Three months after the enactment of the 21st Century Road to Housing Act, the agencies responsible for its implementation are still navigating the complexities of the new legislation. The act, which aims to facilitate home buying, has faced delays due to funding cuts affecting the involved government bodies, as reported by Realtor.com.
The 21st Century Road to Housing Act, which underwent extensive debate in Congress, was signed into law despite initial hesitations from President Donald Trump, who had previously supported the bill. Although the law officially took effect shortly after its submission to the White House, its practical impacts may take longer to materialize, particularly in light of budget constraints faced by federal agencies.
Implementation of the act requires federal agencies to develop new rules and guidance, a process that can be time-consuming. The legislation outlines approximately a dozen new programs, but these will require additional funding from future congressional approvals. Kristen Klurfield, associate director for housing at the Bipartisan Policy Center, noted that some programs might not receive funding until the fiscal year 2028 due to timing issues with the House budget.
The U.S. Department of Housing and Urban Development (HUD) is tasked with overseeing 88 of the 125 implementation items and has proposed nine new rules. However, the proposed rulemaking process, which includes public notice and comment, can take between 18 to 24 months to complete. Compounding these challenges, HUD has experienced significant staffing reductions, losing 650 full-time equivalents, which represents a 27% decrease in its workforce.
Lesli Gooch, CEO of the Manufactured Housing Institute, highlighted the extensive work ahead, indicating that states will also need to update their licensing and zoning laws to align with the new federal building codes. Liz Osborn, vice president of policy at Enterprise Community Partners, suggested that this period offers an opportunity for state and local governments to prepare and enhance housing supply in anticipation of the new provisions.
Political Implications Ahead of Midterms
Since the bill’s passage, lawmakers have been actively promoting its bipartisan nature, particularly as they gear up for the midterm elections. Representative Jim McGovern (D-MA) emphasized the urgent need for affordable housing solutions, while Representative French Hill (R-AR) praised the collaborative efforts that led to the bill’s advancement.
As discussions continue, some lawmakers have criticized the perceived slow pace of implementation. Senator Elizabeth Warren (D-MA) recently called out the Federal Housing Finance Agency for not moving quickly enough to enforce rules limiting institutional investors in the housing market. The ongoing dialogue underscores the political stakes surrounding housing affordability as the nation approaches the midterms.
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