House Republican Introduces Bill to Reserve Federal Mortgages for U.S. Citizens

The big picture: A new House bill would permanently limit taxpayer-backed home mortgages to U.S. citizens, escalating the debate over immigration, housing affordability, and federal housing policy.

Why it matters

Rep. Brandon Gill (R-Texas) introduced the Homeownership Eligibility Reform Act (H.R. 9514), legislation that would restrict federally backed mortgages through the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac to U.S. citizens only. The proposal would write into federal law restrictions that Republicans argue prevent future administrations from reversing current policy.

The bill arrives as housing affordability remains one of the nation’s top economic concerns.

By the numbers

• The Federal Reserve Bank of Dallas recently published research estimating that recent immigration increased U.S. home prices by approximately 30% and rents by roughly 20% in affected markets, while housing supply failed to keep pace with demand.
• Supporters of the legislation argue those findings demonstrate how increased housing demand can worsen affordability when new construction lags behind population growth.

The Federal Reserve study has become a central talking point for lawmakers advocating stricter immigration and housing eligibility policies.

What’s changing

The Homeownership Eligibility Reform Act would:

• Limit FHA-insured mortgages to U.S. citizens.
• Prevent Fannie Mae and Freddie Mac from purchasing or guaranteeing mortgages made to non-citizens.
• Codify these restrictions into federal law instead of leaving them subject to executive branch policy changes.

The backdrop

The proposal follows actions already taken by the Trump administration.

In 2025, the U.S. Department of Housing and Urban Development revised FHA residency requirements by eliminating eligibility for non-permanent residents, including many applicants who previously qualified under earlier guidance. Lawful permanent residents (green card holders) remain eligible under current policy.

Gill’s legislation would go further by extending citizenship requirements across additional federally backed mortgage programs.

What supporters say

Gill argues taxpayer-supported mortgage programs should be reserved exclusively for American citizens.

Supporters contend the measure protects limited housing resources, reduces taxpayer exposure, and prioritizes first-time American homebuyers during a period of elevated home prices and mortgage rates.

What critics are likely to argue

Opponents are expected to contend the proposal excludes many legal residents who pay taxes and contribute to the economy, including lawful permanent residents. Housing economists also note that long-term affordability depends heavily on increasing housing supply through new construction, zoning reform, and infrastructure investment, in addition to demand-side policies.

What to watch

The bill faces an uncertain path through Congress, but it reflects a broader Republican effort to permanently codify Trump administration immigration and housing policies rather than relying solely on executive action.

As housing affordability remains a dominant issue heading into the next election cycle, proposals linking immigration policy with homeownership are likely to receive increasing attention on Capitol Hill.