Sponsors (4)
The bill reduces HUD spending and clarifies eligibility by limiting federally funded housing assistance to U.S. nationals and lawful permanent residents, but at the cost of excluding many immigrants from aid, increasing homelessness risk, shifting costs to local systems, and imposing administrative burdens on providers.
U.S. taxpayers may see reduced federal spending on HUD-funded housing when eligibility is limited to U.S. nationals and lawful permanent residents, aligning grant outlays with narrower immigration-based eligibility rules.
HUD grantees (local governments and nonprofits) will have clearer, statutory eligibility rules for Section 106-funded assistance starting FY2024, reducing legal uncertainty about who may be served.
States, localities, and tribes that choose to limit housing assistance to lawful permanent residents can retain access to HUD §5303 planning grants, preserving grant eligibility for jurisdictions that adopt the narrower rules.
Non-U.S. nationals and non–lawful permanent residents will be barred from Section 106 housing assistance, directly removing or preventing access to housing aid for immigrant individuals and families who are not LPRs.
Low-income communities and service providers may lose program reach and continuity — jurisdictions may refuse eligible non‑LPR applicants or decline HUD grants to comply, increasing homelessness and housing instability among vulnerable people.
States, localities, and tribal governments that provide assistance to non‑citizen residents risk losing §5303 planning grants or may forgo HUD funding, reducing funding for housing planning and complicating tribal sovereignty over eligibility decisions.
Based on analysis of 3 sections of legislative text.
Stops certain HUD community development and planning grants from being used to assist people who are not U.S. nationals or lawful permanent residents and makes grant eligibility conditional on that policy.
Introduced January 3, 2025 by Andrew S. Biggs · Last progress January 3, 2025
Prohibits use of certain federal community development grants to provide assistance to people who are neither U.S. nationals nor lawful permanent residents, and bars grant awards to states, local governments, or tribes that run programs that provide such assistance. It applies to Section 106 grants made in fiscal year 2024 and later and adds a general limitation on eligibility for other community development planning grants. The measure does not create new funding; instead it conditions existing HUD grant eligibility on the recipient’s policies toward providing assistance to non‑nationals and non‑permanent residents. Recipients that provide such assistance would be ineligible for specified federal grants going forward, which could require policy changes at the state and local level and affect nonprofits and service providers who work with immigrant and low‑income communities.