Sponsor
Maxine Waters
Representative · D-CA
Representative · D-CA
The bill increases and stabilizes funding for affordable housing (helping low-income renters, communities, and nonprofit developers) but requires Federal Home Loan Banks to divert more earnings, which could weaken bank cushions and prompt cost-shifting to borrowers, bank members, or taxpayers.
Low-income people, renters, and community development projects will get larger and more predictable Affordable Housing Program (AHP) funding because Federal Home Loan Banks must contribute at least $100 million annually and at least 15% of prior-year net income beginning 2026.
Nonprofit developers and smaller housing developers will have steadier and potentially larger grants/loans available for affordable housing projects thanks to increased and predictable AHP resources.
Federal Home Loan Banks will retain less earnings and have smaller capital cushions because 15% of prior-year net income is redirected to AHP, which could weaken their financial resilience or operational flexibility.
Community bank members, small-business borrowers, and homeowners could face reduced credit availability, higher borrowing costs, or lower dividends if Banks offset the higher mandated contributions by tightening lending or raising fees.
Taxpayers or Bank members may indirectly bear part of the cost (through higher fees, reduced dividends, or other pass-throughs) if Banks shift the financial burden of the increased contributions.
Based on analysis of 1 section of legislative text.
Requires each Federal Home Loan Bank to contribute 15% of the prior year’s net income to the Affordable Housing Program starting in 2026, with an aggregate floor of $100 million.
Requires each Federal Home Loan Bank to contribute 15% of the previous year’s net income to the Banks’ Affordable Housing Program (AHP) beginning in 2026 and each year thereafter, with an aggregate annual floor of at least $100 million. It also clarifies historical contribution language covering 1995 through 2025. The change raises the required annual transfer into AHP from whatever level was set by prior law to a fixed percentage of bank net income (subject to proration and a $100 million system-wide minimum), increasing predictable funding for affordable housing activities supported by the Federal Home Loan Banks.
Official title: To increase the mandatory contribution amount of Federal Home Loan Banks to the Affordable Housing Program, and for other purposes.
Introduced September 8, 2026 by Maxine Waters · Last progress September 8, 2026