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Treasury Secretary Janet Yellen announces $100M affordable housing fund

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Treasury Secretary Janet Yellen announces 0M affordable housing fund


Not a single state in the country has enough affordable housing to meet the needs of low-income renters, U.S. Treasury Secretary Janet Yellen said in Minneapolis on Monday.

Yellen, meeting with politicians and business leaders Monday and Tuesday, announced a new $100 million fund to subsidize financing for affordable housing.

“Here in Minnesota, Black households are six times more likely than white households to be precariously housed,” said Yellen, the former chair of the Federal Reserve.

The new $100 million fund would boost the Federal Financing Bank’s financing of affordable housing and other measures over three years. Yellen also noted the Biden administration support of the construction of affordable rental housing through the Low-Income Housing Tax Credit.

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“This new program will be primarily focused on increasing the supply of affordable housing,” Yellen said. “We look forward to designing it over the coming months to make sure that we are putting these new funds to their most effective use.”

Nationally, there is a shortage of more than 7 million affordable homes for the more than 10.8 million extremely low-income U.S. families, according to the National Low Income Housing Coalition. And there is no state or county in the country where a renter working full-time at minimum wage can afford a two-bedroom apartment, according to the group.

The announcements came as attention to the housing crunch and shortage of affordable housing becomes a growing issue in this year’s presidential election campaign.

Diane Yentel, president and CEO of the National Low Income Housing Coalition, said the White House has made efforts to prevent evictions and address the housing crisis, “but there is much more work still to be done.”

Yellen delivered remarks Monday following a tour inside one of the city’s Family Housing Expansion Project, or FHEP, apartment units. The project, which was completed in 2023, is the largest new-unit housing project in 20 years developed by the Minnesota Public Housing Authority and consists of 84 units across 16 apartment buildings citywide.

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“Housing is the first thing people need in order to be healthy,” said Sen. Tina Smith, who joined Yellen along with fellow Democrat Minneapolis Mayor Jacob Frey.

Yellen emphasized the importance of efforts aimed at fueling the development of more affordable housing and credited Minneapolis with serving as an example of “strategically leveraging” federal policies and programs to build needed housing.

“To get more affordable housing, you have to allow for it,” Frey said. “Previously we had a system that was set up that, by and large, kept all of the affordable housing in just a couple of locations throughout Minneapolis.”

Frey pointed to the city’s push for the long-fought 2040 Plan, which included a provision to boost inclusionary zoning and allow for the construction of multifamily housing.

On Tuesday, Yellen is set to hold a roundtable with Sen. Amy Klobuchar and small business owners about Community Development Financial Institutions.

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The supply crunch of both affordable rentals and already owned homes for sale has raised prices.

“This supply crunch has led to an affordability crunch,” she said

Biden’s budget proposal calls on Congress to provide a tax credit for first-time homebuyers and includes a plan to build more than 2 million homes. It would expand the Low-Income Housing Tax Credit.

Includes reporting from the Associated Press.

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Minneapolis residents hold vigil for woman fatally shot by ICE agent – video

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Minneapolis residents hold vigil for woman fatally shot by ICE agent – video


Crowds gathered in Minneapolis on Wednesday to protest and hold a vigil for a woman killed during the Trump administration’s latest immigration crackdown.

The Minneapolis motorist was shot during an Immigration and Customs Enforcement operation in the city in what federal officials claimed was an act of self-defence by an officer, but which the city’s mayor described as ‘reckless’ and unnecessary



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Minneapolis mayor responds to Noem’s shooting comments

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Minneapolis mayor responds to Noem’s shooting comments


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St. Paul and Minneapolis mayoral inaugurations hint at challenges ahead – MinnPost

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St. Paul and Minneapolis mayoral inaugurations hint at challenges ahead – MinnPost


November’s surprising elections that lifted Kaohly Her to leadership in St. Paul and saw Jacob Frey’s return to Minneapolis culminated this week in inauguration ceremonies offering hints at how the leaders may approach their roles over the next four years.

But while Her’s ceremony felt almost like an introduction to a relative newcomer, Frey, voted in for a third term, hammered well-worn themes.

“First” was the word of the day at St. Paul’s St. Catherine University, hosting Her’s inauguration — not only the first female mayor of the city, but the first to be a woman of color, an Asian-American, an immigrant and of Hmong ancestry. 

The St. Kate’s location offered a symbolic touch as one of the only women’s colleges in the nation and an establishment with strong outreach to the Hmong community.

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A color guard walks to the stage during St. Paul mayor Kaohly Her’s inauguration in The O’Shaughnessy auditorium at St. Catherine’s University on Friday, Jan. 2, 2026, in St. Paul, Minn. Credit: Ellen Schmidt/MinnPost/CatchLight Local/Report for America

Following accolades from friends and fellow officials, Her laid down what she said were foundational aspects of her mayorship, like concerns over rising property taxes and deferred maintenance of city resources, like arenas.

“I will never come to you without numbers, data points or a plan,” Her said.

Compare that to Mayor Frey’s inauguration, held at the Pantages Theater in downtown Minneapolis as part of the swearing in of public officials including the Minneapolis City Council.

Frey needs no introduction to most of the city’s residents — certainly not to the protesters who interrupted the beginning of his speech by yelling the names of domestic violence victims and holding up flags emblazoned with “FTP,” a phrase often used to disparage law enforcement.

a swearing-in ceremony of a man in a suit as his wife and daughters look on
Minneapolis Mayor Jacob Frey is sworn in for a third term by City Clerk Casey Carl on Jan. 5, 2026, as his wife Sarah and daughters Frida and Estelle look on at the Pantages Theater in downtown Minneapolis. Credit: Trevor Mitchell

The mayor drew on previous terms, saying his administration would continue leaning into their work to support more affordable housing throughout the city, build more diverse public safety departments and revitalize areas like the former Kmart site along Lake Street.

Frey’s speech neatly compared what he said were national crises, like ICE raids, to Minneapolis’ harsh winters, saying the best way to weather both was together. And in a nod that seemed aimed at the City Council’s recent dysfunction, he repeated some councilors’ calls “not for chaos or blame, but for partnership.”

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Her commented on recent federal attention as well, saying the Trump administration was “determined to make life more difficult.” She shared a goal of removing federal officers’ ability to stage in public parks and wear masks.

“I am determined not to allow this federal administration to turn us against each other,” Her said.

Both mayors bemoaned the current state of politics, with Frey alluding to the “frayed and even dangerous discourse” faced not only by candidates but by campaign teams and families. Her became emotional speaking about her friendship with late House speaker Melissa Hortman, assassinated in June.

Asked by MinnPost about their colleagues across the river, Her said, “the bond between St. Paul and Minneapolis is one of the most unique and special connections in the whole country. It’s what makes our region so great.” Her mentioned her hope to share meals and advice with Frey, “like we did last month.”

Frey called the Twin Cities’ partnership “the strongest force in Minnesota.” In Her, he said he has “a partner who believes that cities should be relentlessly focused on delivering for our residents and improving lives. I can’t wait to work with her to lift up both of our cities.”

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Both mayors clearly shared at least one goal: an interest in their audience leaving the inaugurations energized.

In Minneapolis, Frey and others onstage broke out dance moves to Kennadi Watkins’ rendition of Aretha Franklin’s “Rock Steady.”

In St. Paul, as people made their way to the doors, “Golden,” from the hit film “KPop Demon Hunters” — a song about claiming the many contrasting identities within one person — blasted over the speakers.



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