This bill expands eligibility for VA home loans to certain reserve component members and National Guard personnel who previously did not qualify as veterans. It creates a new category for individuals with at least 14 days of qualifying service (including inactive duty training, annual training, or full-time National Guard duty) who complete entry-level training. These members gain access to guaranteed home loans but must pay an additional 1% loan fee. The VA must notify qualifying members after they finish training, and the changes apply retroactively to service since September 11, 2001.
HR 7138 disallows tax deductions for mortgage interest and depreciation on single-family homes (1-4 units) owned by large investment entities with over $100 million in assets, while imposing a 100% excise tax on sales or transfers of such properties. The bill directly affects institutional landlords (e.g., large real estate investment firms), excluding government entities, nonprofits, and federally assisted housing. Revenue from the tax will fund low-income housing programs via the Housing Trust Fund. It also prohibits Fannie Mae, Freddie Mac, and Ginnie Mae from purchasing or guaranteeing mortgages for these properties. The provisions apply 18 months after enactment.
This bill requires five federal agencies (Housing and Urban Development, Agriculture, Veterans Affairs, Treasury, and the Federal Housing Finance Agency) to coordinate housing data sharing and jointly propose policy solutions. Within one year of enactment, the agencies must establish a shared agreement and submit a report to Congress addressing mortgage costs, housing construction barriers, local regulations, insurance availability, down payment assistance, and disaster resilience. The report will outline specific proposals to improve housing affordability and market efficiency. This is a procedural bill focused on interagency coordination, not direct policy changes or benefits for homeowners.
Homes for Every Local Protector, Educator, and Responder Act of 2025 or the HELPER Act of 2025 This bill establishes a program administered by the Department of Housing and Urban Development to provide mortgage assistance to law enforcement officers, elementary and secondary school teachers, firefighters, or other first responders. Specifically, these individuals may be eligible for a first-time mortgage on a primary family residence with no down payment. Instead, the mortgage is subject to a one-time, up-front mortgage insurance premium.
HR 5508, the Mortgage Insurance Freedom Act, stops the government from collecting annual mortgage insurance premiums on FHA-insured mortgages once the remaining loan balance falls to 78% or less of the home's original purchase price or appraised value. It directly affects homeowners with FHA loans who reach this balance threshold, eliminating their annual insurance payments. The bill requires the Secretary of Housing and Urban Development to create a process for homeowners to prove their loan balance meets the 78% threshold and to conduct outreach about this change. An exception applies if the Mutual Mortgage Insurance Fund's capital ratio drops below 2%, temporarily keeping premiums in effect for certain mortgages. This applies only to mortgages endorsed for FHA insurance after the bill's enactment.
This bill blocks the Federal Housing Finance Agency (FHFA) and mortgage enterprises (like Fannie Mae and Freddie Mac) from implementing specific mortgage fee changes announced in January 2023. It specifically revokes the FHFA's updated single-family mortgage pricing framework and related guidance documents. The bill does not affect the existing practice of risk-based pricing for mortgage credit fees, which remains permitted. It directly impacts mortgage lenders and borrowers by halting the 2023 fee changes without altering current risk-based fee structures.
This bill permanently excludes forgiven mortgage debt on primary residences from taxable income under the Internal Revenue Code. It directly affects homeowners who have their mortgage debt forgiven (e.g., through short sales or foreclosure) by preventing them from owing income tax on the forgiven amount. The key change amends tax code Section 108(a)(1)(E) to remove the temporary expiration date, making the exclusion permanent. The provision applies to mortgage debt discharged after December 31, 2025. This simplifies tax treatment for affected homeowners without creating new government programs or benefits.
HR 6726 amends housing counseling programs under the 1968 Housing and Urban Development Act to improve oversight and effectiveness. It requires counseling organizations to serve diverse geographic areas (urban and rural) and mandates regular performance reviews by HUD, including evaluating counselors based on borrower default rates for covered loans. The bill also requires HUD to provide foreclosure mitigation counseling to borrowers 30+ days delinquent on FHA, VA, USDA, or similar loans, with costs covered by the Mutual Mortgage Insurance Fund if eligibility rules are met. These changes directly affect HUD-funded counseling agencies, mortgage counselors, and borrowers with specific loan types facing delinquency. The reforms focus on accountability, quality control, and expanding access to foreclosure prevention services.
# Summary of Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026
This comprehensive appropriations bill allocates funding for the Department of Transportation, Department of Housing and Urban Development (HUD), and several related agencies for fiscal year 2026.
## Key Funding Areas
1. **Department of Transportation**: Includes funding for transportation infrastructure, safety programs, and related initiatives.
2. **Department of Housing and Urban Development (HUD)**:
- Tenant-based rental assistance (Section 8)
- Public housing operating and capital funds
- Lead hazard reduction programs
- Fair housing activities
- Homeless assistance grants
- Community development programs
- Healthy homes initiatives
3. **Related Agencies**: Funding for the Access Board, Federal Maritime Commission, National Railroad Passenger Corporation (Amtrak), National Transportation Safety Board, Neighborhood Reinvestment Corporation, and Surface Transportation Board.
## Major Restrictions and Provisions
1. **Funding Restrictions**:
- No funds may be used for certain types of training (e.g., training inducing emotional stress, religious content, or designed to change personal values)
- No funds for first-class airline travel in contravention of federal regulations
- No funds for certain projects (e.g., no funds to support projects using eminent domain for private economic development)
- No funds to facilitate new scheduled air transportation to Cuban Government-confiscated property
2. **Reporting Requirements**:
- Quarterly reports to Congress on uncommitted, unobligated, recaptured, and excess funds
- Semi-annual reports on properties with failing physical inspections
3. **Fund Transfer Rules**:
- Strict limitations on reprogramming funds without Congressional approval
- Restrictions on transferring funds between accounts (e.g., no more than 10% or $5 million transfer between offices)
- Specific rules for transfer of funds to the Information Technology Fund
4. **Other Significant Provisions**:
- Restrictions on using funds for certain types of litigation
- Requirements for transparency in consulting services
- Limits on using funds for executive-legislative activities
- Prohibitions on using funds for certain types of contracts (e.g., "HAP Contract Support Services" solicitation)
The bill contains numerous specific restrictions on how funds may be used, with over 100 provisions detailing what the funds cannot be used for, reflecting a strong emphasis on fiscal responsibility and program accountability.
HR 918 makes a tax deduction for mortgage insurance premiums permanent for homeowners. The bill removes a temporary expiration clause in the tax code, ensuring that individuals who pay mortgage insurance (typically those with less than 20% down payment on a home loan) can continue deducting these costs on their federal taxes. This change applies to premiums paid after December 31, 2024, providing ongoing tax relief for affected homeowners without altering the deduction's eligibility rules. The policy change directly affects millions of homeowners who rely on this deduction to reduce their taxable income.
