Build Now Act of 2025
Summary
The Build Now Act of 2025 aims to adjust Community Development Block Grant (CDBG) allocations based on housing growth improvement rates. It incentivizes cities and urban counties to increase their housing supply by rewarding those with higher growth rates with bonus CDBG funds. Conversely, it penalizes those with lower growth rates by decreasing their allocations.
Expected Effects
The act will likely lead to increased housing construction in some areas, as cities compete for bonus CDBG funds. It could also exacerbate existing inequalities if cities lacking resources struggle to meet the growth targets. The act's adjustments to CDBG allocations will begin in the second full fiscal year after enactment and continue through fiscal year 2042.
Potential Benefits
- Increased housing supply in areas that successfully improve their housing growth rates.
- Potential economic stimulus in the construction industry.
- Incentivizes local governments to reduce regulatory barriers to housing development.
- Could lead to more affordable housing options in some markets.
- Provides guidance and resources to eligible recipients on best practices for increasing housing supply.
Potential Disadvantages
- Penalizes cities and urban counties with lower housing growth rates, potentially hindering their ability to address other community development needs.
- May exacerbate existing inequalities if some areas are unable to compete for bonus funds due to limited resources or other constraints.
- Could lead to unintended consequences, such as overdevelopment or strain on existing infrastructure.
- The formula for calculating housing growth improvement rates may be complex and subject to manipulation.
- The act's focus on housing growth may overshadow other important community development priorities.
Most Disadvantaged Areas:
Constitutional Alignment
The Build Now Act appears to align with the General Welfare Clause of the Constitution (Preamble). The act aims to promote the general welfare by incentivizing housing growth and addressing housing shortages. The act's allocation of funds is subject to congressional oversight and appropriations, as outlined in Article I, Section 9, Clause 7, which states that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law."
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).