This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news related to residential and commercial construction as well as infrastructure and government initiatives and programs concerning housing and housing affordability. Once a week, we break down the most important updates in this space in under five minutes.

Dates: 2026-03-15 to 2026-03-21

📋 In This Week's Newsletter

• 🏛️ This Week's Congressional Calendar
• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 📚 What We're Reading This Week

This Week's Congressional Calendar

• House Appropriations Subcommittee on Departments of Transportation, and HUD Member Day: The House Appropriations Subcommittee on Transportation and Housing and Urban Development will hold a Member Day hearing in Rayburn House Office Building, room 2358-A, on March 25, 2026 at 2:00 p.m., focusing on input from House members regarding budget priorities.

Federal Government News

Executive Order: Removing Regulatory Barriers to Affordable Home Construction

President Biden issued Executive Order 14394 on March 13, 2026, directing federal agencies—including Army, EPA, Commerce, HUD, Transportation, and FHFA—to revise requirements related to stormwater, wetlands, and permitting to lower housing construction and ownership costs. Agencies are instructed to review standards for stormwater discharge, municipal permits, and Clean Water Act section 404 permits, with goals of streamlining processes and reducing regulatory burdens. Departments are asked to examine program guidelines affecting residential development density and manufactured housing, and consider changes to energy efficiency, water-use standards, and related regulations. The Council on Environmental Quality is to issue guidance expanding categorical exclusions under the National Environmental Policy Act for housing construction and infrastructure, while the Advisory Council on Historic Preservation will evaluate exemptions under section 106. HUD must develop regulatory best practices for state and local governments, covering permitting, code adoption timelines, manufactured housing restrictions, and urban growth moratoria. Treasury and HUD are instructed to align Opportunity Zone incentives to promote single-family construction. The order's implementation is subject to available appropriations.

Sources: www.federalregister.gov

Executive Order: Promoting Access to Mortgage Credit

Executive Order 14393, signed March 13, 2026, initiates reforms to improve mortgage credit access, targeting regulatory restrictions affecting community banks and smaller lenders. The Consumer Financial Protection Bureau is directed to amend Regulation Z and the Truth in Lending Act, potentially widening QM safe harbor for portfolio loans, updating timing rules, raising thresholds for HMDA reporting, and easing compliance for low-balance loans. Supervisory guidance is to be revised by the Federal Reserve, CFPB, NCUA, FDIC, and OCC to shift focus from technical compliance to ability-to-repay and sound underwriting. Agencies will review capital and liquidity frameworks for FHLBs and propose programs tied to residential mortgage assets. Construction lending guidance is to exclude 1–4 family housing from CRE concentration limits. Appraisal standards may be modernized, and digital mortgage documentation and e-signatures are encouraged. Enforcement and licensing requirements will be reviewed for duplicative burdens, and HUD is asked to report on national housing finance market efficiency.

Sources: www.federalregister.gov

Streamlining Public Works and Economic Development Investments Requirements

The Economic Development Administration (EDA) finalized amendments to 13 CFR part 305 on March 17, 2026, removing language related to bid overruns, project signs, and occupancy prior to final acceptance. Unnecessary clarifications have been eliminated to reduce regulatory complexity for recipients of public works and economic development grants. EDA clarified competitive processes for additional investment assistance in cases of bid overruns, eliminated generic signage references, and removed explicit occupancy risk statements already established under other federal regulations. No substantive rights or obligations are impacted, and the amendments are effective immediately.

Sources: www.federalregister.gov

CAS 407 Proposed Conformance to GAAP for Direct Materials and Labor Standards

The Office of Federal Procurement Policy issued a notice of proposed rulemaking (CASB 2025-02) aiming to align Cost Accounting Standards (CAS) 407 for standard costs of direct material and direct labor with Generally Accepted Accounting Principles (GAAP). Twelve of sixteen CAS 407 requirements are proposed for elimination, retaining select definitions and variance-accumulation procedures and moving them to CAS 418. Regulatory relief for contractors is anticipated, with reduced duplicative compliance and burden, especially for new mid-size and non-traditional contractors in federal procurement. Affected parties may submit comments by April 20, 2026.

Sources: www.federalregister.gov

RHS Single Family Housing Guaranteed Loan Program LITE Delegated Authority Pilot

The Rural Housing Service (RHS) announced the Lender Interactive Test Environment (LITE) Delegated Authority Pilot for the Section 502 Guaranteed Loan Program, effective September 1, 2026 through September 28, 2028. Eligible lenders demonstrating strong loan performance may be delegated loan approval authority, bypassing pre-closing agency approval. Lenders will use automated underwriting and closing systems and maintain compliance with regulations. Agency oversight includes a required post-closing review of up to 15 initial loan files, ongoing monthly portfolio assessments, and regular audits. Lenders must keep eligibility standards and respond to corrective action requests within 90 days or risk program removal.

Sources: www.federalregister.gov

Legislative Updates

21st Century ROAD to Housing Act

Bill 6644, covering housing and community development policy, was sent from the Senate to the House for further review. Pending House action, the bill covers updated standards for housing construction and development.

Sources: www.congress.gov

ACPAC Modernization Act

Bill 5663, addressing transportation and public works modernization, was placed on the Union Calendar, Calendar No. 470, facilitating consideration by the full House. The legislation proposes revised activities for federal infrastructure projects.

Sources: www.congress.gov

Leasing and Infrastructure Act of 2025

Bill 6599 relates to infrastructure leasing for national security purposes. Recent committee hearings were held, with further review by relevant committees scheduled.

Sources: www.congress.gov

Urban Canal Modernization Act

Bill 2753, focused on public lands and natural resources, underwent hearings with the Subcommittee on Water and Power (Energy and Natural Resources). Hearings covered canal upgrades and modernization.

Sources: www.congress.gov

A joint resolution providing for congressional disapproval of IRS rules on clean energy credits

Bill 107, a joint resolution disapproving the IRS rule on construction requirements for clean electricity credits, was placed on the Senate Legislative Calendar as General Orders Calendar No. 363. The resolution addresses eligibility criteria for wind and solar facility credits.

Sources: www.congress.gov

To amend title XLI of the FAST Act for infrastructure permitting cost thresholds

Bill 8003 proposes lowering the cost estimate threshold for qualifying infrastructure projects for streamlined permitting. The House Committee on Natural Resources received the bill for initial review.

Sources: www.congress.gov

HOWIE Act

Bill 8012 was referred to the House Committee on Transportation and Infrastructure. The bill may affect construction and public works contracting procedures.

Sources: www.congress.gov

Professional Services Licensing Bill

Bill 7985, restricting marketing or provision of professional services without appropriate licenses, was referred to the House Committee on Energy and Commerce. Licensing changes could apply to construction and trade firms.

Sources: www.congress.gov

What We're Reading This Week

• Mom-and-Pop Landlords Fret Over Mamdani’s Rental Plan: Small landlords voice concerns over proposed rental reform measures.
• Minority contractors say Trump DEI rollback poses threat to their livelihoods: Contractors claim new federal actions could challenge diversity-related business practices.
• Charts of the Week: Learning to Weld: Data charts analyze trends and obstacles in skilled trade welding training.

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