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.