
"The memo arrived nearly two months after Austin lost a $105 million grant for the Interstate 35 cap-and-stitch program, which was initially awarded last year. That funding was lost as part of a national rescission of unobligated Neighborhood Access & Equity awards, even though the city had already committed $104 million in local money to ensure structural supports are included in TxDOT's rebuild of I-35 through downtown."
"In late July, the Senate Banking, Housing, and Urban Affairs Committee advanced the ROAD to Housing Act of 2025, aimed at expanding housing supply and improving affordability. In the U.S. House of Respresentatives, lawmakers have introduced the Identifying Regulatory Barriers to Housing Supply Act and the Housing Supply Frameworks Act, both intended to address local land-use restrictions and permitting delays. City staff noted these measures to illustrate how federal debates on regulatory reform could shape Austin's own affordability strategies."
Federal funding for programs Austin relies on for housing, infrastructure, and mobility is increasingly unpredictable, shifting responsibility to state and local leaders to secure resources. Austin lost a $105 million grant for the Interstate 35 cap-and-stitch program after a national rescission of unobligated Neighborhood Access & Equity awards, despite committing $104 million locally to support structural elements of TxDOT's downtown I-35 rebuild. Mayor Kirk Watson urged the congressional delegation to protect Community Development Block Grant and HOME funds as essential to affordability, infrastructure, and homelessness prevention, and warned that restructuring housing programs could reduce local discretion. Several housing bills in Congress, including the Senate's ROAD to Housing Act of 2025 and House proposals addressing regulatory barriers and permitting delays, could affect local affordability and permitting strategies.
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