules.
KEY PROVISIONS
ENVIRONMENTAL REVIEW
The bill simplifies and streamlines the environmental review process under the National Environmental Policy Act (NEPA). HUD is also granted greater authority to delegate review responsibilities to states, local governments, and Tribes.
The bill expands the number of housing-related activities and federal assistance exempt from NEPA, either through categorical exclusions or designation as “special projects.” Further, the bill eliminates duplicative requirements for projects supported through the HOME Investment Partnerships program.
BUILD AMERICA, BUY AMERICA (BABA) REQUIREMENTS
The bill directs HUD to review implementation of BABA requirements and update its guidance to clarify how BABA applies to projects funded by the HOME Investment Partnerships program.
HOUSING SUPPLY FRAMEWORKS
The bill directs HUD to release technical guidance on best practices for state and local governments reforming permitting, zoning rules, building codes, and land-use policies. The bill also mandates HUD to form a task force to advise the agency on drafting the guidance. State and local compliance with the guidance is considered voluntary and not subject to HUD enforcement.
RENTAL ASSISTANCE DEMONSTRATION (RAD) PROGRAM REFORMS
The bill raises the program cap by 100,000 units and extends protections for tenants in RAD- covered housing.
MANUFACTURED HOUSING
The bill eliminates a rule requiring manufactured homes be built with a permanent steel chassis.
The bill also increases loan limits for manufactured housing loans insured by the FHA.
HUD is granted the primary authority to adopt and enforce energy efficiency standards for manufactured homes. Previously, that authority was legally vested in the Department of Energy.
GRANT PROGRAMS
The bill creates several new competitive grant programs:
• Point-access block residential buildings: This grant would award projects ensuring the safety, feasibility, or cost-effectiveness of buildings that share a single, centralized staircase and elevator.
• Affordable housing planning and implementation: This grant would support states, local governments, Tribes, and regional planning agencies with community development activities, including regulatory reform and transportation accessibility improvements. • Innovation Fund: This $200 million grant would be awarded annually to local governments and Tribes who demonstrate measurable increases in housing supply through innovative reforms. Such activities can include streamlining regulations, optimizing energy efficiency, reducing construction costs, and changing zoning rules. • Housing design and construction: This grant would be awarded to local governments and Tribes to implement pre-reviewed housing designs, with a set-aside of 10 percent for rural areas.
For all competitive grants relating to housing development or preservation, HUD is directed to prioritize projects located within or primarily serving areas designated as Opportunity Zones.
It also establishes pilot programs for:
SUMMIT STRATEGIES ◊ 440 FIRST STREET, NW, SUITE 440; WASHINGTON, DC 20001
• Temperature sensors: This program would provide funds to public housing authorities and federally assisted rental housing to install temperature sensors. • Whole-home repairs: This program would support state, local, and Tribal programs that offer grants and forgivable loans to homeowners and landlords to make repairs and modifications aimed at improving accessibility, habitability, safety, energy efficiency, and weatherization.
• Residential conversions: This program would provide funds to local governments for projects converting commercial or industrial buildings into affordable housing. Priority would be given to areas designated as Opportunity Zones.
Existing grants that are reauthorized include:
• Preservation and Reinvestment for Community Enhancement (PRICE) grants (7- year extension)
• Community Development Block Grant Disaster Recovery (CDBG-DR) (3-year extension)
o The bill also creates a new office within HUD for coordination of disaster-related responsibilities, called the Office of Disaster Management and Resiliency. • HOME Investment Partnerships program
o The bill reforms the program by expanding income eligibility and covered uses, increasing minimum local allocations, and creating new categorical exclusions from NEPA.
Notably, no additional funds were authorized to implement these grants.
The bill makes significant changes to CDBG eligibility and formula funding. Funded activities are expanded to include new construction of affordable housing. Formula funding will be reallocated based on housing costs and vacancy rates.
The bill also incorporates the Build Now Act, which ties recipient’s CDBG funding to their “growth improvement rate” in comparison to housing production benchmarks set by HUD.
Recipients with low rates of housing production may see their funding reduced, while recipients with high rates of housing production are eligible for funding bonuses.
FHA FINANCING REFORMS
The bill expands access to FHA-insured small-dollar mortgages (i.e. mortgages under $100,000) and increases the FHA’s statutory maximum loan limits.
HOUSING TAX CREDITS
The bill does not directly impact the Low-Income Housing Tax Credit (LIHTC). However, there certain provisions could boost investment and streamline projects funded through LIHTC.
The bill lifts the public welfare investment (PWI) cap from 15 to 20 percent, allowing banks to increase investments in projects designed to promote public welfare. Many projects funded
through LIHTC qualify as public welfare investments and may see increased interest from investors.
The bill also streamlines inspections for housing units financed through federal programs such as LIHTC. Units that passed an inspection within the past year will automatically meet Housing Choice V oucher requirements, and new landlords will be able to request advance inspections before securing tenants. This addresses a persistent bottleneck faced when getting tenants into affordable housing units.
LARGE INVESTOR LIMITS
The bill caps institutional investment portfolios at 350 single-family homes. Build-to-rent properties are exempt from this restriction. The bill does not require large institutional investors (e.g. private equity firms) whose portfolios already exceed the 350-home limit to divest or sell off any property.
HUD is directed to create a renter outreach resource to assist renters living in properties owned by a large institutional investor and party to a landlord dispute.
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Sec. 101 – Reforms to Housing Counseling and Financial Literacy Programs Sec. 102 – Federal Guidelines for Point Access Block Buildings Sec. 103 – Exemption on Construction or Modification of Residential Housing Located on an Infill Site This section allows the Department of Housing and Urban Development (HUD) to review the performance of housing counseling agencies and counselors. If a counselor’s performance falls short, HUD may require additional training and provide opportunities to demonstrate improvement. Counselors found to be consistently out of compliance may be subject to enhanced oversight or lose their certification.
This section allows the Department of Housing and Urban Development (HUD) to establish federal guidelines for point-access block buildings (i.e., single-staircase apartments with three or more stories). It also allows HUD to award competitive grants for pilot programs to assess the feasibility of such buildings where they make local sense.
This section exempts from the National Environmental Policy Act of 1969 (NEPA) most Rural Housing Service (RHS)-funded projects regarding the construction or modification of residential housing located on an infill site.
Sec. 104 – Database of Publicly Owned Land
This section requires Community Development Block Grant (CDBG) grantees to maintain a publicly accessible, searchable database identifying undeveloped land owned by the jurisdiction. It also allows grantees to use their CDBG funds to comply with the new database requirement.
Sec. 105 – FHA Small-Dollar Mortgages
Sec. 106 – Temperature Sensor Pilot Program
This section authorizes a HUD pilot program to increase access to small-dollar mortgages with original principal balances of $100,000 or less.
This section establishes a HUD pilot program to award grants to public housing agencies and owners of federally assisted rental housing to install temperature sensors in dwelling units, with the written permission of tenants, to ensure compliance with temperature-related housing quality standards.
Sec. 107 – Housing Supply Frameworks
This section directs HUD to develop best practice frameworks for zoning and land-use policies, helping communities identify and overcome barriers to housing development.
Sec. 201 – Increasing Housing in Opportunity Zones
This section enables the HUD Secretary to give added weight to applicants for competitive HUD grants that are located in, or primarily serve, designated Opportunity Zones to support housing preservation and construction.
CHAIRMAN TIM SCOTTSECTION-BY-SECTION
21st Century ROAD to Housing Act
Title I – Opportunities for Housing
Title II – Building More in America:
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Sec. 202 – Whole-Home Repairs Act
Sec. 203 – Community Investment and Prosperity Act
Sec. 204 – Addition of Affordable Housing Construction as an Eligible Activity This section authorizes a pilot program to offer grants and forgivable loans to eligible recipients to holistically address home repair needs and health hazards to stabilize aging housing stock.
This section increases the Public Welfare Investment cap applicable to banks supervised by the Office of the Comptroller of the Currency and the Federal Reserve from 15% to 20%, which will enhance banks’ capacity to make private investments in affordable housing.
This section adds new construction as an eligible use under HUD’s CDBG program.
Sec. 205 – Better Use of Intergovernmental and Local Development (BUILD) Housing Act This section cuts red tape around environmental reviews, empowering state, local, and tribal governments to streamline reviews and increase housing development.
Sec. 206 – Unlocking Housing Supply Through Streamlined and Modernized Reviews Act Sec. 207 – Grants For Planning and Implementation Associated with Affordable Housing This section right-sizes NEPA review for small and infill housing projects, which will simplify the review process and get projects to construction faster.
This section authorizes a pilot program to offer competitive grants to assist state, local, and tribal governments with regional housing planning and community development activities.
Sec. 208 – Innovation Fund
This section authorizes a seven-year program to offer highly-flexible funding for communities that are building more housing supply, which can be used to improve community infrastructure and build housing.
Sec. 209 – Accelerating Home Building Act
Sec. 210 – Revitalizing Empty Structures into Desirable Environments (RESIDE) Act This section authorizes a grant program to help communities establish pre-approved housing designs, or pattern books, to help streamline and expedite local construction processes and build more homes.
This section authorizes a pilot program within the HOME Investment Partnerships Program to convert vacant and abandoned buildings into attainable housing.
Sec. 211 – Housing Affordability Act
This section requires the Federal Housing Administration (FHA) to increase multifamily loan limits to better match housing market costs and enhance affordability.
Sec. 212 – Rental Assistance Demonstration Program
This section increases the cap for the Rental Assistance Demonstration (RAD) program by 100,000 units and codifies tenant protections.
Sec. 213 – Build Now Act
This section creates a pilot program to incentivize housing development of all types in certain CDBG participating jurisdictions.
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Sec. 301 – Housing Supply Expansion Act
This section updates the federal definition of manufactured housing to include units not built on a permanent chassis to encourage innovation and expand naturally-occurring affordable housing. It also ensures that no energy efficiency standards for manufactured housing take legal effect until adopted by HUD.
Sec. 302 – Modular Housing Production Act
This section requires FHA to assess barriers to FHA-insured lending for modular housing and directs the HUD Secretary to consider modifying the financing draw schedule to encourage modular housing construction.
Sec. 303 – Property Improvement and Manufactured Housing Loan Modernization Act This section updates mortgage lending standards for manufactured housing through FHA and expands access to financing for housing. The section also directs HUD to study the cost-effectiveness and long-term value of supporting housing finance for factory-built housing.
Sec. 304 – PRICE Act
This section authorizes HUD’s Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Program for seven years to provide grants to communities to maintain, protect, and stabilize manufactured housing and manufactured housing communities.
Title III – Manufactured Housing for America:
Sec. 401 – Creating Incentives for Small Dollar Loan Originators This section requires the Consumer Financial Protection Bureau (CFPB) to issue a report to Congress studying the effect of various aspects of loan originator compensation on the availability of small-dollar mortgage loans and to assess the barriers they pose to the availability of small-dollar mortgages to consumers.
Sec. 402 – Small Dollar Mortgage Points and Fees
This section requires the CFPB and the Federal Housing Finance Agency (FHFA) to evaluate the impact of existing regulations that limit the points and fees that lenders can charge on qualified mortgage loans, which vary by loan limit.
Sec. 403 – Appraisal Industry Improvement Act
This section helps bolster appraiser workforce capacity, including by allowing both licensed and credentialed appraisers to conduct appraisals for FHA-insured mortgage lending transactions.
Sec. 404 – Helping More Families Save Act
This section authorizes a pilot program under HUD’s Family Self-Sufficiency (FSS) initiative to promote economic mobility and homeownership by enabling more families to grow their household savings.
Sec. 405 – Choice in Affordable Housing Act
This section reduces HUD inspection delays by allowing units that are financed through other federal housing programs to automatically satisfy voucher inspection requirements if inspected within the past year. Additionally, the bill permits new landlords to request pre-inspections to increase access to housing and encourage landlord participation.
Title IV – Accessing the American Dream:
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Sec. 501 – HOME Investment Partnerships Reauthorization and Reform Act This section reforms and reauthorizes the HOME Investment Partnerships Program. It makes critical updates to improve program administration and facilitate the construction of more affordable housing.
Sec. 502 – Rural Housing Service Reform Act
This section reforms the United States Department of Agriculture’s (USDA) Rural Housing Service, including by decoupling rental assistance from maturing mortgages to preserve affordable housing in rural areas. This section will help preserve housing access for 400,000 rural families.
Sec. 503 – Incentivizing Local Solutions to Homelessness This section allows states and localities that receive Emergency Solutions Grant funding to request a waiver of the statutory 60 percent spending cap on emergency shelter beds and street outreach.
Sec. 504 – Reforming Disaster Recovery Act
This section authorizes the Community Development Block Grant–Disaster Recovery (CDBG-DR) program for three years and establishes the Office of Disaster Management and Resiliency within HUD to administer the program.
Sec. 505 – New Moving to Work Cohort
This section authorizes a Moving to Work expansion cohort with targeted flexibilities to improve program administration and tenant outcomes.
Title V – Program Reform:
Sec. 601 – Military Service Question
This section adds a disclosure to Fannie Mae and Freddie Mac’s uniform residential loan application form to ensure that veterans are made aware of their home loan benefits through the Department of Veterans Affairs (VA), which may provide a more affordable lending option.
Sec. 602 – Housing Unhoused Disabled Veterans Act
This section permanently excludes veterans’ disability compensation from annual income calculations under the HUD-VASH program to help more homeless veterans access VA housing.
Sec. 603 – Veterans Affairs Loan Informed Disclosure (VALID) Act This section improves transparency for veteran homebuyers by requiring FHA mortgage disclosures to include cost comparison information to make veterans aware of their home loan benefits through the VA and help them compare those options to FHA financing, with important privacy considerations.
Title VI – Veterans and Housing:
Sec. 701 – Requiring Annual Testimony and Oversight from Housing Regulators This section requires the HUD Secretary to testify annually before Congress on the Department’s operations, oversight activities, and program performance.
Title VII – Oversight and Accountability:
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CHAIRMAN TIM SCOTTSECTION-BY-SECTION
Sec. 702 – FHA Reporting Requirements on Safety and Soundness This section requires HUD to report monthly to Congress on the state of the statutorily required capital ratio of the Mutual Mortgage Insurance Fund, and to notify Congress if that ratio falls below statutorily required levels.
Sec. 703 – United States Interagency Council on Homelessness (USICH) Oversight This section requires USICH to provide an update on the status of the plan to reduce homelessness in its annual planning process and requires annual USICH Congressional testimony, if requested.
Sec. 704 – Appraisal Modernization Act
This section requires USDA, FHA, and FHFA to implement and maintain requirements that federally backed mortgage lenders have a review and resolution procedure for consumer-initiated second appraisals, or reconsiderations of value, when they believe there may be an issue with their appraised home value.
Sec. 801 – HUD-USDA-VA Interagency Coordination Act
This section directs HUD, USDA, and the VA to identify areas for collaboration to streamline and improve housing program implementation.
Sec. 802 – Streamlining Rural Housing Act
This section directs HUD and USDA to coordinate on joint environmental reviews for housing projects funded by both agencies.
Sec. 803 – Improving Self-Sufficiency of Families in HUD-Subsidized Housing This section directs HUD to conduct a study on the implementation of work requirements by public housing agencies, with an assessment of the challenges and benefits of work requirements on public housing agencies and families, including the effects on homelessness, poverty, asset building, job attainment, and public housing agency administrative capacity.
Sec. 804 – GAO Studies
This section directs the Government Accountability Office (GAO) to study key housing issues to help advance housing and economic opportunities.
Sec. 805 – Improving Public Housing Agency Accountability This section subjects public housing agencies (PHAs) to additional disclosure and oversight requirements, including enhanced reporting requirements for PHAs that are in receivership or subject to a monitor. It also adds certain requirements for the HUD Inspector General as it relates to PHA oversight.
Title VIII – Accountability, Coordination, Studies, & Reporting:
Sec. 901 – Community Bank Deposit Access
This section establishes that custodial deposits of an insured depository institution are not considered to be brokered deposits if the total amount does not exceed 20% of an institution’s total liabilities and the institution has less than $10 billion in assets.
Title IX – Strengthening Community Banks’ Role in Housing:
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Sec. 902 – Keeping Deposits Local
Sec. 903 – Tailored Regulatory Updates for Supervisory Testing Sec. 904 – Credit Union Board Modernization
This section modifies the amount of reciprocal deposits of an insured depository institution that are not considered to be brokered deposits under a graduated scale based on an institution’s total liabilities. The institution is also required to be well-capitalized and receive strong supervisory ratings from its regulators.
This section raises the consolidated asset threshold from $3 billion to $6 billion for insured depository institutions to qualify for an 18-month examination cycle.
This section amends the Federal Credit Union Act to revise the frequency of meetings that a federal credit union's board of directors is required to hold.
Sec. 905 – Systemic Risk Authority Transparency
This section requires the GAO and appropriate Federal banking regulators to issue reports within specified timeframes when the Federal Deposit Insurance Corporation (FDIC) invokes the systemic risk exception, detailing causes of bank failures, regulatory actions, and any management or supervisory shortcomings.
Sec. 906 – Advancing the Mentor-Protégé Program for Small Financial Institutions Sec. 907 – American Access to Banking
This section directs the Department of the Treasury to establish a mentor-protégé program pairing large financial institutions with other depository institutions, with the goal of enhancing their capacity to serve customers and potentially act as financial agents.
This section directs Federal banking and credit union regulators to streamline the de novo application process, reduce duplicative information requests, and review capital-raising restrictions, particularly for non-accredited investors.
Sec. 908 – Promoting New Bank Formation
This section creates a two-year phase-in pilot for de novo financial institutions to meet Federal capital requirements.
Sec. 909 – Rural Depositories Revitalization Study
This section requires Federal prudential regulators to jointly study ways to improve the growth, capital adequacy, and profitability of rural depository institutions and to identify regulatory barriers to these goals and to the formation of new depository institutions, with a report to Congress due within one year of enactment.
Sec. 1001 – Homes Are For People, Not Corporations
This section prohibits large institutional investors from purchasing certain single-family homes to promote homeownership opportunities for American families, not corporations.
Title X – Home-Ownership for Main Street America:
Sec. 1101 – Central Bank Digital Currency
This section pauses the Federal Reserve from issuing a central bank digital currency.
Title XI – Central Bank Digital Currency:
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Sec. 1201 – Severability
This section provides a severability clause for the legislation.
Sec. 1202 — No Additional Funds Authorized
This section ensures that certain legislative requirements are met.
Title XII – Miscellaneous: