The House Financial Service’s Subcommittee on Housing and Insurance held a hearing for the HOME Reform Act of 2025, a bipartisan proposal to modernize the HOME Investment Partnerships Program for the first time since 1992.

The Committee discussed key themes of the bill: reducing federal requirements that drive up costs across all affordable housing, including environmental reviews, Build America Buy America (BABA), Davis Bacon, and Section 3.

  • In Context: Chairman Mike Flood (R-NE) describes these as the “Four Horsemen of the Housing Apocalypse.”
  • All four witnesses—from COSCDA, NAHRO, Habitat for Humanity International, and Mercy Housing California—unanimously supported streamlining reform efforts to lower costs and accelerate construction of affordable housing.

While there was bipartisan agreement on the need for reform, several Democratic members raised concerns, including:

  • Expanding eligibility up to 100 percent of AMI, instead of focusing exclusively on households at 80 percent and below;
  • Eliminating Davis-Bacon wage rules, potentially undermining fair labor standards;
  • Making BABA compliance more achievable, rather than providing exemptions; and
  • Rolling back environmental review requirements, which they warned could result in long-term environmental harm.

Above all, Democrats were united in their concern over funding: both President Trump’s FY 26 budget and the House Appropriations proposal completely eliminate funding for the HOME program.

  • Why This Matters: Even with broad support for reform, none of these improvements can be implemented without funding. As the Senate begins crafting its FY2026 budget, advocacy to Senate Appropriators will be critical to ensure the HOME program continues.
    • NH&RA signed this ACTION Campaign letter sent to Senate Appropriators to protect HOME funding.