Politics
Solutions: Here's how the Trump administration can curb housing costs
One reason American voters handed the country’s reins back to President Trump was the extreme inflation in housing prices that took place under his predecessor. The federal government has less influence over this issue than, say, California mayors and legislators — but whoever is in the White House can take certain steps to push prices down. The federal government can lower construction material costs, release more land for homebuilding and ensure that federal grants are used efficiently.
Unlike American manufacturing, residential construction has missed out on productivity improvements for decades. One reason is that building code updates, which are written by an industry group, increase costs more often than they decrease them. As a result, cost-conscious states usually stick with older, cheaper building codes. But that means they miss out on productive innovations. The Trump administration could start by creating a building code innovation module, consisting only of cost-decreasing updates, which states and cities could then adopt.
U.S. building codes have fallen behind peer countries in construction techniques for mid-rise buildings, which provide important, dense housing supply using little land. The administration could help California, Tennessee and several other states already in the process of identifying safety standards for the construction of four- to six-story buildings with a single staircase. A related innovation would adopt lower-cost elevator standards for small buildings, which would enable cost-effective accessibility in more new construction.
As the new administration sets tariff rates, it should balance construction costs among its priorities. The Biden administration doubled Trump’s original tariff on Canadian lumber, adding thousands to the cost of each new house. Cutting that tariff to its 2020 rate — or better yet, eliminating it and aiming tariffs at strategic opponents instead of America’s strongest ally — would bring immediate relief to builders and buyers. Instead, in his first few weeks back in office, Trump has scheduled higher tariffs on Canadian goods, including lumber, and added a 25% global steel tariff, which will make it much more expensive to build the next Trump Tower.
In addition to material costs, another factor that has driven up home prices and limited inventory is a chronic scarcity of construction workers, and the federal government has more control over this labor supply than states and cities do. Through immigration policy, the Trump administration could either aggravate the shortage or ease it, which would either raise or lower housing costs.
In land use, as in construction productivity, the federal government plays a quietly influential role. Trump has proposed building new “freedom cities” on federally owned land across the country. That’s one of several ways that huge federal landholdings could be opened for housing and jobs relatively free of local politics and NIMBYism.
Another idea is to expand nationwide the successful Southern Nevada Public Land Management Act, which allows the sale of federal land to support suburban growth. So far it has been limited to the Las Vegas area, where it has been successful and has generated funding to conserve and improve other valuable public land.
Other regulations and agencies influence the use of privately owned land. For instance, federal rules on storm water drainage are not only strict, but also complex and scattered. A first step would be to unify those rules in a single place. Once unified, they can be analyzed and streamlined as appropriate.
Some agencies, such as the Federal Aviation Administration and the Department of Defense, quietly influence local land use. An administration-wide directive could nudge them to affirm more homebuilding where appropriate rather than reflexively blocking it.
Yet the federal government’s most immediate connection to cities is through grant-making for a range of purposes. Many federal regulations require grantees to undergo expensive planning exercises to qualify for funding. Experience shows that the plans usually have no influence on subsequent actions. The new administration must ensure that money is used well by emphasizing outcome-based reporting for federal grantees instead.
Some grants are openly ill-spent. Several states waste federal funding for removing lead paint hazards by preventing out-of-state workers from contributing to that work. And some of the richest cities skirt the rules of the Community Development Block Grant program, using funds in ways that make housing more expensive, not more attainable. Federal agencies can easily curtail these inefficiencies.
Even better, the Department of Housing and Urban Development should find funding to offer technical assistance to small cities and towns that want to allow more housing. When I advised Auburn, Maine, on its nation-leading reforms, the limiting factor was local staff time. For municipalities that share Auburn’s goals, HUD can be a valuable resource.
Regulators at the Federal Housing Finance Agency have an outsize role in determining who gets a mortgage and why. The agency should seriously investigate the possibility that its own well-intended regulations have cut off mortgage lending to working-class families. My colleague Kevin Erdmann argues that unreasonably strict credit standards have eliminated most buyers for lower-cost homes and created a new constituency for single-family rentals. They would rather buy, if anyone would give them a mortgage.
Despite these many touchpoints, Americans should remember that the fault is not in our presidents, but in ourselves, that we are underbuilding. In California, for example, obstacles to construction include strict local zoning, NIMBY resistance and laws that require builders to pay above-market wages and force landlords to collect below-market rents. Such factors have aggravated a housing shortage and contributed to outmigration, homelessness and even more deferred dreams. Federal innovation and efficiency can support local efforts but cannot replace them.
Salim Furth is a senior research fellow and director of the urbanity project at the Mercatus Center at George Mason University.
Politics
California Congressman Doug LaMalfa dies, further narrowing GOP margin in Congress
California Rep. Doug LaMalfa (R-Richvale) has died, GOP leadership and President Trump confirmed Tuesday morning.
“Jacquie and I are devastated about the sudden loss of our friend, Congressman Doug LaMalfa. Doug was a loving father and husband, and staunch advocate for his constituents and rural America,” said Rep. Tom Emmer (R-Minn.), the House majority whip, in a post on X. “Our prayers are with Doug’s wife, Jill, and their children.”
LaMalfa, 65, was a fourth-generation rice farmer from Oroville and staunch Trump supporter who had represented his Northern California district for the past 12 years. His seat was one of several that was in jeopardy under the state’s redrawn districts approved by voters with Proposition 50.
Emergency personnel responded to a 911 call from LaMalfa’s residence at 6:50 p.m. Monday, according to the Butte County Sheriff’s Office. The congressman was taken to the Enloe Medical Center in Chico, where he died while undergoing emergency surgery, authorities said.
An autopsy to determine the cause of death is planned, according to the sheriff’s office.
LaMalfa’s district — which stretches from the northern outskirts of Sacramento, through Redding at the northern end of the Central Valley and Alturas in the state’s northeast corner — is largely rural, and constituents have long said they felt underrepresented in liberal California.
LaMalfa put much of his focus on boosting federal water supplies to farmers, and seeking to reduce environmental restrictions on logging and extraction of other natural resources.
One LaMalfa’s final acts in the U.S. House was to successfully push for the reauthorization of the Secure Rural Schools Act, a long-standing financial aid program for schools surrounded by untaxed federal forest land, whose budgets could not depend upon property taxes, as most public schools do. Despite broad bipartisan support, Congress let it lapse in 2023.
In an interview with The Times as he was walking onto the House floor in mid-December, LaMalfa said he was frustrated with Congress’s inability to pass even a popular bill like that reauthorization.
The Secure Rural Schools Act, he said, was a victim of a Congress in which “it’s still an eternal fight over anything fiscal.” It is “annoying,” LaMalfa said, “how hard it is to get basic things done around here.”
In a statement posted on X, California Democratic Sen. Adam Schiff said he considered LaMalfa “a friend and partner” and that the congressman was “deeply committed to his community and constituents, working to make life better for those he represented.”
“Doug’s life was one of great service and he will be deeply missed,” Schiff wrote.
Democratic Gov. Gavin Newsom in a statement called LaMalfa a “devoted public servant who deeply loved his country, his state, and the communities he represented.”
“While we often approached issues from different perspectives, he fought every day for the people of California with conviction and care,” Newsom said.
Flags at the California State Capitol in Sacramento will be flown at half-staff in honor of the congressman, according to the governor.
Before his death, LaMalfa was facing a difficult reelection bid to hold his seat. After voters approved Proposition 50 in November — aimed at giving California Democrats more seats in Congress — LaMalfa was drawn into a new district that heavily favored his likely opponent, State Sen. Mike McGuire, a Democrat who represents the state’s northwest coast.
LaMalfa’s death puts the Republican majority in Congress in further jeopardy, with a margin of just two votes to secure passage of any bill along party lines after the resignation of Georgia Rep. Marjorie Taylor Greene on Monday evening.
Adding to the party’s troubles, Rep. Jim Baird, a Republican from Indiana, was hospitalized on Tuesday for a car crash described by the White House as serious. While Baird is said to be stable, the Republican House speaker, Mike Johnson from Louisiana, will not be able to rely on his attendance. And he has one additional caucus member – Thomas Massie of Kentucky – who has made a habit of voting against the president, bringing their margin for error down effectively to zero.
President Trump, addressing a gathering of GOP House members at the Kennedy Center, addressed the news at the start of his remarks, expressing “tremendous sorrow at the loss of a great member” and stating his speech would be made in LaMalfa’s honor.
“He was the leader of the Western caucus – a fierce champion on California water issues. He was great on water. ‘Release the water!’ he’d scream out. And a true defender of American children.”
“You know, he voted with me 100% of the time,” Trump added.
A native of Oroville, LaMalfa attended Butte College and then earned an ag-business degree from Cal Poly San Luis Obispo. He served in the California Assembly from 2002 to 2008 and the California State Senate from 2010 to 2012. Staunchly conservative, he was an early supporter of Proposition 209, which ended affirmative action in California, and he also pushed for passage of the Protection of Marriage Act, Proposition 22, which banned same-sex marriage in California.
While representing California’s 1st District, LaMalfa focused largely on issues affecting rural California and other western states. In 2025, Congressman he was elected as Chairman of the Congressional Western Caucus, which focuses on legislation affected rural areas.
Politics
Federal officials to halt more than $10B in funding to 5 states over non-citizen benefit concerns: report
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The Trump administration is moving to freeze more than $10 billion in federal child care and social services funding to five Democrat-led states amid concerns taxpayer dollars were improperly diverted to non-citizens, according to a report.
Officials reportedly told The New York Post that the Department of Health and Human Services (HHS) will freeze funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant, affecting California, Colorado, Illinois, Minnesota, and New York over concerns the benefits were fraudulently funneled to non-citizens.
More than $7.3 billion in TANF funding would be withheld from the five states, along with nearly $2.4 billion from the CCDF and another $869 million from the Social Services Block Grant.
The funding pauses were expected to be announced in letters sent to state officials Monday, citing concerns that benefits were improperly directed to non-U.S. citizens.
ABBOTT ORDERS COMPREHENSIVE FRAUD PROBE INTO TEXAS CHILD CARE FUNDING AFTER MINNESOTA SCANDAL
The Department of Health and Human Services (HHS) will freeze funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant, affecting California, Colorado, Illinois, Minnesota, and New York over concerns the benefits were fraudulently funneled to non-citizens, according to a report. (Kayla Bartkowski/Getty Images)
A 2019 audit by the Department of Health and Human Services Office of Inspector General found that New York State improperly claimed $24.7 million in federal reimbursement for child care subsidies paid to New York City that did not comply with program rules.
The audit attributed the overbilling to system errors and oversight failures – not criminal fraud – and state officials agreed to refund the funds and implement corrective controls, according to the report.
Following the release of details surrounding the potential funding freeze, New York Democrats sharply criticized the Trump administration’s move, arguing it would harm families who rely on child care assistance.
MINN. LAWMAKER ‘NOT SURPRISED’ BY WALZ ENDING CAMPAIGN, SAYS THERE WILL BE NO ‘STONE UNTURNED’ IN HEARINGS
Sen. Kirsten Gillibrand, D-N.Y., accused the administration of using the issue for political retaliation and warned it would hurt children and low-income families across the state.
“Trump is threatening to freeze child care funding in New York and targeting our children for political retribution. It’s immoral and indefensible,” she wrote in a post on X. “I’m demanding the administration abandon any plans to freeze this funding and stop hurting New York families.”
Along with her post, Gillibrand also shared a public statement regarding the freezing of funds.
HHS CUTS OFF MINNESOTA CHILD CARE PAYMENTS OVER ALLEGED DAYCARE FRAUD SCHEME
Sen. Kirsten Gillibrand, D-N.Y., spoke out after the Trump administration moved on Jan. 5, 2026, to freeze billions in federal child care and social services funding to several blue states. (Getty Images)
“My faith guides my life and public service. It’s our job to serve the people most in need and most at risk – no matter what state they live in or what political party their family or elected representatives belong to,” she said. “To use the power of the government to harm the neediest Americans is immoral and indefensible.
“This has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance,” Gillibrand added. “I demand that President Trump unfreeze this funding and stop this brazen attack on our children.”
The NY Post first reported that in December, HHS sent letters to Walz and Minneapolis Mayor Jacob Frey seeking information on whether billions in taxpayer funds may have unlawfully helped “fuel illegal and mass migration.”
Those requests were followed by investigations launched by the Treasury Department and the House Oversight Committee into a growing fraud scandal involving several nonprofits tied to the Somali community in the Twin Cities.
An estimated 130,000 illegal migrants were living in Minnesota as of 2023 — about 40,000 more than in 2019 and roughly 2% of the state’s population — according to the Pew Research Center. The state’s Somali diaspora exceeds 100,000 people, with most concentrated in the Minneapolis–St. Paul area.
The news on Monday came the same day Minnesota Gov. Tim Walz announced he was dropping his bid for a third term as governor amid stinging criticism of his handling of the state’s massive welfare assistance fraud scandal.
KAROLINE LEAVITT WARNS ‘PEOPLE WILL BE IN HANDCUFFS’ AS FEDS ZERO IN ON MINNESOTA FRAUD SCANDAL
GOP lawmakers in Minnesota are calling for Gov. Tim Walz to resign over the exploding fraud crisis. (Getty Images)
Walz launched his bid for a third four-year term as Minnesota governor in September, but in recent weeks has been facing a barrage of incoming political fire from President Donald Trump and Republicans, and some Democrats, over the large-scale theft in a state that has long prided itself on good governance.
More than 90 people — most from Minnesota’s large Somali community — have been charged since 2022 in what has been described as the nation’s largest COVID-era scheme.
How much money has been stolen through alleged money laundering operations involving fraudulent meal and housing programs, daycare centers and Medicaid services is still being tabulated. But the U.S. attorney in Minnesota said the scope of the fraud could exceed $1 billion and rise to as high as $9 billion.
MINNESOTA FRAUD SCANDAL INTENSIFIES DEBATE OVER STRIPPING CITIZENSHIP
Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste / Fox News Channel)
Prosecutors said that some of the dozens that have already pleaded guilty in the case used the money to buy luxury cars, real estate, jewelry and international vacations, with some of the funds also sent overseas and potentially into the hands of Islamic terrorists.
Trump addressed Walz’s announcement of leaving the race on Monday, in a post on Truth Social. “Minnesota’s Corrupt Governor will possibly leave office before his Term is up but, in any event, will not be running again because he was caught, REDHANDED, along with Ilhan Omar, and others of his Somali friends, stealing Tens of Billions of Taxpayer Dollars,” the president wrote. “I feel certain the facts will come out, and they will reveal a seriously unscrupulous, and rich, group of ‘SLIMEBALLS.’
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“Governor Walz has destroyed the State of Minnesota, but others, like Governor Gavin Newscum, JB Pritzker, and Kathy Hochul, have done, in my opinion, an even more dishonest and incompetent job,” Trump added. “NO ONE IS ABOVE THE LAW!”
Fox News Digital’s Paul Steinhauser and Andrew Mark Miller contributed to this report.
Politics
The Tony Dokoupil era begins at ‘CBS Evening News’
Tony Dokoupil took his place at the anchor desk of the “CBS Evening News” on Monday as the troubled news division undergoes reinvention under its new editor in chief, Bari Weiss.
Dokoupil was supposed to start his run with a trip to 10 cities across the U.S., to connect with viewers outside of the media centers of New York and Washington. CBS News leased a private 14-seat jet for the tour, but the plan was delayed once the U.S. military action in Venezuela became a major story early Saturday morning.
Instead, Dokoupil took the chair Saturday night and broadcast live from San Francisco before returning to New York for his official premiere on Monday. The tour is still on and will commence Tuesday from Miami.
Dokoupil’s new role will be the first major test for Weiss, who came to the division with no previous experience in television or with running a massive journalism operation. Choosing on-air talent who help drive ratings for the network is considered the most critical task for a TV news executive.
Dokoupil, 45, follows the duo of John Dickerson and Maurice DuBois, who co-anchored “CBS Evening News” for a year. The program tried to bring more in-depth pieces to the typically fast-paced network evening news format. But it lost viewers and put CBS further behind “ABC World News Tonight With David Muir” and “NBC Nightly News With Tom Llamas.”
Dokoupil’s first official broadcast returned to a style that resembled previous iterations of “CBS Evening News,” with a tight shot of the anchor sitting at a desk in a newsroom.
Over the past year, Dickerson and DuBois were seated at a long desk and often interacted with correspondents shown on a large screen. The program no longer includes an in-studio meteorologist to present national weather.
Dokoupil’s arrival marks the fifth anchor change at the “CBS Evening News” since 2017. NBC has made one change since then, while Muir has been in his role at ABC since 2014.
CBS News promoted Dokoupil’s launch with a whimsical social media video that showed the journalist presenting a piece of paper with his name written on it to commuters at Grand Central Terminal in New York. Asked to pronounce “Dokoupil,” few of the commuters came close even though he had been co-host of “CBS Mornings” for several years.
The promo seemed like an odd choice given how the network evening news anchor has traditionally been a position requiring gravitas and comforting familiarity for its habit-driven audience.
Dokoupil also issued a video message last Thursday suggesting organizations such as CBS News are no longer reliable sources of information for much of the public.
“A lot has changed since the first person sat in this chair,” he said. “But for me, the biggest difference is people do not trust us like they used to. And it’s not just us. It’s all of legacy media.”
“The point is, on too many stories the press has missed the story,” he added. “Because we’ve taken into account the perspective of advocates and not the average American. Or we put too much weight in the analysis of academics or elites and not enough on you.”
The anchor went further on his Instagram account, where he cited Walter Cronkite, who sat at the desk during the division’s glory years of the 1960s and ‘70s. “I can promise we’ll be more accountable and more transparent than Cronkite or anyone else of his era,” he said.
Dokoupil’s claim prompted a response from Michael Socolow, a journalism professor at the University of Maine and the son of Sandy Socolow, who produced Cronkite’s broadcast.
Socolow noted how Cronkite believed the public should be skeptical of what it saw on TV news and take in other sources and points of view.
In an interview with The Times, Socolow said Cronkite was never comfortable with his designation as “the most trusted man in America.” CBS News touted that point, which was based on a single public opinion poll.
“Cronkite thought it wouldn’t be in the public interest to be too trustful of any specific media source,” Socolow said. “And he made that clear in public speeches and TV interviews for decades.”
Socolow posted a clip of a 1972 interview with Cronkite as an example.
“I don’t think they ought to believe me, or they ought to believe Brinkley, or they ought to believe anybody who’s on the air, or they ought to get all their news from one television station,” Cronkite said.
The latest change at “CBS Evening News” also follows one of the most tumultuous periods in the long history of CBS News. The organization was shaken by the Dec. 20 decision by Weiss to pull a “60 Minutes” piece on the harsh El Salvador mega-prison the U.S. government is using to hold undocumented migrants.
Weiss believed the story needed more reporting, including an on-camera response from Trump White House officials. The White House, Department of Homeland Security and the State Department had all declined comment to “60 Minutes.”
But the decision to yank the announced segment the day before it was scheduled to air led “60 Minutes” correspondent Sharyn Alfonsi to claim in an email to colleagues that the decision was political. Alfonsi had worked on the story for months and had it vetted by the division’s standards and practices department.
“Government silence is a statement, not a VETO,” Alfonsi wrote in the email. “If the administration’s refusal to participate becomes a valid reason to spike a story, we have effectively handed them a ‘kill switch’’ for any reporting they find inconvenient.”
Alfonsi’s reporting did show up on Canada’s Global TV service, which had been given a feed of the program before the change was made, an embarrassing operational error by CBS News. The segment was shared widely on social media.
Every move by Weiss has received heightened scrutiny since she was given editorial control over CBS News in October. She joined the network after parent company Paramount acquired the Free Press, a digital news and opinion platform she co-founded. The site made its name by calling out perceived liberal bias by legacy media organizations and so-called woke policies.
Media industry critics have used the “60 Minutes” controversy to suggest Weiss was installed to placate President Trump as Paramount pursues the acquisition of Warner Bros. Discovery, which would require government regulatory approval. A person close to Weiss who was not authorized to comment publicly said Paramount had no say on the Alfonsi piece.
Paramount already paid $16 million to Trump to settle a defamation suit against “60 Minutes.” Trump claimed the program deceptively edited an interview with Kamala Harris, calling it election interference. CBS News did not admit any wrongdoing in the settlement.
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