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119-hr-5938119th CongressWALLET

Innovation Fund Act

Sponsored By: Representative Cleaver, Emanuel [D-MO-5]

Introduced

Summary

This bill would create a national competitive grant program to expand local attainable housing supply. It would ask HUD to award money to cities, counties, and tribes that can show recent housing growth and that adopt policies to enable denser, lower‑cost housing.

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  • Families and renters: Funds would support building and preserving housing targeted to households around 60–80% of area median income, with alternate tests that reach up to 100–120% of AMI. This aims to increase units that are within reach for lower‑ and moderate‑income households.
  • Local governments and tribes: Eligible entities must demonstrate recent housing supply growth and publish a methodology for that determination. Grants would range from $250,000 to $10,000,000, with at least 25 awards per year and a geographic mix of rural, suburban, and urban recipients.
  • Housing production and permitting: Grants can pay for construction and for policy reforms that lower costs and allow denser development, such as by‑right missing‑middle housing, smaller lot rules, relaxed parking, streamlined permitting, accessory dwelling unit reforms, and tax or financing incentives.

*Would authorize $200 million per year for FY2027 through FY2031, adjusted for inflation, increasing federal outlays over that period.*

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

New competitive housing grants

If enacted, the bill would require HUD to create a competitive Innovation Fund within one year. The program would get $200 million per year for FY2027–FY2031, adjusted for inflation by the Consumer Price Index. HUD would make at least 25 grants each year unless funds are insufficient, with each grant between $250,000 and $10,000,000. Cities, counties, local governments, and tribes that show they increased housing supply could apply for funds to build or support attainable housing and related activities.

HUD cannot override local zoning

If enacted, the bill would say that nothing in this section lets HUD require, replace, or preempt local zoning or land-use rules. It would also state that the section does not change the requirements of section 105(c)(1) of the Cranston‑Gonzalez National Affordable Housing Act. This is a legal limit on HUD's authority and would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Cleaver, Emanuel [D-MO-5]

MO • D

Cosponsors

  • Rep. Pressley, Ayanna [D-MA-7]

    MA • D

    Sponsored 11/7/2025

Roll Call Votes

No roll call votes available for this bill.

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