Innovation Fund Act

Creates a competitive HUD grant program called the Innovation Fund that pays local governments and Tribal governments for demonstrable increases in housing supply. Grants may be used for producing and preserving attainable housing, zoning and permitting reforms, infrastructure, planning, and other activities tied to increasing housing availability.

The program sets application and priority rules, defines eligibility and key terms, caps individual grant sizes, aims to award at least 25 grants per year when funds permit, and authorizes $200 million per year for FY2027–FY2031 (adjusted for inflation).