Innovation Fund Act

S 3067, the Innovation Fund Act, establishes a competitive grant program administered by the Department of Housing and Urban Development (HUD) to help eligible cities, counties, and tribes increase local housing supply. The program provides annual grants (ranging from $250,000 to $10 million) to entities that have demonstrated improved housing supply growth, with priority given to innovative zoning reforms and initiatives that expand "attainable housing" (housing serving households at 60-120% of area median income). Grants can fund activities like revising parking requirements, eliminating restrictive zoning, streamlining permitting, and creating mixed-income developments. The bill authorizes $200 million annually (adjusted for inflation) for fiscal years 2027-2031 and explicitly states it does not override local zoning laws or affect existing housing program requirements.