Build Now Act of 2025
Summary
The Build Now Act of 2025 proposes adjustments to Community Development Block Grant (CDBG) allocations based on housing growth improvement rates. It aims to incentivize cities and urban counties to increase their housing supply by rewarding those with higher growth rates with bonus funding. The act defines key terms like 'covered recipient,' 'eligible recipient,' and 'housing growth improvement rate' to establish a formula for adjusting CDBG allocations.
Expected Effects
The act will likely lead to increased competition among cities and urban counties to improve their housing growth rates. This could result in policy changes at the local level to reduce regulatory barriers to housing development. Some jurisdictions may see increased funding, while others may experience a decrease in CDBG allocations.
Potential Benefits
- Incentivizes local governments to streamline housing development processes.
- Could lead to an increase in housing supply, potentially addressing housing shortages.
- Rewards jurisdictions that demonstrate significant improvements in housing growth.
- Provides additional resources to areas experiencing rapid housing growth.
- Encourages data-driven decision-making in housing policy through the use of metrics like housing growth improvement rate.
Potential Disadvantages
- May disadvantage cities with existing high housing costs or limited land availability.
- Could create unintended consequences, such as incentivizing unsustainable development practices.
- May lead to decreased funding for communities that need it most but struggle to increase housing growth rates.
- The formula for calculating housing growth improvement rate may be complex and difficult for some jurisdictions to understand.
- Could exacerbate existing inequalities if wealthier communities are better positioned to capitalize on the incentives.
Most Disadvantaged Areas:
Constitutional Alignment
The Build Now Act of 2025 appears to align with the General Welfare Clause of the U.S. Constitution (Preamble). It aims to 'promote the general Welfare' by addressing housing shortages and incentivizing community development. The act does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).