Build Homes, Not Hate Act of 2026
- Sponsor
- Rep. Wasserman Schultz, Debbie [D-FL-25]
- Committees
- Judiciary Committee (primary)
- Last action
- Jul 30, 2026
Bottom line
The bill creates a significant new federal grant program under FEMA to address homelessness and housing affordability, funded by reallocating $70 billion from U.S. Immigration and Customs Enforcement.
What it actually does
This bill establishes a new grant program within the Federal Emergency Management Agency (FEMA) to fund the creation of housing units and provide direct homelessness response, supportive housing, and transitional services. It appropriates $70 billion for fiscal year 2027 for these purposes, offset by a permanent rescission of $70 billion from unobligated balances of U.S. Immigration and Customs Enforcement (ICE).
Proponents argue
Supporters would argue that this bill provides urgently needed, substantial funding to combat the growing national crisis of homelessness and housing insecurity. They contend it redirects federal resources from enforcement activities to humanitarian aid and community development, addressing fundamental needs for stable housing and supportive services.
Opponents contend
Opponents would likely criticize the bill's funding mechanism, arguing that the permanent rescission of $70 billion from ICE significantly undermines national security, border control, and immigration enforcement capabilities. They might also question FEMA's institutional capacity and expertise to manage a large-scale, long-term housing and social services program, which traditionally falls under agencies like HUD.
The bill is exceptionally concise, allowing for a quick and clear understanding of its core provisions and financial implications for any interested reader.
Section 2(a)
Establishment of Grant Program
This provision mandates the Administrator of the Federal Emergency Management Agency (FEMA) to establish a grant program within one year of the bill's enactment. The purpose of this program is to provide grants to eligible entities for creating housing units and delivering direct homelessness response, supportive housing, and transitional services to individuals and families experiencing or at risk of homelessness.
Supporters argue
Supporters argue that establishing this grant program under FEMA allows for a rapid and robust federal response to the homelessness crisis, leveraging FEMA's capacity for large-scale program deployment. They believe it fills a critical gap in federal support for housing and services.
Critics contend
Critics may argue that placing this program under FEMA, an agency primarily focused on disaster response, is inappropriate and could lead to inefficiencies or a lack of specialized expertise compared to housing-focused agencies like HUD. They might contend it represents an overreach of FEMA's traditional mission.
Tradeoffs
The provision balances the urgency of addressing homelessness with questions about the most appropriate federal agency to lead such a long-term, non-disaster-related initiative.
Section 2(b)
Allocation of Grant Funds
This section specifies how the appropriated funds will be distributed among different activities. Not less than $54 billion is designated for creating housing units (building, acquiring, rehabilitating, etc.). Not less than $14 billion is allocated for direct homelessness response, supportive housing, and transitional services. A maximum of $2 billion is set aside for administration, technical assistance, oversight, and program integrity.
Section 2(c)
Permitted Housing Activities
This subsection details the various methods eligible entities can use to create housing units with grant funds. These methods include new construction, modular construction, manufactured housing, acquisition and rehabilitation of existing properties, conversion of vacant buildings (like hotels or offices), preservation of affordable housing, site acquisition, infrastructure development, environmental remediation, accessibility modifications, and establishing project operating reserves.
Section 2(d)
Grant Allocation Priorities
This provision grants the FEMA Administrator discretion to award grants through formula, competition, or a combination of both. It also mandates that the Administrator prioritize communities with high rates of unsheltered homelessness, chronic homelessness, or severe housing cost burdens, particularly those with recent substantial increases in average rent costs.
Section 2(g)
Prohibition on Immigration Enforcement Uses
This subsection explicitly prohibits the use of any funds made available under this section for immigration enforcement, detention, removal operations, border wall construction, surveillance for immigration enforcement purposes, or reimbursement of costs related to immigration enforcement.
Section 2(i)
Appropriation for Grant Program
This section appropriates $70,000,000,000 to the Administrator of the Federal Emergency Management Agency for fiscal year 2027. These funds are designated to carry out the grant program established by the bill and will remain available until September 30, 2032.
Section 2(j)
Rescission of ICE Funds
This provision permanently rescinds $70,000,000,000 from the unobligated balances of amounts previously made available to U.S. Immigration and Customs Enforcement (ICE) by sections 90003 and 100052 of Public Law 119-21. This rescission directly offsets the appropriation for the new FEMA grant program.