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: 2026-02-08 to 2026-02-14

📋 In This Week's Newsletter

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

Federal Government News

HUD Updates Section 3 Project Funding Thresholds for Housing and Community Development

The Department of Housing and Urban Development has released revisions to the Section 3 project thresholds, increasing the compliance trigger for housing rehabilitation, construction, and other public construction projects funded by HUD from $200,000 to $300,000, and from $100,000 to $150,000 for Lead Hazard Control and Healthy Homes programs. The update incorporates national construction cost inflation calculated using Bureau of Labor Statistics data from 2017 and 2023, showing a 49.6% increase in overall construction cost, with labor, capital, and materials comprising the largest shares of cost growth. The thresholds are now rounded for simplified compliance. The changes take effect March 16, 2026, impacting entities seeking HUD-funded construction or rehabilitation projects and altering the pool subject to Section 3 provisions related to hiring and business opportunities for low- and very low-income persons.

Sources: www.federalregister.gov

HUD Proposes Information Collection for Housing Choice Voucher and Tribal HUD-VASH Program

HUD issued a 60-day notice seeking public comment on changes to information collection for the Housing Choice Voucher, Project-based Voucher, and Tribal HUD-VASH programs. The proposal revises forms and processes to comply with HOTMA rule updates and recent executive orders, affecting over 2,200 public housing agencies and tribal entities. The estimated annual burden is 3.45 million hours, reflecting reductions from previous years and adjustments to reflect decreased interim changes and enhanced compliance. Changes include new forms for tenancy addendums after PBV termination and options for PHA-owned certifications in lieu of HAP contracts. Public comment on necessity, burden, and submission processes is due by April 14, 2026.

Sources: www.federalregister.gov

Removal of John Heinz Neighborhood Development Program Regulations

HUD finalized repeal of regulations for the John Heinz Neighborhood Development Program, citing the program’s last funding in 1998 and closure of all grants as of 2025. The decision was made under 24 CFR part 10 good cause provisions, determining notice and comment unnecessary. The repeal does not impact active HUD programs or ongoing grants and removes regulatory language considered outmoded or burdensome, aligning with Executive Order 14192 on deregulatory actions.

Sources: www.federalregister.gov

White House: Construction Wage Increases and Inflation Relief

President Trump’s administration reports that real wages increased by $2,100 in the construction sector during the past year as inflation fell to 2.4% in January. Middle- and lower-wage workers saw gains of 1.5%; construction was among sectors with notable average wage increases. Prescription drug costs continued to decline, attributed to recent policy reforms. The administration credits its anti-inflation agenda for these results which affected disposable income and industry labor cost dynamics.

Sources: www.whitehouse.gov

EDA Seeks Public Input on Construction Investment Compliance Processes

The Economic Development Administration has announced a request for public comment regarding reinstatement of information collection requirements for approved construction and non-construction investments. Proposed updates include clarifying post-award checklists for compliance with Build America, Buy America, environmental narratives, methodologies, and property reporting, particularly for Tribal recipients. Estimated respondent burden is 7,000 hours across 3,500 entities annually. Comments regarding necessity, accuracy, and improvements are accepted until April 13, 2026.

Sources: www.federalregister.gov

FEMA Renews Environmental and Historic Preservation Screening Form

FEMA is renewing its Environmental and Historic Preservation Screening Form (OMB 1660-0115) to facilitate environmental compliance reviews for grant-funded construction activities. Designed to ensure adherence to NEPA, NHPA, and Endangered Species Act requirements, the form must be completed by estimated 2,300 respondents, with a total annual burden of 16,752 hours. Public comment is requested by April 13, 2026.

Sources: www.federalregister.gov

Commerce Department Launches Information Collection for Defense Priorities and Allocations System (DPAS)

The Bureau of Industry and Security seeks input on planned information collection to support official actions under the Defense Priorities and Allocations System regulation, including actions related to high-priority construction materials like copper. The request responds to Presidential Proclamation 10962 and covers audits, set-asides, and directives for industrial resources, with an estimated burden of 9,000 hours across 500 respondents. Public submissions are accepted through April 13, 2026.

Sources: www.federalregister.gov

White House Announces Initiatives for Skilled Trades and Workforce Development

The Presidential Message for Career and Technical Education Month details efforts to expand skilled trades education, including an Executive Order realigning federal priorities, Workforce Pell Grants for short-term programs, and an apprenticeship expansion to over one million active participants. The administration states these measures are intended to equip workers for growth industries, including construction and mechanical contracting.

Sources: www.whitehouse.gov

OSHA Proposes Renewal of Information Collection for Aerial Lifts Standard

OSHA is seeking public comment to extend the OMB approval for information collection requirements under the Aerial Lifts Standard (29 CFR 1926.453). Employers that modify aerial lifts must obtain certification from manufacturers or qualified entities to show modifications meet safety standards. The notice maintains the previous reporting burden with no changes to the estimated workload. Comments must be submitted by April 13, 2026.

Sources: www.federalregister.gov

Transportation Alternatives and Recreational Trails Annual Report Information Collection Notice

The Federal Highway Administration announced a request for comment on annual reporting requirements for the Transportation Alternatives and Recreational Trails Program. The report captures data on applications, selections, costs, and project details for pedestrian, bicycle, and infrastructure projects across states and metropolitan planning organizations. Each respondent faces a 40-hour reporting burden; comments are due by April 10, 2026.

Sources: www.federalregister.gov

Legislative Updates

Apache County and Navajo County Conveyance Act of 2025

Bill 1829, the Apache County and Navajo County Conveyance Act of 2025, underwent a hearing by the House Energy and Natural Resources Committee's Subcommittee on Public Lands, Forests, and Mining on February 12, 2026. The legislation deals with public lands and natural resources, focusing on potential property conveyances affecting development and land use.

Sources: www.congress.gov

What We're Reading This Week

• Governors tackle rising cost of living with relief checks, tax cuts and housing policy: US governors pursue relief checks, tax changes, and housing measures to address affordability concerns.
• Mamdani Is Targeting Bad Landlords. What About Public Housing?: Coverage examines NY public housing policy and oversight amid campaigns against negligent private landlords.
• US labor market stabilizing; housing sector still subdued: Labor market steadies in the US, while housing construction and sales remain sluggish.
• ‘The Industry Comes In and Kills the Work of Local Citizens’: Local concerns intensify as Virginia’s data center boom disrupts community workforce and development.
• The U.S. Savings & Loans Crisis Part II: Band-Aids on a Dying Industry: The 1970s Presidents Who Kicked the S&L Ca…: Newsletter revisits the legacy of US savings & loan crisis on housing finance.
• .