WASHINGTON, D.C. — U.S. Senator John Kennedy’s (R-La.) Build Now Act advanced unanimously out of the Senate Banking Committee this week, gaining momentum as a key provision within the broader ROAD to Housing Act of 2025—the first bipartisan housing package considered by the committee in over a decade.
The Build Now Act, co-sponsored by Sen. Elizabeth Warren (D-Mass.), aims to incentivize local governments to increase new home construction by tying federal housing funds to actual building progress. Specifically, the legislation links HUD’s Community Development Block Grant (CDBG) funding to each city’s rate of homebuilding compared to the national median.
“Today’s unanimous Senate Banking Committee vote to pass my Build Now Act is a win for every young family in America looking to buy a home,” said Kennedy. “I’m looking forward to the steps ahead for this much-needed reform, and am grateful to my Banking Committee colleagues for their support as we take on the red tape getting in the way of new home construction.”
The Build Now Act introduces a performance-based funding model:
- Cities that fail to exceed the national median rate of homebuilding would lose 10% of their CDBG funds.
- These withheld funds would be reallocated to cities demonstrating higher rates of new home construction.
- Cities would be granted a two-year window to begin building before any adjustments to funding are made.
- Exceptions are granted for cities with median home values below the national median or those recently affected by federally declared disasters.
Senate Banking Committee Chairman Sen. Tim Scott (R-S.C.) praised the bipartisan measure, stating, “Senator Kennedy, you and Ranking Member Warren took a novel idea to reward communities for the good work they have done to increase housing supply and turned it into legislation.”
The legislation has drawn widespread support from housing and economic policy advocates. Organizations backing the bill include the Niskanen Center, the National Association of Home Builders (NAHB), and the Mortgage Bankers Association, as well as respected economists such as Harvard University Professor Edward Glaeser.
“The Build Now Act challenges the status quo in a smart and timely way,” said Alex Armlovich, Senior Housing Policy Analyst at the Niskanen Center. “We commend Senator Kennedy’s leadership and vision in advancing this much-needed legislation.”
“Increasing the housing supply is key to combating America’s housing affordability crisis,” added NAHB Chairman Buddy Hughes. “The federal incentives established by the Build Now Act of 2025 will help reduce regulatory barriers and expand the production of affordable, attainable housing.”
Kennedy has repeatedly emphasized the urgent need for housing reform in recent Senate hearings, citing the rising median age of first-time homebuyers—now 38—as a troubling indicator of affordability challenges.
With the Banking Committee’s approval, the ROAD to Housing Act, including the Build Now Act, now moves to the full U.S. Senate for consideration. If passed, it will proceed to the House of Representatives before potentially being signed into law.