The National Association of Home Builders says President Joe Biden’s proposed $1.9 trillion stimulus package includes necessary funds to help housing compared to the Republican proposed plan. In addition, the discussion between the White House and increasing lumber prices will continue under the Biden administration. NAHB leadership sent a letter to President Biden on January 29 outlining lumber’s effects on the housing sector and overall economy. Biden’s stimulus plan includes an additional $25 billion to support rental assistance whereas the GOP plan does not. Another $5 billion from Biden’s plan would help to cover utility costs and another $5 billion would assist those facing homelessness.
The Republican proposal offers no funding for state and local governments while Biden is pushing for $350 billion in funding plus $20 billion for public transit systems. States and cities facing serious budget shortfalls warn they’ll be forced to make deep cuts to public health, safety and education programs without more funding. Additional funding will enable state and local governments to avoid layoffs of police, teachers and firefighters and discourage local jurisdictions from increasing impact fees and other construction fees that harm housing affordability.
NAHB is urging Congress to work closely with the White House to quickly pass the relief package.