federal funding

WASHINGTON — The House passed Congress’ most significant housing legislation in decades on Tuesday, sending the bill to President Trump’s desk — a bid by both parties to show midterm voters that they’re paying attention to affordability concerns ahead of November’s election.

The legislation, which the Senate passed Monday, aims to boost the housing supply through dozens of targeted provisions whose effects are expected to be seen over the next several years. In California, measures to unlock some federal block grant dollars for new housing in big cities could be particularly significant.

The bipartisan agreement over the legislation, after weeks of negotiation, marks a highly unusual collaboration in the divided Congress. It reflects growing public pressure on Washington to address economic issues at a time when Americans’ economic woes are deepening amid inflation, elevated gas prices and the ongoing effects of Trump’s tariffs.

The bill passed in the House with a 358-32 vote after it was approved by the Senate on Monday in an 85-5 vote. Those opposed in both chambers were Republicans. The Trump administration has signaled support for the bill, meaning it will probably become law.

“This legislation must serve as a foundation for continued action, not the final step in addressing our nation’s housing crisis,” Rep. Maxine Waters (D-Los Angeles), one of the lawmakers who put together the deal, said on the House floor before the vote.

The bill aims to help housing supply by removing regulatory barriers to building affordable housing units, preventing large investors from buying up single-family homes and incentivizing new housing in cities with federal funding, among other measures.

The package focuses on addressing housing supply constraints and making federal programs easier to use, said David Gonzalez Rice, senior vice president of public policy at the National Low Income Housing Coalition. Though the legislation does not create major new funding streams, advocates see the bipartisan acknowledgment of the need for housing reforms as significant.

“It’s a big step in the right direction,” Gonzalez Rice said, “and there’s still a lot of work to do.”

Addressing cost-of-living issues has become high stakes for lawmakers engaged in midterm reelection campaigns, as Americans increasingly disapprove of Trump’s handling of the economy. Democrats are hoping to leverage affordability issues to gain control of at least one chamber of Congress, while Republicans are fighting to maintain their majorities.

It was politically crucial for members of both parties to be able to tell voters they had worked in good faith to address housing affordability, said David Garcia, deputy director of policy at UC Berkeley’s Terner Center for Housing Innovation.

“It would’ve been hard to justify to voters during their campaigns that their party did not do everything they could to advance the first meaningful legislation on housing policy in decades,” Garcia said.

The legislation was a product of intense bipartisan negotiations led by Waters and Rep. French Hill (R-Ark.), as well as Sens. Elizabeth Warren (D-Mass.) and Tim Scott (R-S.C.), after months of discussions in both parties about how to address housing.

“The work has been extraordinary between the majority and minority in this House, answering the call [for] solutions from the American people,” Hill said on the House floor.

Trump — who has largely dismissed the affordability issue, last week calling it “a fake word” — had indicated support for housing reforms.

In a March statement of policy, the administration indicated it “strongly supports” passage of the bill, saying it represented “significant advances in federal housing policy.” Trump also signed an executive order suggesting that regulatory barriers to home building should be removed, a concept reflected in the bill.

The nationwide affordability crisis has been driven for years by rising costs, a shortage of affordable housing, higher mortgage rates and other factors. Recent rising construction costs and labor shortages have exacerbated the issue, according to the National Assn. of Home Builders.

The number of new housing starts in May dropped by more than 15%, according to a report last week from the U.S. Census Bureau and Department of Housing and Urban Development.

California has added housing supply in recent years, but its shortage remains significant and prices high. The state has among the highest rates of households spending disproportionate amounts of their income on housing, according to the Public Policy Institute of California.

The momentum in Washington to respond to those pressures — which came as something of a surprise to advocates — can be viewed as a reflection of current public sentiment, Gonzalez Rice said.

“It speaks to the broader understanding of the public that housing is a policy problem, that government can do something about it and the expectation that government will do something about it,” he said. “It’s clear elected officials are hearing from their constituents.”

The bill includes nearly 50 provisions, including the prohibition on investor purchase of single-family homes, which is intended to help increase the housing supply for individual buyers. It also seeks to help cities convert abandoned buildings into new housing and help landlords and homeowners make home repairs.

Two measures are expected to be particularly significant for cities such as Los Angeles and San Francisco, Garcia said: One ties some federal funding under the Community Development Block Grant program to housing production to motivate cities with low housing supply and high costs to build more housing. The other allows block grant money to be used for affordable housing construction, opening a new revenue source for cities.

California’s big cities may be spurred to increase new housing in future years, Garcia said, and they also could benefit from the ability to direct the block grant funding to housing.

“Costs to build are so high,” he said, “that any new funding could be critical.”

Among other steps that could have swift results is a plan to preserve a rental assistance program for nearly 400,000 rural homeowners and a measure to streamline the leasing process for families using vouchers, Gonzalez Rice said.

The bill also exempts certain projects from a set of environmental regulations, a step aimed at speeding up the review and construction process. And it seeks to make it easier to build manufactured homes by removing a requirement that they be built on a chassis, which the Senate committee estimated would reduce the cost of each new unit by up to $10,000.

A federal judge sided with California and other Democratic states on Friday in a preliminary injunction that blocked the Trump administration’s attempt to condition food benefits on compliance with the president’s policies on gender and immigration.

Twenty states and the District of Columbia filed a lawsuit in March against the Trump administration in U.S. District Court in Massachusetts, arguing that the “unlawful” and “unconstitutional” funding requirements are vague and designed to force policies on states.

Billions in federal funding are ultimately at stake, including money for school lunch programs that provide meals to 30 million children nationwide and food stamps that support about 40 million Americans living in low-income households.

“As the Trump Administration tries to use essential programs and billions in funding as leverage to advance their hateful, discriminatory agenda, California continues to fight to uphold the law and ensure that our communities can continue to access the funding they need to thrive,” said California Atty. Gen. Rob Bonta in a statement.

The policy shift from the United States Department of Agriculture marks another effort by the president to force left-leaning states to submit to his positions on hot-button political and cultural issues to receive government funding. California’s current budget relies on $174.5 billion in federal dollars, or roughly one-third of the overall state budget funds.

Last year, the Trump administration canceled a sexual education grant to California after the state declined to remove gender identity from sexual education curriculum. The administration is also restricting federal funds in an attempt to force states to ban transgender athletes from competing in women’s sports.

The funding conditions from the USDA relate to gender ideology, women and girls’ sports and immigration, according to the lawsuit.

States argue that the conditions do not explain what activities are prohibited for entities that receive grants. The USDA did not cite any law allowing the organization to impose anti-discrimination policies that go beyond federal law, the suit states.

The states that joined the lawsuit contend that they are left with the “unlawful” choice of adhering to the conditions or risk losing up to $74 billion in collective federal assistance from the USDA.

U.S. District Judge Myong Joun approved a preliminary injunction Friday and is expected to issue a memorandum later explaining the decision, according to the Associated Press.

SACRAMENTO — As Los Angeles prepares to host the 2028 Olympics, state lawmakers are raising concerns that potential clashes with President Trump could cause chaos.

State Sen. Susan Rubio (D-Baldwin Park), speaking at a legislative hearing this week on the 2028 Games, expressed concern about Trump’s animosity toward California and questioned whether that could affect the federal financial support that is essential to the Olympics.

“I know we rely a lot on the federal funding,” Rubio said. “Can you assure me that we’re not going to be left in the middle of the planning carrying the bag?”

Rubio was addressing Joey Freeman, the vice president of state affairs for the LA28 Organizing Committee, who testified before lawmakers.

Freeman assured legislators that the organizing committee had a “wonderful working relationship” with the Trump administration. He said the committee successfully advocated for $1 billion in federal funds for state and local law enforcement, and $94 million to boost transportation planning.

LA28 leaders previously projected that the Games will cost more than $7.1 billion. They’ve said the money will come from a mix of sources, including corporate sponsors, ticket sales, merchandise, the federal government and the International Olympic Committee.

Rubio, however, said she remained worried that the federal dollars could fall through.

“As a state, our funding is also stretched thin, and at the end of the day we don’t want to have to step in to save the Olympics,” Rubio said.

Several other concerns were raised during the roughly three-hour hearing, including questions about how to best protect visitors and participants from federal immigration raids. The Trump administration’s increased enforcement actions by Immigration and Customs Enforcement and U.S. Border Patrol last year in the Los Angeles area led to clashes with protesters and widespread concerns about immigrant rights.

Sen. Lena Gonzalez (D-Long Beach) said legislators were working on a package of bills to help rein in ICE during the event.

“Immigration is still front and center,” she said. “People are feeling even more worried that they’ll continue to be deported and kidnapped.”

Other lawmakers grilled Freeman for more information about ticket sales. LA28 previously advertised tickets as being affordable for locals, but many shoppers last month were dismayed to find prices in the thousands.

Freeman said he did not have specifics on the community ticketing program, which earned a rebuke from Sen. Laura Richardson (D-San Pedro).

“You’re in an official state hearing and I think you know there was a problem because it was well-publicized in the news,” she said. “The fact that we came to this committee and you don’t know how many tickets were issued, you don’t know how many of those were under $100 — you don’t have the information that we need.”

Paul Krekorian, executive director of the Los Angeles Office of Major Events, chalked up many of the concerns surrounding the games to political negativity. He pointed to the success of the Olympics in Los Angeles in 1932 and 1984.

“You hear the tickets are too expensive, there aren’t going to be enough opportunities, it’s going to be a big disruption, there’s going to be a lot of traffic, the city just went through these horrible fires, how are we going to pull this off?” he said. “I just want to remind all of us — L.A. knows how to do this.”