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The bill prioritizes preserving HUD funding for lawfully present residents and jurisdictions that restrict assistance while cutting off federal-funded housing support to non‑LPR noncitizens — a trade-off that reduces federal outlays for some taxpayers but risks substantial loss of services, funding, and stability for immigrants, low‑income communities, tribal programs, and local service systems.
Lawful permanent residents and U.S. nationals who receive HUD section 106 assistance: will retain eligibility and continue to receive program funds (no change for these groups).
State, local, and tribal governments that restrict housing assistance to lawfully present immigrants: will remain eligible for HUD community development grants (so jurisdictions that limit benefits can continue to receive funding).
Taxpayers: federal outlays for HUD community development grants may be reduced in jurisdictions that provide benefits to undocumented immigrants, potentially lowering some federal spending.
Non‑citizen residents who are not lawful permanent residents: will be excluded from receiving HUD section 106 housing and community development assistance starting FY2024, causing direct loss of local housing support for many immigrants and mixed‑status households.
State, local, and tribal governments and nonprofit providers: risk losing HUD community development grants if they continue to provide housing aid to undocumented immigrants, reducing funding for local housing programs and incentivizing jurisdictions to stop serving these residents.
Low-income communities and renters: may experience reduced housing and community development services and increased housing instability and costs (shifting demand to emergency shelters and other costly safety-net services) if jurisdictions forfeit grants or exclude residents.
Introduced January 3, 2025 by Andrew S. Biggs · Last progress January 3, 2025
Prohibits use of federal housing and community development grants to assist people who are neither U.S. nationals nor lawful permanent residents, and blocks grant awards to states, local governments, or Indian tribes that operate programs providing such assistance. The restriction applies to grants made under the relevant Housing and Community Development Act authorities beginning in fiscal year 2024 and continuing thereafter.