S. 3600

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3600 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 3600

To require the President to declare a national housing emergency and 
invoke the Defense Production Act to incentivize residential housing 
production, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

January 8 (legislative day, January 7), 2026

Ms. Slotkin introduced the following bill; which was read twice and 
referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

A BILL

To require the President to declare a national housing emergency and 
invoke the Defense Production Act to incentivize residential housing 
production, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``National Housing Emergency Act of 
2026''.

SEC. 2. SENSE OF CONGRESS.

It is the sense of Congress that--
(1) the President should declare a national emergency with 
respect to housing under section 201 of the National 
Emergencies Act (50 U.S.C. 1621); and
(2) to address that emergency, the President should use the 
authorities provided by the Defense Production Act of 1950 (50 
U.S.C. 4531 et seq.) to increase the supply of materials 
produced in the United States that support the construction and 
rehabilitation of housing.

SEC. 3. FINDINGS.

Congress finds that--
(1) housing is the largest expenditure for most households 
and accounts for 45 percent of the Consumer Price Index;
(2) approximately 75 percent of households in the United 
States are unable to afford a median-priced home with housing 
demand outpacing available supply;
(3) there is a shortage of at least 4,000,000 housing units 
due to low levels of residential construction and compounding 
regulations;
(4) the housing unit deficit is projected to increase to 
nearly 10,000,000 units by 2035;
(5) the median sales price for existing single-family homes 
has risen over 50 percent since the onset of the COVID-19 
pandemic;
(6) rapid increases in rents, combined with slower income 
growth, worsen housing affordability in metro and nonmetro 
areas;
(7) the share of first-time homebuyers has decreased to a 
record low of 21 percent in 2025, with the average age of a 
first-time homebuyer increasing to a record high of 40 years 
old;
(8) Federal, State, and local overregulation accounts for 
approximately 25 percent of the cost to build a new single-
family home;
(9) the housing supply shortage compromises the economic 
and national security of the United States; and
(10) investing in closing the housing unit shortfall can 
unlock nearly 2,000,000 jobs, including over 700,000 
construction jobs, and add nearly $2,000,000,000,000 to the 
gross domestic product through 2035.

SEC. 4. EXPANSION OF DEFENSE PRODUCTION ACT OF 1950 TO ADDRESS HOUSING.

The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is 
amended--
(1) in section 2(a)(5) (50 U.S.C. 4502(a)(5)), by inserting 
``and residential construction and rehabilitation'' after 
``domestic energy''; and
(2) in section 702(14) (50 U.S.C. 4552(14)), by inserting 
``, housing,'' after ``programs for military''.

SEC. 5. REMOVING REGULATORY BARRIERS TO HOUSING PRODUCTION.

During the period that a national emergency described in section 2 
is in effect--
(1) sections 212(d), 218(g), and 220 of the Cranston-
Gonzalez National Affordable Housing Act of 1990 (42 U.S.C. 
12742(d), 12748(g), 12750), and any regulation or guidance 
implementing those sections, shall have no force or effect;
(2) section 108(e) of the Community Development Banking and 
Financial Institutions Act of 1994 (12 U.S.C. 4707(e)), and any 
regulation or guidance implementing that section related to 
housing development, shall have no force or effect;
(3) no housing preservation or infill project funded by the 
Department of Housing and Urban Development shall be subject to 
any Federal environmental review requirements;
(4) notwithstanding any other provision of law, if more 
than 1 Federal program is used for the development or 
rehabilitation of housing, including any Federal agency action 
that contributes to the development or rehabilitation of 
housing, only 1 environmental review shall be carried out for 
the project pursuant to the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.);
(5) a choice limiting action described in section 58.22 of 
title 24, Code of Federal Regulations, or any successor 
regulation, shall be permitted for any housing project funded 
by the Department of Housing and Urban Development;
(6) any provision of law (including regulations) or 
guidance that prohibits the duplication of benefits under 
community development block grant disaster recovery grants for 
the development or rehabilitation of housing, including section 
312 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5155), shall have no force or effect; 
and
(7) the Secretary of Housing and Urban Development and the 
Director of the Office and Management and Budget shall expedite 
the waiver process under section 70914 of the Build America, 
Buy America Act (Public Law 117-58; 135 Stat. 1298) such that 
the Secretary is required to complete the waiver process within 
30 days of publishing a written justification under subsection 
(c) of such section 70914, and if the Secretary does not 
complete the review within that timeframe, the waiver shall be 
deemed to be issued.

SEC. 6. MINIMUM RESIDENTIAL CODE STANDARD.

During the period that a national emergency described in section 2 
is in effect, housing constructed or rehabilitated shall meet the 
requirements of--
(1) the 2009 International Residential Code, or an 
equivalent code, including amendments adopted by State, local, 
Indian tribal, or territorial governments for site-built 
housing; or
(2) part 3280 of title 24, Code of Federal Regulations, for 
manufactured housing.

SEC. 7. PRO-GROWTH REQUIREMENT.

(a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Undersecretary for Policy Development and Research at 
the Department of Housing and Urban Development and the Undersecretary 
for Policy at the Department of Transportation shall establish a 
funding condition to be known as the ``Pro-Growth Requirement'', which 
shall be applied as a required funding condition in order for a State 
or unit of general local government to receive Federal block grant 
funding, such as surface transportation block grant program funding 
under section 133 of title 23, United States Code, during the period 
that a national emergency described in section 2 is in effect.
(b) Factors.--The following factors shall be met in order for a 
grantee to be in compliance with the Pro-Growth Requirement described 
in subsection (a):
(1) A positive level of housing growth measured against the 
previous year based on the Building Permit Survey and the 
Address Count Listing Files published by the Bureau of the 
Census within the jurisdiction of the grantee.
(2) The grantee has taken action to remove barriers to 
housing development and rehabilitation, such as--
(A) reducing minimum lot size requirements;
(B) allowing manufactured homes in areas zoned for 
single-family residential homes;
(C) eliminating or reducing off-street parking 
requirements;
(D) allowing duplexes, triplexes, or fourplexes in 
areas zoned for single-family residential homes;
(E) establishing density bonuses;
(F) allowing a single staircase for residential 
structures up to 5 stories;
(G) enacting high-density single-family and 
multifamily zoning;
(H) streamlining or shortening permitting processes 
and timelines;
(I) allowing the conversion of office units into 
residential units;
(J) donating vacant public land for affordable 
housing development;
(K) allowing accessory dwelling units, including 
detached accessory dwelling units, on all lots with 
single-family homes;
(L) establishing transit-oriented development 
zones;
(M) using property tax abatements to enable higher 
residential density; or
(N) enacting and implementing other laws or rules 
with a positive anticipated impact on housing supply.
(3) The comprehensive housing affordability strategy and 
community development plan issued by the grantee under part 91 
of title 24, Code of Federal Regulations, or any successor 
regulation (commonly referred to as a ``consolidated plan'') 
identifies clear, measurable objectives for housing growth.
(c) Appeal Process.--A grantee described in subsection (a) is 
allowed an appeal process relating to compliance with the Pro-Growth 
Requirement described in that subsection with the agency distributing 
an applicable grant if the recipient can display measurable actions 
taken to increase housing supply and growth within their jurisdiction.

SEC. 8. PROHIBITION.

During the period that a national emergency described in section 2 
is in effect, no State or unit of general local government shall impose 
or implement a land-use regulation in a manner that imposes a 
substantial burden on the construction or rehabilitation of residential 
housing.

SEC. 9. TERMINATION.

A national emergency described in section 2 shall terminate on the 
earlier of--
(1) the date on which 4,000,000 additional residential 
housing units, as compared to the date of enactment of this 
Act, are constructed or rehabilitated in the United States; or
(2) October 1, 2031.
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