By Libby O’Neill, NLIHC Senior Policy Analyst
Representatives Alexandria Ocasio-Cortez (D-NY) and Delia Ramirez (D-IL) and Senator Bernie Sanders (I-VT) reintroduced major legislation to improve public housing on August 6 – the “Green New Deal for Public Housing Act.” The bill would provide much-needed investments in the nation’s public housing stock to address the growing backlog of maintenance needs, including improvements in energy efficiency, resilience, and sustainability. NLIHC has endorsed the bill and applauds these lawmakers for introducing a visionary proposal that would meaningfully address the affordable housing crisis by investing in the preservation and maintenance of public housing, a vital source of affordable rental housing for households with low incomes.
The bill would establish two grant programs within HUD that would provide grants to public housing agencies (PHAs), Indian Tribes or Tribally designated housing entities, and the Department of Hawaiian Home Lands to support workforce development programs, and to substantially rehabilitate their properties. The bill has two major goals: rehabilitating public housing stock, including deep energy retrofits and investments in renewable energy, with the goal of transitioning properties to zero carbon; and creating good-paying union jobs, including jobs for public housing residents.
Workforce development grants would prioritize creating high-paying jobs for subsidized housing residents, developing apprenticeships and other job training programs, and providing relocation assistance for residents impacted by construction. Capital grants can be used for deep energy retrofits, bringing buildings up to compliance with relevant codes and the “Americans with Disabilities Act,” renewable energy, community programs such as childcare centers, and disaster resilience.
The nation’s public housing stock has been consistently underfunded for decades, leading to a massive capital needs backlog. Various studies estimate the need to be between $90 billion (2023 National Association of Housing and Redevelopment Officials study) and $170 billion (2025 Council of Large Public Housing Authorities study). Recent annual appropriations in the Public Housing Capital Needs fund have been around $3.4 billion—not nearly enough to address these needs. There are currently more than 1.5 million people living in public housing, many who have extremely low incomes. Public housing residents’ rent payments are subsidized, such that they are not paying more than 30% of their income on rent. While this provides affordability and stability to many households, there is a great need to improve physical conditions at public housing properties to make sure they provide safe, healthy housing for residents. The “Green New Deal Act” does not specify an amount of funding but would appropriate such funds “as necessary to address the existing public housing capital backlog.”
The bill would also repeal the Faircloth Amendment, a rule that limits the construction of new public housing developments. PHAs are allowed to build new housing up to the limit set by the Faircloth Amendment in 1999, however, recent actions by the administration have threatened their ability to do so, including ending the Restore-Rebuild Initiative, which allows PHAs to get necessary approvals to access the financing they need to build new housing (see Memo, 6/1). In addition, the president’s FY27 proposed budget would reset the Faircloth limit to the current number of PHA units, effectively making it so that no new units can be built.
Public Housing is an essential source of deeply affordable housing for low-income households. NLIHC urges Congress to take action to improve the nation’s public housing stock, which has been neglected for decades. Public housing residents deserve safe, healthy, and affordable housing. The “Green New Deal for Public Housing” includes bold actions to not only make physical improvements, but to empower communities and create a more sustainable future for public housing.
Read the bill text.
Read a section-by-section summary of the bill.
Read NLIHC’s Advocates’ Guide 2026 article on Public Housing.