A newly introduced Senate bill aims to dramatically increase housing construction across the United States by declaring a national housing emergency and expanding federal authority over housing production and development regulations.
Introduced on Jan. 8 by Sen. Elissa Slotkin, D-Mich., the National Housing Emergency Act calls on President Donald Trump to formally declare a housing emergency and invoke the Defense Production Act to boost domestic manufacturing of key construction materials. The legislation’s stated goal is to spur the construction of 4 million additional housing units nationwide.
Under the proposal, the federal government would be empowered to restrict state and local governments from enforcing regulations that place “a substantial burden” on housing development during the declared emergency period. That period would remain in effect until 2031 or until the 4 million-unit construction target is achieved, whichever comes first.
“There is nothing more fundamental to the American Dream than owning your own home, and it has become increasingly difficult for middle class Americans to do this,” Slotkin stated. “The United States is in a housing crisis, and we need to act now.”
The bill builds on growing bipartisan concern over housing affordability and supply shortages, as new data points to worsening conditions for prospective homeowners and renters. According to figures cited in the legislation, the share of first-time homebuyers dropped to a record-low 21% in 2025, while the average age of a first-time buyer climbed to a record-high 40. Homelessness also reached unprecedented levels in 2024.
While many cities and states have pursued local reforms—such as easing zoning restrictions and reducing permitting delays—the proposed legislation would significantly escalate federal involvement. Lawmakers in both chambers introduced competing housing production bills in 2025, signaling mounting pressure for national-level action.
Federal momentum continued this week as President Donald Trump called via social media for the federal government to purchase $200 billion in mortgage bonds in an effort to bring down mortgage rates. The administration had already begun examining the possibility of declaring a housing emergency last fall.
Treasury Secretary Scott Bessent previously acknowledged the complexity of federal involvement, telling the Washington Examiner, “We’re trying to figure out what we can do, and we don’t want to step into the business of states, counties and municipal governments.”
The National Housing Emergency Act, however, would require regulatory changes at the state and local level. By extending the Defense Production Act—originally enacted in 1950 for national defense—the bill would allow the federal government to prioritize production of materials critical to housing construction, including lumber, steel and manufactured housing components.
In addition, the legislation introduces a new funding condition tied to federal block grants. States and municipalities would be required to demonstrate housing growth efforts to remain eligible for certain federal funds.
“No one gets a blank check: It rewards pro-growth communities with federal dollars and holds accountable communities that refuse to grow,” Slotkin’s office stated.
If enacted, the bill would mark one of the most significant federal interventions in housing policy in decades, reshaping the balance between local land-use authority and national housing supply goals.
Originally reported by Ryan Kushner, Editor in Smart Cities Dive.
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