The bill clarifies eligibility and aligns HUD grant flows with immigration status—potentially reducing federal outlays and legal uncertainty for grantees—but does so by barring many non‑citizen residents from housing assistance, risking higher homelessness, lost planning funds for communities and tribes, and greater administrative and local costs.
State, local, tribal governments and nonprofit HUD grantees get clearer, statutory eligibility rules and (if they limit assistance to lawful permanent residents) can retain access to HUD §5303 planning grants, reducing legal uncertainty for administrators.
Taxpayers could see reduced federal spending on housing assistance to non‑nationals and non‑LPR immigrants because the bill explicitly excludes those groups from Section 106-funded assistance, aligning grant outlays with immigration-based eligibility.
Non‑U.S. nationals and non‑permanent residents (many immigrant individuals and families) would be barred from Section 106 and related local housing assistance, sharply reducing their access to housing supports.
Low‑income communities, local governments, and nonprofit providers may lose housing and homelessness assistance as programs must refuse eligible non‑LPR applicants, undermining program reach and continuity and likely increasing housing instability.
Jurisdictions that decline HUD grants to avoid the ban could forfeit §5303 planning and community development funding, reducing resources for local housing planning and harming low‑income renters and communities.
Based on analysis of 3 sections of legislative text.
Bars Section 106 funds (FY2024+) from assisting non‑U.S. nationals/non‑LPRs and makes Section 103 grant recipients ineligible if they operate programs serving those persons.
Prohibits use of certain HUD community development grants to assist non‑U.S. nationals and non‑lawful permanent residents and bars grant awards to jurisdictions that operate programs serving those individuals. The change applies to Section 106 grants in FY2024 and later and conditions eligibility for Section 103 grants on a recipient not providing assistance to those non‑eligible persons.
Official title: To prohibit grants provided under section 106 of the Housing and Community Development Act of 1974 from being used to assist persons who are neither a national of the United States nor lawfully admitted for permanent residence, and for other purposes.
Introduced January 3, 2025 by Andrew S. Biggs · Last progress January 3, 2025