Choice Neighborhoods Initiative Act of 2025

This bill sets up a HUD grant program to help rebuild neighborhoods with extreme poverty and severely run‑down housing. It funds local plans to replace and fix housing, add services, improve access to jobs, schools, and transit, and create stable, mixed‑income communities . Local governments, housing agencies, and some nonprofits can apply for competitive grants in these high‑need areas.

It puts current residents first. Every demolished public or assisted unit must be replaced one‑for‑one, and at least one‑third of replacements must be built in the same area, unless it’s unsafe or not allowed. Residents have a right to return, get first pick of new units, and cannot be kept out by new screening rules. Before applying, there must be a public meeting about the plan, and residents must get at least 90 days’ notice before any move, plus paid moving costs, counseling, and at least 150 days to use a voucher if they choose one. The program must follow fair housing and accessibility rules .

• Who is affected: Residents of public or assisted housing in neighborhoods with extreme poverty; local governments and housing agencies seeking to revitalize these areas.
• What changes:
  • Competitive HUD grants to rebuild housing and invest in services, education, and access to jobs and transit.
  • One‑for‑one replacement of any demolished public or assisted units; at least one‑third rebuilt on‑site; right to return with first preference and no new barriers .
  • Resident voice and protections: public meeting before applying; 90‑day relocation notice; paid moving costs and counseling; at least 150 days to use a voucher .
  • Fair housing and accessibility compliance; no use of grant funds for eminent domain .
• When and funding: Authorizes $1 billion for fiscal year 2026, plus ongoing funds; most support goes to public housing. Also authorizes rental assistance to cover relocation and returns. HUD can pull back funds if a project stalls and must report yearly and post grant documents online .