The Spring Street Brief

The Build America Caucus, co-chaired by Rep. Josh Harder (D-CA) and Rep. Celeste Maloy (R-UT), released its Build More Agenda ahead of the 2026 midterm elections. A key provision for affordable housing stakeholders: a proposed exemption from Buy America Build America (BABA) requirements — a compliance layer that has added cost and procurement complexity to HUD-assisted and bond-financed multifamily development. Released alongside a separate House Democratic Housing Oversight & Policy Working Group report led by Reps.

Show Notes

The Build America Caucus, co-chaired by Rep. Josh Harder (D-CA) and Rep. Celeste Maloy (R-UT), released its Build More Agenda ahead of the 2026 midterm elections. A key provision for affordable housing stakeholders: a proposed exemption from Buy America Build America (BABA) requirements — a compliance layer that has added cost and procurement complexity to HUD-assisted and bond-financed multifamily development. Released alongside a separate House Democratic Housing Oversight & Policy Working Group report led by Reps. Emilia Sykes (D-OH) and Laura Friedman (D-CA), the dual releases signal that affordable housing is being elevated as a bipartisan midterm issue.

Key Takeaways:

  • The Build America Caucus's Build More Agenda includes a proposed BABA exemption specifically for affordable housing projects.
  • BABA requirements currently apply to federally funded projects and mandate the use of American-made materials — a compliance burden that complicates multifamily pro formas with multiple funding sources.
  • The caucus is bipartisan, co-chaired by one Democrat (Harder, CA) and one Republican (Maloy, UT), giving the agenda more legislative credibility than a single-party release.
  • A concurrent House Democratic Housing Oversight & Policy Working Group report, led by Reps. Sykes and Friedman, adds a second front of legislative activity on housing affordability heading into the midterms.
  • The agenda is timed to the 2026 midterm elections, positioning a BABA exemption as a potential target for a post-election legislative vehicle in the next Congress.
  • Developers with projects where BABA compliance is creating cost uncertainty should begin flagging this development in lender and investor conversations now.

A BABA exemption for affordable housing is not yet law, but the bipartisan framing and midterm timing create a credible path for inclusion in a broader housing or infrastructure package in the next Congress. For LIHTC developers, syndicators, and lenders managing deals with federal financing exposure, the political alignment on this issue is worth tracking closely. The window between election day and a new legislative session could move quickly.

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