Innovation Fund Act
- Bill Number
- S. 3067
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-10-28: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-12-05T22:49:30Z
AI-Generated Summary
Purpose This legislation establishes a competitive federal grant program, called the Innovation Fund, administered by the Department of Housing and Urban Development (HUD). The program rewards local governments and tribes that have already increased their housing supply and provides funding to further expand attainable housing options.
Key Provisions
- Definitions: "Attainable housing" targets households at or below 80-120% of area median income, depending on the specific threshold used. "Eligible entities" include metropolitan cities, urban counties, other local governments, or Indian tribes that demonstrate objective housing supply growth, with HUD publishing its measurement method for public comment.
- Grant Program: HUD must create the program within one year of enactment. Grants are awarded annually (at least 25, unless funding is insufficient), ranging from $250,000 to $10 million, with priority for geographic diversity across rural, suburban, and urban areas.
- Eligible Uses: Funds may support Community Development Block Grant activities, certain transportation projects, matching contributions for EPA water programs, or local initiatives that expand attainable housing supply.
- Application Requirements: Entities must describe grant uses, provide data on recent housing supply increases, link activities to their consolidated housing plan, and detail prior or ongoing initiatives.
- Qualifying Initiatives: Examples include allowing more by-right multifamily housing, reducing parking or lot-size requirements, streamlining permitting, eliminating barriers to accessory dwelling units, or using tax incentives for affordable development.
- Administration: Grants for certain construction activities follow Community Development Block Grant rules.
- Funding: Authorizes $200 million annually for fiscal years 2027–2031, adjusted for inflation.
Significant Changes to Existing Law The bill creates a new standalone grant program rather than amending core statutes. It links to existing programs (such as Community Development Block Grants under the Housing and Community Development Act of 1974) by permitting their activities as eligible uses but does not alter those programs' core requirements or funding formulas.
Potential Impacts
- Government Agencies: HUD gains new administrative responsibilities for program design, eligibility determinations, and grant oversight.
- Citizens and Communities: Local areas that increase housing production may receive funding for further development, potentially improving housing availability and affordability for moderate-income households.
- International Relations: None identified.
Main Stakeholders Affected
- Metropolitan cities, urban counties, other local governments, and Indian tribes that qualify as eligible entities.
- HUD as the administering agency.
- Residents and developers in participating jurisdictions seeking expanded housing options.
Notable Legal, Constitutional, or Political Implications The bill explicitly states it does not authorize HUD to mandate, supersede, or preempt local zoning or land use policies, addressing concerns about federal overreach into local authority. It also preserves existing requirements under the Cranston-Gonzalez National Affordable Housing Act related to public participation in housing planning.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Sen. Warnock, Raphael G. [D-GA]
Recent Actions
- 2025-10-28: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-10-28: Introduced in Senate
Bill Versions
- Innovation Fund Act — issued 2025-10-28 — PDF (10 pages)