Last Tuesday, the Senate Banking Committee advanced the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 — a sweeping effort to address the nation’s housing crisis. But many Americans are still wondering what exactly the bill does and whether it will succeed.
From the Great Depression to today
The ROAD to Housing Act draws inspiration from the 1937 Wagner-Steagall Housing Act, a New-Deal-era law that created the U.S. Housing Authority and funded public housing during the Great Depression. Similarly ambitious, the current bill aims to reshape housing policy nationwide.
But major differences exist between the economic climate of the Great Depression and today. In the 1930s, even major construction companies struggled to build houses. Housing shortages existed across the financial spectrum, with a lack of affordable and expensive homes alike. As a result, such companies fell into a slump, and diverse communities of Americans were left unhoused. The 1934 National Housing Act addressed construction employment problems and housing availability for wealthier Americans — and the Wagner-Steagall Act was passed later on to address the needs of less privileged communities.
Now, as home prices continue to rise, the success of construction and real estate agencies is of less concern. Instead, legislators reckon with the increasing demand for larger homes, all while still developing affordable housing. As the economy succeeds, costs increase, leaving working and middle class families in an especially precarious position.
What’s in the new bill?
Co-sponsored by Republican Sen. Tim Scott of South Carolina and Democratic Sen. Elizabeth Warren of Massachusetts, the ROAD to Housing Act merges more than two dozen earlier housing proposals into one bipartisan package.
The ROAD to Housing Act tackles the housing crisis through nationwide reforms, including stronger oversight by the U.S. Department of Housing and Urban Development, expanded development programs like the Rental Assistance Demonstration and incentives for small-dollar mortgages under $100,000. It also boosts federal data collection on homelessness and shifts bipartisan housing efforts from state-initiatives to a national scale through its eight legislative titles.
What happens next?
Now that the bill has passed the Senate Banking Committee, it heads to the Senate floor for debate. If passed, it must then clear the House and undergo reconciliation before heading to President Donald Trump’s desk. The President has not yet said whether he will sign it.
However, according to GovTrack.us, the ROAD to Housing Act has a 71% chance of being enacted. Agreeing with this prognosis, Republican Sen. John Kennedy of Louisiana has expressed confidence that “the president will sign it.”
But will the bill work?
The ROAD to Housing Act addresses multiple root causes of the housing crisis. Its short-term funding could bring immediate relief, especially for low-income Americans and first-time homebuyers.
However, long-term sustainability remains a concern. Critics warn that, without lasting incentives for affordable development, reliance on government loans could falter. With the 2024 federal deficit at $1.83 trillion, some question whether the U.S. can afford such expansive spending without exacerbating debt.
Overall impact
Whether it succeeds or not, the ROAD to Housing Act makes a rare bipartisan attempt to tackle a complex national issue. If passed, it could help shift housing policy from a patchwork of local fixes to a coordinated federal approach – potentially laying the foundation for lasting change.
