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119-s-3067119th CongressWALLET

Innovation Fund Act

Sponsored By: Senator Warren, Elizabeth [D-MA]

Introduced

Summary

Creates a HUD competitive grant program to reward local governments that increase housing supply and fund local policy changes to expand "attainable housing." The bill defines what counts as attainable housing and sets eligibility for cities, counties, and tribes that can show objective housing supply growth.

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  • Families and renters: Would support housing that serves low- and middle-income households by funding projects tied to specified area median income ranges, including majority-serving thresholds such as 80–100% or 60–120% of AMI.
  • Local governments and tribes: Makes metropolitan cities, urban counties, other local governments, and Indian tribes eligible if they demonstrate housing supply growth and meet HUD's public-commented methodology for eligibility.
  • Local policy and projects: Grants may pay for Community Development Block Grant activities, zoning and permitting reforms, accessory dwelling units, parking changes, tax or public financing incentives, matching for certain EPA water revolving funds, and other cost-reducing construction or regulatory changes.
  • Program design: HUD would run a competitive program that awards at least 25 grants annually and gives priority to places with innovative policies or clear improvements in housing supply.

*This bill would authorize $200 million per year for fiscal years 2027 through 2031, adjusted for inflation, increasing federal spending over that period.*

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Bill Overview

Analyzed Economic Effects

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

More federal housing grants for cities

If enacted, the bill would authorize $200 million a year for a new HUD grant program for fiscal years 2027 through 2031. The authorized amount would be adjusted for inflation using the Consumer Price Index. HUD would be directed to make at least 25 grants each year if funding allows. Individual grants would be no less than $250,000 and no more than $10,000,000. HUD should try to fund a mix of rural, suburban, and urban communities.

Local grants to boost housing supply

If enacted, HUD would have one year to set up a competitive grant program for cities, urban counties, local governments, and Indian tribes that have increased housing supply. HUD must publish how it measures improvement in the Federal Register and allow at least 90 days for public comment before a funding notice. Applications would need a plan for eligible uses, an attestation funds will be used only for eligible purposes, data on housing supply over the prior three years, and evidence of local initiatives to expand housing. HUD would give priority to places with innovative policies or clear improvement. The bill says HUD may not override local zoning rules and treats construction projects in a defined sector as Community Development Block Grant-assisted projects.

Sponsors & CoSponsors

Sponsor

Warren, Elizabeth [D-MA]

MA • D

Cosponsors

  • Sen. Warnock, Raphael G. [D-GA]

    GA • D

    Sponsored 10/28/2025

Roll Call Votes

No roll call votes available for this bill.

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