Building and Maintaining Homeless Shelters Act
- Sponsor
- Sen. Smith, Tina [D-MN]
- Committees
- Banking, Housing, and Urban Affairs Committee (primary)
- Last action
- Sep 24, 2026
Bottom line
This bill aims to significantly increase the physical capacity of homeless shelters and permanent supportive housing units nationwide through a new federal grant program, with specific set-asides for tribal and rural areas and prioritization for vulnerable populations.
What it actually does
The bill establishes a new competitive grant program within the McKinney-Vento Homeless Assistance Act, administered by the Secretary of Housing and Urban Development (HUD). This program would provide $500 million annually for fiscal years 2027 through 2031 to eligible entities for capital costs related to constructing, rehabilitating, or acquiring shelters and permanent supportive housing, as well as other physical infrastructure needs to address homelessness.
Proponents argue
Proponents would argue that this bill directly addresses the critical shortage of safe and adequate housing and shelter options for homeless individuals and families across the country. By focusing on capital costs and increasing capacity, it provides tangible solutions to a persistent social challenge, particularly benefiting vulnerable populations like youth, LGBTQ+ individuals, and people of color, while also ensuring domestic content and fair wages for construction.
Opponents contend
Potential opponents might argue that while addressing homelessness is important, a large-scale federal grant program for construction might not be the most efficient or effective use of taxpayer dollars, potentially leading to bureaucratic inefficiencies or projects that don't fully align with local needs. Some might also raise concerns about the specific prioritization criteria or the domestic content and prevailing wage requirements adding to project costs.
The bill is concise and clearly written, making it accessible for a reader to understand its core provisions and implications within a short timeframe.
Section 2(a), adding Subtitle E, Section 496(a) to the McKinney-Vento Homeless Assistance Act.
Creation of Grant Program for Shelter and Permanent Supportive Housing Construction
This provision directs the Secretary of Housing and Urban Development (HUD) to establish a competitive grant program. The purpose of these grants is to help shelters and permanent supportive housing facilities address their physical infrastructure needs and to increase the overall capacity of shelters and the number of permanent supportive housing units across the nation.
Supporters argue
Supporters argue this program directly tackles the root cause of homelessness by providing essential infrastructure, offering more safe spaces and pathways to stability for vulnerable populations.
Critics contend
No specific opposition is typically raised against the general concept of providing grants for homeless assistance infrastructure, though debates may arise over funding levels or administrative efficiency.
Tradeoffs
The tension lies between the immediate need for housing solutions and the time and resources required for construction and infrastructure development.
Section 2(a), adding Subtitle E, Section 495(1) to the McKinney-Vento Homeless Assistance Act.
Broad Eligibility for Grant Applicants
This section broadly defines who can apply for these grants, including state, local, and Indian tribal governments, tribally designated housing entities, public housing agencies, and 501(c)(3) non-profit organizations. It explicitly excludes individuals, foreign entities, and sole proprietorships.
Section 2(a), adding Subtitle E, Section 496(c) to the McKinney-Vento Homeless Assistance Act.
Capital Costs for Construction, Rehabilitation, and Acquisition
Grant funds can be used for capital costs related to constructing, rehabilitating, or acquiring existing shelters or permanent supportive housing. This also includes obtaining property for new facilities and other physical infrastructure needs such as energy efficiency improvements, mobile health clinics, day centers, rapid rehousing, safe parking programs, and the development of non-congregate shelters (e.g., hotel conversions). Up to 10% can be used for administrative costs.
Section 2(a), adding Subtitle E, Section 496(d) to the McKinney-Vento Homeless Assistance Act.
Equitable Distribution and Prioritization for Vulnerable Populations
The Secretary must ensure that 50% of appropriated funds support shelters and 50% support permanent supportive housing. Additionally, the Secretary may prioritize projects that respond to the needs of individuals who are homeless, families, youth, individuals fleeing domestic violence, LGBTQ+ individuals, or individuals who are Black, Indigenous, or people of color.
Section 2(a), adding Subtitle E, Section 496(e) to the McKinney-Vento Homeless Assistance Act.
Nondiscrimination in Grant Awards
This provision mandates that the Secretary cannot discriminate against faith-based groups when awarding grants. However, it also prohibits making awards to eligible entities that discriminate on the basis of sexual orientation, gender identity, or sex stereotype.
Section 2(a), adding Subtitle E, Section 496(f) and (g) to the McKinney-Vento Homeless Assistance Act.
Guaranteed Funding for Tribal Governments and Rural Areas
The bill mandates that at least 5% of the appropriated funds must be awarded to Indian tribal governments or tribally designated housing entities. Additionally, at least 40% of the funds must be awarded to eligible entities located in rural areas.
Section 2(a), adding Subtitle E, Section 496(h) to the McKinney-Vento Homeless Assistance Act.
"Buy America, Build America" and Davis-Bacon Act Compliance
Any construction project funded by these grants must use materials that comply with domestic content procurement preferences, as defined by the Build America, Buy America Act. Furthermore, laborers and mechanics involved in these projects, including those employed by contractors and subcontractors, must be paid prevailing wages in accordance with the Davis-Bacon Act.
Section 2(a), adding Subtitle E, Section 497 to the McKinney-Vento Homeless Assistance Act.
Funding Authorization for the Grant Program
This section authorizes the appropriation of $500,000,000 (five hundred million dollars) for each of fiscal years 2027 through 2031 to carry out the grant program. This means a total of $2.5 billion over five years is authorized, though actual appropriation would require separate legislative action.
The definition of "permanent supportive housing" includes a specific reference to the definition of "homeless" as found in paragraphs (1), (2), and (4) of section 578.3 of title 24, Code of Federal Regulations, or any successor regulation.
Section 2(a), adding Subtitle E, Section 495(3)
Why it matters:This is standard legislative practice to avoid reprinting lengthy existing definitions and to ensure consistency with current administrative interpretations. It is not intended to be evasive.
Case for: Supporters would argue that referencing existing regulatory definitions ensures consistency with established federal homelessness programs and avoids creating conflicting definitions, streamlining implementation for agencies and applicants already familiar with HUD's criteria.
Case against: Critics might argue that relying on external regulations makes the bill less transparent and harder for the average citizen or even some stakeholders to fully comprehend without additional research, potentially obscuring the true scope of beneficiaries.
Estimated impact: This reference defines the target population for permanent supportive housing, which is 50% of the authorized $2.5 billion in funding.