The federal legislation could also complement California laws like AB 609, which exempts infill housing from state environmental review, by exempting those projects from national review as well.

Other recently passed California laws could get a boost from Congress’ package, including SB 79, which encourages dense housing near busy bus stops and train stations. That law could work in tandem with Congress’ package, which would reward projects built near public transit with easier access to federal funding.

The proposed federal bills could also help California develop housing more quickly by encouraging localities to approve standardized designs.

Tara Roche, project director for the Pew Charitable Trusts’ housing policy initiative, pointed to a 2023 California law that required cities and counties to create pre-approved designs for accessory dwelling units (ADUs), also known as in-law units or granny flats.

Congress’ bill takes that a step further by offering grants to local governments to develop a similar type of “pattern book” for ADUs, as well as for duplexes and townhomes. Roche said that could speed approval timelines.

Still, California housing advocates say the bill package could go further to penalize cities and counties that don’t want to allow more housing. Foote said she doesn’t think the bills “will greatly change the incentives for cities” in California.

A site of new middle housing units is under construction at 2824 D St. in Sacramento on Oct. 7, 2025. Developers are reviving “middle housing” such as duplexes and cottage clusters, but say California’s rollout of the new rules has been anything but smooth. (Tâm Vũ/KQED)

“This doesn’t have a lot of sticks,” she said. “This is all carrots.”

Bay Area Congressman Sam Liccardo, D-16, sponsored two of the bills that became part of the House’s package, which focus on making it easier to build affordable and infill housing with federal dollars. He said the reality of these bills is that they “will marginally reduce the cost of construction,” but said every dollar counts.

And, he said, the fact that Congress was able to agree on something is in itself commendable.

“It’s a group of modest improvements on housing policy,” he said. “We need to do far more, and we need to go far faster, but I think we should celebrate a first step.”