To prohibit Community Development Block Grant funding and Federal mortgage support in municipalities that allow squatting.
About This Bill
Committee
Latest Action · June 25, 2026
Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
This bill would penalize municipalities that allow squatting by withholding federal funding and mortgage support from those communities. Specifically, it prohibits Community Development Block Grant funding to any local government that permits squatting or grants special tenant rights to people illegally occupying properties, and it bars federal mortgage insurance and guarantees for homes in those same jurisdictions. The bill defines squatting as occupying a property without the owner's permission for at least 10 consecutive days without paying rent, though the mortgage support provision uses a 14-day threshold. The Department of Housing and Urban Development, Federal Housing Finance Agency, Department of Veterans Affairs, and Department of Agriculture would have 90 days to develop joint regulations to implement these restrictions. Municipalities could regain eligibility by taking corrective actions to prevent squatting, and the federal government would publish an annual list of jurisdictions prohibited from receiving these funds.
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