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
Video: Fed Chair Responds to Inquiry on Building Renovations
new video loaded: Fed Chair Responds to Inquiry on Building Renovations
transcript
transcript
Fed Chair Responds to Inquiry on Building Renovations
Federal prosecutors opened an investigation into whether Jerome H. Powell, the Federal Reserve chair, lied to Congress about the scope of renovations of the central bank’s buildings. He called the probe “unprecedented” in a rare video message.
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“Good evening. This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead, monetary policy will be directed by political pressure or intimidation.” “Well, thank you very much. We’re looking at the construction. Thank you.”
By Nailah Morgan
January 12, 2026
Politics
San Antonio ends its abortion travel fund after new state law, legal action
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San Antonio has shut down its out-of-state abortion travel fund after a new Texas law that prohibits the use of public funds to cover abortions and a lawsuit from the state challenging the city’s fund.
City Council members last year approved $100,000 for its Reproductive Justice Fund to support abortion-related travel, prompting Texas Attorney General Ken Paxton to sue over allegations that the city was “transparently attempting to undermine and subvert Texas law and public policy.”
Paxton claimed victory in the lawsuit on Friday after the case was dismissed without a finding for either side.
WYOMING SUPREME COURT RULES LAWS RESTRICTING ABORTION VIOLATE STATE CONSTITUTION
Texas Attorney General Ken Paxton claimed victory in the lawsuit after the case was dismissed without a finding for either side. (Hannah Beier/Bloomberg via Getty Images)
“Texas respects the sanctity of unborn life, and I will always do everything in my power to prevent radicals from manipulating the system to murder innocent babies,” Paxton said in a statement. “It is illegal for cities to fund abortion tourism with taxpayer funds. San Antonio’s unlawful attempt to cover the travel and other expenses for out-of-state abortions has now officially been defeated.”
But San Antonio’s city attorney argued that the city did nothing wrong and pushed back on Paxton’s claim that the state won the lawsuit.
“This litigation was both initiated and abandoned by the State of Texas,” the San Antonio city attorney’s office said in a statement to The Texas Tribune. “In other words, the City did not drop any claims; the State of Texas, through the Texas Office of the Attorney General, dropped its claims.”
Texas Attorney General Ken Paxton said he will continue opposing the use of public funds for abortion-related travel. (Justin Lane/Reuters)
Paxton’s lawsuit argued that the travel fund violates the gift clause of the Texas Constitution. The state’s 15th Court of Appeals sided with Paxton and granted a temporary injunction in June to block the city from disbursing the fund while the case moved forward.
Gov. Greg Abbott in August signed into law Senate Bill 33, which bans the use of public money to fund “logistical support” for abortion. The law also allows Texas residents to file a civil suit if they believe a city violated the law.
“The City believed the law, prior to the passage of SB 33, allowed the uses of the fund for out-of-state abortion travel that were discussed publicly,” the city attorney’s office said in its statement. “After SB 33 became law and no longer allowed those uses, the City did not proceed with the procurement of those specific uses—consistent with its intent all along that it would follow the law.”
TRUMP URGES GOP TO BE ‘FLEXIBLE’ ON HYDE AMENDMENT, IGNITING BACKLASH FROM PRO-LIFE ALLIES
Texas Gov. Greg Abbott signed a law in August that blocks cities from using public money to help cover travel or other costs related to abortion. (Antranik Tavitian/Reuters)
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The broader Reproductive Justice Fund remains, but it is restricted to non-abortion services such as home pregnancy tests, emergency contraception and STI testing.
The city of Austin also shut down its abortion travel fund after the law was signed. Austin had allocated $400,000 to its Reproductive Healthcare Logistics Fund in 2024 to help women traveling to other states for an abortion with funding for travel, food and lodging.
Politics
California Atty. Gen. Rob Bonta opts against running for governor. Again.
California Atty. Gen. Rob Bonta announced Sunday that he would not run for California governor, a decision grounded in his belief that his legal efforts combating the Trump administration as the state’s top prosecutor are paramount at this moment in history.
“Watching this dystopian horror come to life has reaffirmed something I feel in every fiber of my being: in this moment, my place is here — shielding Californians from the most brazen attacks on our rights and our families,” Bonta said in a statement. “My vision for the California Department of Justice is that we remain the nation’s largest and most powerful check on power.”
Bonta said that President Trump’s blocking of welfare funds to California and the fatal shooting of a Minnesota mother of three last week by a federal immigration agent cemented his decision to seek reelection to his current post, according to Politico, which first reported that Bonta would not run for governor.
Bonta, 53, a former state lawmaker and a close political ally to Gov. Gavin Newsom, has served as the state’s top law enforcement official since Newsom appointed him to the position in 2021. In the last year, his office has sued the Trump administration more than 50 times — a track record that would probably have served him well had he decided to run in a state where Trump has lost three times and has sky-high disapproval ratings.
Bonta in 2024 said that he was considering running. Then in February he announced he had ruled it out and was focused instead on doing the job of attorney general, which he considers especially important under the Trump administration. Then, both former Vice President Kamala Harris and Sen. Alex Padilla (D-Calif.) announced they would not run for governor, and Bonta began reconsidering, he said.
“I had two horses in the governor’s race already,” Bonta told The Times in November. “They decided not to get involved in the end. … The race is fundamentally different today, right?”
The race for California governor remains wide open. Newsom is serving the final year of his second term and is barred from running again because of term limits. Newsom has said he is considering a run for president in 2028.
Former Rep. Katie Porter — an early leader in polls — late last year faltered after videos emerged of her screaming at an aide and berating a reporter. The videos contributed to her dropping behind Riverside County Sheriff Chad Bianco, a Republican, in a November poll released by the UC Berkeley Institute of Governmental Studies and co-sponsored by The Times.
Porter rebounded a bit toward the end of the year, a poll by the Public Policy Institute of California showed, however none of the candidates has secured a majority of support and many voters remain undecided.
California hasn’t elected a Republican governor since 2006, Democrats heavily outnumber Republicans in the state, and many are seething with anger over Trump and looking for Democratic candidates willing to fight back against the current administration.
Bonta has faced questions in recent months about spending about $468,000 in campaign funds on legal advice last year as he spoke to federal investigators about alleged corruption involving former Oakland Mayor Sheng Thao, who was charged in an alleged bribery scheme involving local businessmen David Trung Duong and Andy Hung Duong. All three have pleaded not guilty.
According to his political consultant Dan Newman, Bonta — who had received campaign donations from the Duong family — was approached by investigators because he was initially viewed as a “possible victim” in the alleged scheme, though that was later ruled out. Bonta has since returned $155,000 in campaign contributions from the Duong family, according to news reports.
Bonta is the son of civil rights activists Warren Bonta, a white native Californian, and Cynthia Bonta, a native of the Philippines who immigrated to the U.S. on a scholarship in 1965. Bonta, a U.S. citizen, was born in Quezon City, Philippines, in 1972, when his parents were working there as missionaries, and immigrated with his family to California as an infant.
In 2012, Bonta was elected to represent Oakland, Alameda and San Leandro as the first Filipino American to serve in California’s Legislature. In Sacramento, he pursued a string of criminal justice reforms and developed a record as one of the body’s most liberal members.
Bonta is married to Assemblywoman Mia Bonta (D-Alameda), who succeeded him in the state Assembly, and the couple have three children.
Times staff writer Dakota Smith contributed to this report.
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