Build Now Act of 2025
- Bill Number
- H.R. 6363
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-12-02: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-01-31T09:05:23Z
AI-Generated Summary
Purpose of the Legislation
The Build Now Act of 2025 aims to encourage faster housing development in urban areas by linking federal Community Development Block Grant (CDBG) funding—money provided to local governments for community projects like housing and infrastructure—to improvements in local housing growth rates. It rewards areas showing strong housing increases with extra funds while reducing allocations for areas with slower growth.
Key Provisions
- Definitions:
- Establishes terms like "covered recipient" (metropolitan cities or urban counties receiving CDBG funds), "eligible recipient" (most covered recipients, excluding those in low-rent/value areas, high-vacancy zones, disaster-declared regions, or places without zoning authority), "current annual growth rate" (average yearly increase in housing units over a recent 3-year period), "prior annual growth rate" (similar calculation over an earlier 5-year period), and "housing growth improvement rate" (a measure of how much the recent growth rate has improved compared to the prior one).
- Defines "extremely high-growth recipient" as those with at least 4% annual housing growth.
- Adjustments to CDBG Allocations (Section 3):
- For eligible recipients with a housing growth improvement rate at or above the median (excluding extremely high-growth areas) or classified as extremely high-growth, the Secretary of Housing and Urban Development (HUD) provides a "bonus" amount on top of standard allocations. This bonus comes from a pool created by reductions to other recipients and is proportional to the recipient's share of total housing units among bonus-eligible areas.
- For those below the median improvement rate, allocations are cut by 10%.
- Housing Unit Calculations (Section 4):
- HUD must use U.S. Census Bureau data (from address files) at the neighborhood block level with current boundaries. The Census Bureau and U.S. Postal Service must supply needed data. HUD can shift calculation timelines by up to 2 months for data alignment.
- Annual Reporting (Section 5):
- Before each fiscal year's allocations, HUD publishes a report listing each eligible recipient's improvement rate and identifying who received bonuses or reductions from the prior year.
- Notification and Implementation (Section 6):
- Within 60 days of enactment, HUD notifies recipients of their rates and provides guidance (including best practices) on reducing regulatory barriers to housing, like simplifying zoning rules.
- Adjustments start in the third full fiscal year after enactment and last through fiscal year 2043.
Significant Changes to Existing Law
This bill amends Section 106 of the Housing and Community Development Act of 1974, which governs CDBG formula-based allocations to cities and counties. It introduces a new performance-based adjustment tied to housing growth metrics, creating bonuses and penalties not previously in the law. These changes are temporary (ending in 2043) and do not alter the core CDBG eligibility or uses but overlay a growth-incentive layer on top of the existing formula.
Potential Impacts
- Government Agencies: HUD gains new responsibilities for data analysis, reporting, and notifications, potentially increasing administrative workload. The Census Bureau and Postal Service must share data more readily. Local governments may need to track and report housing data more closely.
- Citizens: Could lead to more housing construction in growing urban areas through incentivized funding, potentially lowering costs and increasing supply. However, reduced funds in slower-growth areas might limit community projects there, affecting low-income residents who rely on CDBG for services.
- International Relations: No direct impacts, as this is a domestic funding program focused on U.S. urban development.
Main Stakeholders Affected
- Primary: Metropolitan cities and urban counties (eligible recipients) that receive CDBG funds, as their allocations can increase or decrease based on housing growth performance.
- Secondary: HUD (oversees implementation), U.S. Census Bureau and U.S. Postal Service (provide data), and residents/businesses in affected urban areas who benefit from or depend on CDBG-funded projects like affordable housing or infrastructure.
- Others: Local policymakers, as the bill promotes reducing zoning barriers, which could influence city planning decisions.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on HUD's authority under existing housing laws to adjust formulas; requires precise data use to ensure fair calculations, with potential for disputes over growth rate metrics or exceptions (e.g., disaster areas). The temporary sunset in 2043 allows for future congressional review.
- Constitutional: Aligns with Congress's spending power to condition federal grants on policy goals like housing growth, without infringing on state/local autonomy (exceptions protect areas unable to control zoning).
- Political: Encourages pro-development policies in urban areas, potentially rewarding "growth-friendly" local governments while penalizing others, which could spark debates on equity between high- and low-growth regions or between urban and rural needs. The bipartisan sponsorship (by Reps. McClain and Himes) suggests cross-aisle appeal in addressing housing shortages.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. McClain, Lisa C. [R-MI-9]
Cosponsors (2)
Rep. Himes, James A. [D-CT-4], Rep. Perez, Marie Gluesenkamp [D-WA-3]
Recent Actions
- 2025-12-02: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-12-02: Referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-12-02: Introduced in House
- 2025-12-02: Introduced in House
Bill Versions
- Build Now Act of 2025 — issued 2025-12-02 — PDF (9 pages)