Archived SI output (machine-generated)

State Eviction Diversion Incentive Act of 2025

Mode: Bill Generated by VFA SI Solutions Drafted: 2026.08.16

Archived SI output (machine-generated) · No editorial review recorded

This historical SI draft was machine-generated by software and has no editorial review time on record. Verify its factual and legal claims against the original source before relying on it.

Real bill

Stable Homes Act

External ID
HR/119/10103
Policy area
Housing and Community Development
Latest action
2026-08-13
→ View original
Archived SI draft (machine-generated)

State Eviction Diversion Incentive Act of 2025

Reduce homelessness and housing instability by providing federal grants to local governments to establish or expand programs that divert evictions before they occur.

Constitutional concerns with the original

  1. The bill's direct grant program to local governments may exceed Congress's enumerated powers under Article I, Section 8, as housing and landlord-tenant relations are traditionally state and local matters reserved by the Tenth Amendment.
  2. Without a clear nexus to an enumerated power (e.g., interstate commerce or spending for general welfare), the program may intrude on state sovereignty.

Solution text

This Act establishes a temporary, competitive grant program administered by the Secretary of Housing and Urban Development (HUD) to provide funding to states (including territories and the District of Columbia) for the purpose of creating or expanding eviction diversion programs. To be eligible, a state must submit a plan demonstrating how the funds will be used to provide mediation, rental assistance, legal aid, or other services that prevent evictions while respecting landlord property rights and due process. The program is funded by a specific appropriation from general revenues, capped at $500 million per fiscal year for five years. Each state grant shall require a 25% non-federal match, which may be in cash or in-kind services. HUD shall oversee compliance through annual reporting and audits, and any state that fails to meet program goals or misuses funds shall repay the grant with interest. The program sunsets after five years, with a final report to Congress on effectiveness and recommendations for any continuation.

Operative provisions

funding source
General fund of the U.S. Treasury, subject to annual appropriation
funding amount
$500 million per fiscal year, for five years
sunset years
5
oversight body
Office of the Inspector General, U.S. Department of Housing and Urban Development
enforcement mechanism
Repayment of grant funds with interest for noncompliance; debarment from future federal grants for willful misuse
effective date
October 1, 2025

Bipartisan rationale

Honors Democratic priorities: provides federal support to prevent homelessness and stabilize families. Honors Republican priorities: respects federalism by channeling funds through states with a non-federal match, imposes a sunset to limit permanent federal expansion, and includes accountability measures to prevent waste.

Constitutional citations

  • → Article I, Section 8, Clause 1 (Spending Clause: Congress may tax and spend for the general welfare, including grants to states with conditions)
  • → Tenth Amendment (powers not delegated to the United States are reserved to the states; this bill respects that by using state-administered grants rather than direct local mandates)

Article I, Section 8, Clause 1 Amendment X

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Generated by VFA SI Solutions · 2026.08.16 06:00 UTC · ← Back to the Republic