The political landscape in Washington, D.C., is once again abuzz with controversy as President Donald Trump has decided to veto the 21st Century Road to Housing Act a bipartisan bill aimed at making homeownership more affordable. Despite overwhelming support from both Democrats and Republicans, Trump has chosen to reject the legislation, citing his dissatisfaction with the Senate’s inability to pass the SAVE America Act a strict voter ID bill.
The housing bill, described by White House press secretary Karoline Leavitt as one of the most significant pieces of housing legislation in American history was passed by both houses of Congress in June. However, Trump dismissed it as a big yawn and refused to sign it on June 24. On Friday, he reiterated his stance, posting on Truth Social that he would not sign the bill in protest of the Senate’s failure to pass the SAVE America Act.
The Housing Bill: What’s Inside?
The 21st Century Road to Housing Act is packed with more than 40 provisions aimed at encouraging homebuilding and making homeownership more affordable. One of the key provisions is a cap on how many single-family homes big investors can buy. Corporate landlords that own at least 350 houses will not be able to buy more, a measure aimed at making the housing market more competitive for individual buyers.
Other provisions include streamlining environmental reviews for home construction, creating grant programs for preapproved housing designs, and removing requirements for permanent chassis in manufactured homes. The bill also encourages home construction by sending more existing funding to communities that build more. However, it does not add any new housing funding to the federal budget.
The Limits of the Housing Bill
While the housing bill is a significant step, it has its limitations. Local zoning rules, which can slow down or prohibit construction, remain unchanged. Additionally, homebuilders may choose not to start new projects if market conditions are not favorable. High material and labor costs have made developers pessimistic about market conditions for the last three years.
Congress does not control mortgage rates, another crucial factor in housing affordability. Currently, rates for a 30-year fixed mortgage are around 6.5%, much higher than they were a few years ago during the pandemic. Even if builders start new development projects, additional homes will take time to hit the market, and any affordability improvements won’t be felt for years.
The Political Maneuvering
Trump’s refusal to sign the housing bill is seen by many as a political maneuver. By linking the signing of the housing bill to the passage of the SAVE America Act, Trump is putting pressure on the Senate to pass the voter ID legislation. The SAVE America Act would require proof of citizenship to register to vote and photo ID to cast a ballot, a measure that has stalled in the Senate due to lack of support from Democrats.
House Speaker Mike Johnson delivered the housing bill to the president on June 29, starting a 10-day clock for Trump to either sign or veto the bill. That clock is set to expire tonight at 11:59 p.m. ET. If Trump does not take action, the bill will become law automatically. However, Trump has made it clear that he will not sign the bill, leaving its fate in the hands of Congress.
The political implications of Trump’s decision are significant. Housing affordability is a potent electoral issue, and both parties are hoping to claim credit for passing legislation meant to address it ahead of the midterms. Trump’s refusal to sign the bill could be seen as a strategic move to rally his base and put pressure on the Senate to pass the SAVE America Act.
