Arizona Sen. Gallego Unveils New Housing Affordability Blueprint

Housing affordability is poised to dominate the 2026 midterm election campaigns, and Sen. Ruben Gallego wants federal policy to keep pace.​​

In a sweeping new housing blueprint, the Arizona Democrat outlines a four‑pillar agenda to address the crisis.​​ According to “The Path Home: Rebuilding the American Dream and Restoring Housing Affordability,” an array of recommended policy changes could spur at least 8.5 million new and preserved homes over the next decade.​​

As states from California to Texas to Florida relax zoning and streamline permitting, Gallego’s plan notes that federal policy is lagging and relies on programs built for a housing market that differs from today.​​

The first‑term senator drew inspiration from his upbringing.​​

In a statement provided, Gallego recalls that his single mother worked constantly to keep a modest two‑bedroom apartment for their family, and that a government‑backed loan later helped him buy her a home after high school.​​

He said that kind of upward path is far less attainable today, with many Americans struggling just to cover rent.​​

“A safe, affordable place to call home is the foundation of success in this country,” he said.​​

“We owe it to the young people of this country to make that achievable again, and that’s exactly what this plan sets out to do.”​​

His plan builds on legislation he has already introduced.​​

That record includes a December bill that would lower the EB‑5 visa investment threshold from $1 million to $800,000 when tied to affordable housing construction.​​

“Other policies are things we hope to turn into legislation this year and going into the future,” his media representative tells The Builder’s Daily.​​

Framing a housing plan on four pillars​​

Gallego’s blueprint casts housing as core economic infrastructure.​​ The first pillar centers on a construction surge to build and preserve more homes across income levels.​​

Supporting that pillar, the tax code and federal finance tools do much of the work.​​

Gallego calls for expanding and updating the Low‑Income Housing Tax Credit and creating a new tax credit for office‑to‑residential conversions.​​

He also wants to modernize FHA loan limits and allow Fannie Mae and Freddie Mac to invest more equity in affordable projects.​​

An additional provision would unlock federal land and underused properties, including post offices and airport‑adjacent parcels.​​

Such investments would tie federal housing dollars to prevailing wage rules, apprenticeships, and project labor agreements.​​

A second pillar targets red tape that slows projects and inflates costs.​​

That section of the plan mirrors legislation that a growing number of cities and states have enacted, while others are considering it, to ease zoning and permitting for housing.​​

That widening local and regional push has been bipartisan, as housing affordability defines both a common-ground issue and an electability strategy.​​ Democrat‑controlled California passed laws last year, as did Republican‑controlled Texas.​​

Under this pillar, Gallego proposes new “pro‑housing” certifications that reward jurisdictions that hit production targets with household rebates and access to a flexible grant fund.​​

Those certifications—the “sticks” that give strength to the “carrots”— would also expose chronic obstruction to potential funding consequences.​​

The package also urges targeted exemptions to the 1970 National Environmental Policy Act for small and urban infill projects.​​

Gallego calls for joint HUD–USDA environmental reviews and long‑overdue updates to the HOME and Community Development Block Grant programs.​​

California took a similar step last year with a sweeping reform to its 1970 environmental law, aiming to reinvigorate urban infill development.​​

Focusing on renter relief and first‑time buyers​​

Pillar three of Gallego’s blueprint focuses on immediate relief for renters and would‑be buyers.​​

It proposes zero or 1% down FHA loans for renters with strong payment histories.​​

Gallego also wants a special FHA product for teachers and first responders, and a refundable first‑time buyer tax credit up to $15,000.​​

The same pillar would expand vouchers and pay landlords bonuses in low‑poverty areas.​​

Additional measures would crack down on algorithmic rent‑setting and bulk single‑family acquisitions by institutional investors.​​

The plan also seeks to restore fair‑housing enforcement and Housing First programs rolled back by the Trump administration.​​

A crackdown on algorithmic rent‑setting mirrors what states have done after lawsuit settlements with data analytics firm RealPage and apartment companies accused of colluding to fix prices.​​

The fourth leg of the program aims to “future‑proof” homes against climate risk and an insurance crunch.​​

Gallego proposes more money for pre‑disaster mitigation, weatherization, home repairs, and water and flood infrastructure.​​

The climate‑resilience pillar also backs a permanent disaster recovery funding framework.​​

Under that approach, homeowners could tap tax deductions and discounts tied to mitigation.​​

Gallego further calls for fully funding federal climate data and mapping to help keep vulnerable communities insurable.​