The Project Turnkey Act establishes a new federal program to convert vacant hotels and motels into affordable housing and shelter for people experiencing or at risk of homelessness, domestic violence, or human trafficking. The program authorizes $1 billion annually in federal grants to eligible entities—including state and local governments, public housing agencies, nonprofits, and community development organizations—to acquire, rehabilitate, and operate these converted properties, as well as provide supportive services and rental assistance. Funding allocations will go primarily to jurisdictions that already received federal housing grants in 2025, with an additional $25 million set aside for technical assistance and $50 million for federal administration. The funds remain available for use through 2035 and are exempted from many existing federal housing program requirements to expedite their deployment, though fair housing, nondiscrimination, labor standards, and environmental protections still apply.
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