Treasury Secretary Scott Bessent indicated that President Donald Trump could declare a national housing emergency this autumn.
Such a declaration would position housing affordability as a significant topic leading up to the 2026 midterm elections, a matter seemingly central to the Trump Administration’s focus as events unfold. This would mark the first national emergency concerning housing since the U.S. entered the 2008 financial crisis following the housing bubble’s collapse.
“We might declare a national housing emergency this fall,” Bessent stated to the on Monday.
“We are exploring potential actions, while aiming not to intrude on the responsibilities of state, county, and municipal governments,” Bessent remarked. “I believe all options are being considered.”
Here is what you should understand.
What does a declaration of national emergency entail?
The 1976 National Emergencies Act grants the President the authority to declare a national emergency at their discretion. While the act does not explicitly define what constitutes an “emergency,” it mandates that the President issue a formal declaration, often via an executive order, and specify the statutory powers intended for use within that declaration.
A national emergency declaration enables the President to circumvent Congress for various statutorily defined actions, in addition to 13 other statutory powers if Congress itself declares an emergency. Throughout his second term, Trump has thus far , predominantly addressing immigration and trade, along with a 10th in . Trump has deployed his emergency powers to on much of the world, and also to grant the military supervision over immigration enforcement.
Congress possesses the ability to end a national emergency by enacting legislation; however, the President can veto such a resolution unless a supermajority is achieved. Absent this, a national emergency can theoretically persist indefinitely, provided it undergoes annual reaffirmation.
Nevertheless, national emergencies and the actions taken during them are subject to legal challenges. Last week, a federal appeals court that the majority of Trump’s tariffs are unlawful, though Trump is expected to contest this ruling before its effective date of Oct. 14. Additionally, in May, 15 Democratic state attorneys general also to prevent Trump’s national energy emergency, asserting the absence of an emergency and claiming his Jan. 20 executive order is unlawfully bypassing reviews of fossil fuel projects. That lawsuit remains active.
Trump has faced for his extensive reliance on national emergency declarations, viewed as executive overreach. Furthermore, some experts have voiced criticism regarding the broader legal framework of emergency declarations in the U.S., with Elizabeth Goitein of the progressive Brennan Center for Justice think tank them “easy to declare and hard to stop.”
Is the U.S. currently experiencing a housing crisis?
The U.S. housing crisis has evolved over the past two decades, fueled by a and exacerbated by the 2008 financial crisis, following . Certain estimates indicate that the U.S. is , whereas in Greater New York and Los Angeles.
The crisis intensified subsequent to the COVID-19 pandemic, which and led to a rise in interest rates aimed at curbing inflation. The pandemic additionally through labor shortages and disruptions in the supply chain. The typical monthly payment for a median-priced home throughout the U.S. . Moreover, some experts that climate change is intensifying the crisis, given that many homes lack adequate insurance for natural disasters, which are . Other viewpoints suggest that the increase in institutional investors acquiring homes for rental purposes has also .
“Currently, nationwide, prices are five times income in areas such as Boston… and in California’s high-cost markets, they are 10 times income,” Chris Herbert, managing director of Harvard University’s Joint Center for Housing Studies, Harvard Magazine last October.
“How can we reduce housing costs?” he further questioned. “Because we must consider that the private sector ought to be capable of supplying housing affordable to individuals with reasonable employment.”
What potential actions might Trump undertake?
Bessent refrained from specifying whether Trump was evaluating any particular measures to tackle housing affordability. He stated that administration officials are examining methods to standardize local building and zoning regulations and reduce closing costs, noting that Trump might also contemplate tariff waivers for certain construction materials.
During his 2024 presidential campaign, Trump indicated he would tackle the housing crisis by for housing development and by significantly reducing regulations. He has further contended that the Federal Reserve’s elevated interest rates have adversely affected the housing market, as he has the to reduce rates.