Treasury Secretary Scott Bessent revealed plans for President Trump to potentially declare a national emergency to address escalating housing costs in the U.S. during an interview with the Washington Examiner. Bessent stated, “We may declare a national housing emergency in the fall,” highlighting affordability as a central focus for the administration ahead of the 2026 midterm elections.
Bessent emphasized that Federal Reserve rate cuts could ease post-pandemic housing price surges but acknowledged the need for additional measures to reduce costs and increase supply. While specific actions remain unspecified, he mentioned studies on standardizing local building codes and lowering closing costs. The secretary also floated the possibility of tariff exemptions for construction materials.
“We’re trying to figure out what we can do, and we don’t want to step into the business of states, counties, and municipal governments,” Bessent said, adding, “I think everything is on the table.”
He expressed optimism about the 2026 economic outlook despite uncertainties surrounding tariffs. “I think we’re going to see a big economic pickup in 2026,” he predicted, referencing a restaurant owner’s tax refund under Trump’s policies. Bessent also praised the administration’s efforts to reduce prescription prices and boost housing supply through simplified permitting processes.
The housing market has faced challenges due to tight monetary policy, with rising costs affecting millions of Americans. Bessent noted that rental prices are beginning to decline, offering relief to non-homeowners, while anticipating increased real estate activity as interest rates fall.