Rep. McClintock Demands End to Housing Subsidies as Affordability Crisis Deepens

Rep. Tom McClintock, R-Calif., said Thursday Congress must eliminate housing subsidies and grants from a bipartisan housing package, arguing government intervention—not insufficient federal spending—is the root cause of America’s housing affordability crisis.

McClintock criticized legislation recently passed by Congress but still pending before President Donald Trump, stating it overreliance on federal subsidies raises housing prices while masking benefits for recipients. “Stop all of the subsidies,” he said. “That thing is chock full with subsidies and grants. All those do is force up the price of housing for everybody while hiding it for those that are lucky enough to qualify.”

The California Republican urged lawmakers to focus on reducing regulations he claims have constrained housing construction for decades, citing former President Ronald Reagan’s warning: “Government is not the solution to this problem. Government is the problem.” McClintock noted builders previously constructed homes across income levels but now face government-imposed restrictions and subsidies that have made housing unaffordable, particularly in states like California.

To illustrate the disparity, McClintock compared homebuilding activity between California and Texas: “There were more building permits issued in Dallas and Houston last year than in all of California combined.” He highlighted the median home price difference, noting it is $360,000 in Texas versus $910,000 in California.

Housing affordability has become a critical economic issue, with elevated mortgage rates, limited housing inventory, and rising construction costs pushing homeownership out of reach for millions. Economists identify restrictive zoning laws, labor shortages, material costs, demographic shifts, and financing conditions as key contributors to the affordable housing shortage, though lawmakers remain divided on federal action.

McClintock made his remarks following discussions about stalled Republican legislative priorities in the House. He noted Speaker Mike Johnson, R-La., delayed progress after Republicans failed to adopt a procedural rule for advancing measures. McClintock stated Johnson is working to include the SAVE America Act in a budget reconciliation package to pass with a simple Senate majority: “That will only require a majority vote in the Senate. The Democrats can’t block it as long as Republicans stand firm.”

He blamed Republican opposition for blocking progress, adding that “the rule that accomplishes [this] was voted down, including 14 Republican members.” McClintock challenged colleagues to question their actions: “I think folks need to be asking them, what in the world are you thinking?”

The House is expected to resume legislative work after the Independence Day recess, with Republican leaders targeting both reconciliation efforts and housing legislation that has sparked divisions among conservatives over federal involvement in affordability.