Jul 11, 2026
It came down to the wire, but at midnight last night, the 21st Century ROAD to Housing Act cleared its final hurdle — one the president himself set in its path — to become law.
The bill had overwhelming bipartisan support, passing 85-5 in the Senate and 396-13 in the House in late June. Members of Congress were convinced President Donald Trump would sign it into law at a ceremony on June 24.
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But he shocked them all that day, abruptly cancelling the event in an announcement made on Truth Social. By withholding his signature, Trump aimed to pressure Congress into passing the SAVE America Act, a voting eligibility bill that would limit mail-in voting and require voters to provide proof of citizenship. It’s still being considered in the senate.
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Trump described the housing bill as relatively “unimportant” and “a big yawn.” He reiterated his position on Truth Social Friday morning, refusing to sign the housing bill as a “protest.”
Dennis Shea, executive vice president of the Bipartisan Policy Center and chair of the J. Ronald Terwilliger Center for Housing Policy, said there’s a lot riding on the bill that just became U.S. law. The bill contains reforms to help increase housing supply and affordability.
“Housing costs are impacting communities of all kinds — red states, blue states, cities, rural communities, everywhere,” he told Moneywise. “There’s a desire across party lines to do something about it.”
Here’s why the bill was able to pass, what to expect from it and why housing affordability won’t change overnight — even as the law does.
When a bill doesn’t need the president’s signature
The bipartisan bill was all but guaranteed to become law when it cleared Congress with more than a two-thirds majority vote — known as a supermajority — in both chambers. Such bills automatically become law after 10 days, even without the president’s signature. There are only two exceptions to that rule:
- The president vetoes the bill. In that case, the bill would have to go back to Congress for revotes in the House and Senate.
- Congress adjourns during the 10-day waiting period. That would trigger what is called a pocket veto. Without the president’s signature, the bill would die.
Shea did not expect Trump to veto the bill, noting that Trump’s own administration had released policy statements endorsing prior versions of it.
“There’s a recognition across the country that we’ve underbuilt housing since the Great Recession,” he said. “There’s a mismatch between supply and demand.”
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He said that’s led to a mismatch between what people earn and what they can afford.
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What’s next for the housing act — and affordability
To be considered affordable, housing should only require 30% of a household’s total income.
The median yearly earnings for full-time workers in the U.S. is about $67,000 a year. But as the Visual Capitalist reports, the average American needs to make nearly $70,000 annually to rent a modest two-bedroom apartment.
Meanwhile, the average monthly mortgage breached $2,000 this year, the highest ever recorded. Following the 30% rule of thumb, that would mean the average homeowner would need to earn $80,000 a year to afford their mortgage payments.
Shea said the 21st Century ROAD to Housing Act is designed to improve affordability by increasing supply — specifically by cutting red tape. For example, it eliminates a long-standing rule that required mobile homes to be built on steel chassis so they can be moved if required. That’s expected to cut construction costs by up to $10,000.
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It also earmarks $200 million over seven years for an Innovation Fund that will reward communities for adopting pro-housing policies, like encouraging construction of accessory dwelling units (ADUs) like basement apartments, garden suites, and laneway houses.
Shea noted that the bill additionally sets aside $50 million in provisional grants to states and communities that fast-track housing based on designs out of a prereviewed government pattern book. Essentially, homebuilders would choose model homes from a government catalog and build them.
“This is all very meaningful and important, but addressing housing affordability is a challenge and it’s going to take many years to do this,” Shea said.
In other words, the waiting period for the housing bill may be over, but the affordability crisis is not.
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Laura Boast is an Associate Editor with Moneywise.com and a lifelong content creator who has reached international audiences at Discovery, CBC, Blue Ant Media, Bond Brand Loyalty and more.
