S. 3600 — National Housing Emergency Act of 2026

This section expresses the sense of Congress that the President should (1) declare a national emergency with respect to housing under the National Emergencies Act, and (2) use authorities under the Defense Production Act of 1950 to increase the supply of materials produced in the United States that support housing construction and rehabilitation.

This section states congressional findings on the U.S. housing crisis, including that housing accounts for 45% of the Consumer Price Index; 75% of households cannot afford a median-priced home amid a shortage of at least 4 million units (projected to reach nearly 10 million by 2035); the median sales price of existing single-family homes has risen over 50% since the COVID-19 pandemic; Federal, State, and local overregulation accounts for 25% of new single-family home costs; the first-time homebuyer share has fallen to a record low of 21% in 2025 at an average age of 40; and addressing the shortage could create nearly 2 million jobs (including 700,000 construction jobs) and add nearly $2 trillion to GDP through 2035.

This section expands the scope of the Defense Production Act of 1950 to include residential construction and rehabilitation supplies for national defense needs. Specifically, (1) it revises congressional findings to require assuring the availability of such supplies, in addition to domestic energy supplies; and (2) it adds housing to the definition of national defense. (Thus, the President may use DPA authorities—i.e., production prioritization, material allocation, and loans—to address housing shortages during national emergencies.)

This section suspends, during the national emergency described in section 2, multiple regulatory barriers to housing production and rehabilitation as follows: (1) sections 212(d), 218(g), and 220 of the Cranston-Gonzalez National Affordable Housing Act of 1990 (i.e., HOME program matching funds, set-aside, and other requirements); (2) section 108(e) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4707(e)) and related regulations or guidance on housing development by the Community Development Financial Institutions Fund; (3) Federal environmental review requirements for HUD-funded housing preservation or infill projects; (4) multiple environmental reviews under the National Environmental Policy Act when multiple Federal programs fund a housing project, requiring only one such review; (5) limitations on choice-limiting actions under 24 C.F.R. §58.22 for HUD-funded housing projects; and (6) prohibitions on duplicating benefits under community development block grant disaster recovery funds or section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act for housing development or rehabilitation. This section also requires the Secretary of Housing and Urban Development to complete Build America, Buy America Act waivers under section 70914 within 30 days of publishing a written justification (with automatic approval if not completed).

This section establishes minimum building code standards for housing constructed or rehabilitated during a national emergency described in section 2, requiring compliance with (1) the 2009 International Residential Code (IRC), or an equivalent code including amendments adopted by state, local, Indian tribal, or territorial governments, for site-built housing; or (2) part 3280 of title 24, Code of Federal Regulations, for manufactured housing.

This section establishes a “Pro-Growth Requirement” as a mandatory funding condition—developed jointly by the Under Secretaries for Policy at the Department of Housing and Urban Development and the Department of Transportation within 30 days of enactment—for states and units of general local government to receive surface transportation block grant program funding under 23 U.S.C. 133 during a national emergency specified in section 2 of this Act. To comply, a grantee must demonstrate (1) positive housing growth compared to the previous year, as measured by the Census Bureau's Building Permit Survey and Address Count Listing Files; (2) actions to remove barriers to housing development and rehabilitation, such as reducing minimum lot sizes, allowing manufactured homes or duplexes in single-family zones, eliminating off-street parking requirements, streamlining permitting, or allowing accessory dwelling units (with 14 specified examples); and (3) clear, measurable housing growth objectives in its consolidated plan under 24 C.F.R. part 91. Grantees may appeal noncompliance with the agency administering the grant upon showing measurable actions to increase housing supply.

This section prohibits states and units of general local government, during a national emergency described in section 2, from imposing or implementing any land-use regulation that imposes a substantial burden on the construction or rehabilitation of residential housing.

This section terminates the national emergency described in section 2 on the earlier of (1) the date on which 4,000,000 additional residential housing units, as compared to the date of enactment, are constructed or rehabilitated in the United States; or (2) October 1, 2031.