Who Shapes Housing Policy? Congressional Committees and Leaders Explained

A blog empowering Hispanic homeownership through advocacy and policy.

By Elizabeth Nimmons
January 16, 2025

Housing policy in the United States is deeply influenced by Congress, even if it is not always the first entity that comes to mind. Congressional decisions shape housing supply, affordability, and access to affordable mortgage credit. Understanding how Congressional committees and their leaders influence housing policy is essential for anyone invested in the housing market.

Congressional Committees: The Powerhouses of Policy

Congressional committees are the engines that drive legislation forward. These specialized groups of lawmakers evaluate bills, hold hearings, and propose changes before any piece of legislation reaches the broader House or Senate for debate. In terms of housing, a number of committees play pivotal roles:

• Senate Banking, Housing, and Urban Affairs Committee: Often referred to as the “Senate Banking Committee” or, more simply, the “Banking Committee,” this group of legislators oversees a wide array of housing-related policies and programs and is one of the most influential bodies shaping national housing policy. The Committee is responsible for legislation affecting housing finance systems, including oversight of institutions like the Federal Housing Administration (FHA), Ginnie Mae, and the Federal Home Loan Banks. Its work directly impacts mortgage lending, affordable housing initiatives, and programs managed by the Department of Housing and Urban Development (HUD). You can learn more about the Banking Committee and its members here.
• House Financial Services Committee: In the House of Representatives, this committee handles issues related to housing policy, mortgage lending, and community development. Its responsibilities span a wide range of critical areas, including oversight of federal housing programs (e.g., the HOME Investment Partnerships Program and the Section 8 Choice Voucher Program), mortgage lending practices (e.g., changes to FHA loan requirements), and community development initiatives (e.g., the Community Development Block Grant (CDBG) program). It also plays a key role in consumer protection, addressing issues like fair lending practices and combating housing discrimination, and oversees Fannie Mae and Freddie Mac. By holding hearings and drafting legislation, the committee influences policies that affect millions of homeowners, renters, and industry professionals nationwide. You can learn more about the Financial Services Committee here.
• Appropriations Committees: Both the House and Senate Appropriations Committees control the spending for federal programs. They play a critical role in determining how federal dollars are allocated, including funding for housing-related initiatives. These committees review budget proposals and set annual spending levels for key programs managed by HUD, including public housing, rental assistance programs, and community development grants. In addition, appropriations decisions impact the funding available for rural housing programs and disaster relief housing efforts. Their work ensures that federal housing priorities align with broader economic and social goals, making their influence critical in addressing issues like housing affordability and access for underserved communities. You can learn more about the Appropriations Committees here (House) and here (Senate).

Leadership and Why It Matters

The leadership of these committees—the chairs, ranking members, and other influential figures—has a significant impact on housing policy. Committee chairs control the legislative agenda, meaning they decide which issues get attention and which bills move forward. Recent leadership changes highlight the importance of these roles:

A Rising Voice in the Senate
As the new Chair of the Senate Banking Committee, Senator Tim Scott (R-SC) brings his unique perspective and priorities to the role. Leadership changes often signal shifts in focus; for example, Senator Scott’s long-standing advocacy for Opportunity Zones—designed to spur investment in economically distressed communities—could influence the committee’s approach to leveraging private capital for housing development in underserved areas. Under his guidance, the Senate Banking Committee will likely prioritize housing supply issues. Of note, Sen. Scott introduced the ROAD to Housing Act in 2024, which may be reintroduced in the coming year. Sen. Elizabeth Warren (D-MA) will serve as the Committee’s Ranking Member (the senior member of the minority party on the Committee).

Influential Voices in the House
Representative French Hill (R-AR) was recently selected to be the next Chair of the House Financial Services Committee. Representative Hill’s background in banking and finance gives him a unique approach to housing and federal housing programs, including those administered by the FHA and oversight of the GSEs. His leadership could shift the Committee’s focus toward reducing government intervention in housing markets. Representative Maxine Waters (D-CA) was re-selected to serve as the Committee’s Ranking Member.

Why This Matters for Real Estate Professionals

For those in the housing industry, understanding the work of these committees is practical. Committee decisions influence the regulations navigated, the programs clients rely on, and the incentives that drive investment in housing. Here are a few examples of how this plays out:

• Mortgage Lending Standards: Adjustments to FHA or VA loan guidelines can expand or restrict access to mortgages, directly impacting buyers and lenders.
• Funding for Affordable Housing: Appropriations decisions determine the scale of resources for programs like Section 8 vouchers or grants for first-time homebuyers.
• Policy Shifts: New legislative priorities might spur investment in underserved areas or incentivize sustainable building practices.

Understanding where housing policy begins helps anticipate changes and positions stakeholders as informed advocates for clients and communities.

If you are interested in getting involved with NAHREP’s work on Capitol Hill, join us for our annual Hill Visits during the Homeownership and Housing Policy Conference! Hill Visits will take place on March 26, 2025 and allow NAHREP members to connect directly with their local chapter’s Congressional office. When registering for the Conference, be sure to note that you are interested in Hill Visits.