Blog

LOS ANGELES (AP) — A sprawling legislative package aimed at lowering the cost of housing and spurring more home construction won bipartisan approval from Congress this week, but it’s hit a major roadblock in becoming law: President Donald Trump.

The White House supported the 21st Century ROAD to Housing Act, but on Wednesday Trump canceled the signing ceremony for the bill, saying he would not sign the measure until Congress passes legislation that would require proof of citizenship for all voters.

Here’s what to know.

How significant is this housing legislation?

The measure is the culmination of months of negotiations by lawmakers who combined dozens of bills meant to address how housing affordability for both renters and aspiring homeowners in the U.S. has grown increasingly out of reach for many Americans.

The bill would reduce federal regulations, streamline environmental reviews, speed up the construction process and curb the influence of corporate landlords by limiting their ability to purchase single-family homes.

Still, it’s not a silver bullet for all the factors that contribute to reduced housing affordability, including lack of construction labor, rising insurance costs and years of subdued wage growth relative to sharply rising rents and home prices.

Even so, the bill has drawn broad support from the real estate industry, including organizations representing homebuilders and apartment complex owners, as well as housing advocates.

“We need more homes built, and legislation that removes construction barriers is exactly what the market needs right now,” said Daryl Fairweather, chief economist at Redfin. “Homebuyers who were hoping for relief may have to wait even longer, and in a market already starved for inventory, that’s a tough pill to swallow.”

What led lawmakers to pass the first major housing legislation in decades?

Housing has grown into a hot-button issue among voters in recent years as homeownership and rents in many areas have become less affordable for many Americans.

The U.S. housing market has been in a slump since 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes were essentially flat last year, stuck at a 30-year low. While sales accelerated in May to their fastest pace since December, they continue to hover close to a 4 million annual pace, far short of the historic norm that is closer to 5.2 million, limited partly by elevated mortgage rates.

Years of soaring home prices, especially in the early part of this decade when rock-bottom mortgage rates fueled a buying frenzy, have left many would-be homebuyers frozen out of the market. And a chronic shortage of homes for sale nationally, due partly to years of below-average new home construction, has helped prop up home prices even in a multiyear sales slump.

Home prices have increased 54% nationwide since 2020, and last year the median existing single-family sales price was nearly five times the median household income, according to researchers at Harvard’s Joint Center for Housing Studies.

Renters, meanwhile, have seen little improvement in affordability. While the median U.S. monthly rent has been declining for nearly three years, it was still 17.2% higher in May than before the pandemic, according to data from Realtor.com.

What if the bill doesn’t become law?

One of the biggest hurdles to homeownership has been an imbalance between supply and demand in many parts of the country.

When there are fewer homes on the market, that helps prop up home prices even during a slowdown. Conversely, during times when mortgage rates are low, buyers end up competing for fewer homes, which drives up prices.

The housing bill would help increase the supply of housing, particularly when it comes to smaller, more affordable starter homes.

It amends existing regulations to boost construction of manufactured homes, which tend to be more affordable than other types of newly built homes, and expand access to government-backed loans to include construction of standalone dwellings a homeowner can rent out.

The bill also provides new dollars for communities to turn abandoned infrastructure into housing, and provides guidelines for communities that want to reform outdated zoning regulations, which often limit larger housing developments.

“It won’t make housing more affordable overnight, but in the coming years we will see more construction of town homes, multifamily housing, and ADUs,” notes Fairweather, saying the additional supply “will relieve the pressure on home prices, and make it easier for homebuyers to break into the market.”

What about renters?

The legislation includes a broad set of provisions, including an expansion of government rental assistance and affordable housing construction programs , and measures aimed at encouraging state and local governments to make it easier to build new homes and apartments, including federal funding to places exceeding the median rate of homebuilding.

In addition, the bill would raise limits on the number of public housing units that can receive financing for renovations and codify a recovery program to help expedite funds to communities rebuilding after disaster.

It also requires new renter protections.

“Families are struggling under the heavy weight of housing costs that have climbed for decades,” said San Diego Mayor Todd Gloria, who is president of the U.S. Conference of Mayors. “There’s no time to waste. Without federal action, America’s housing shortfall will continue to grow, falling another 2 million units behind in the next five years.”

What happens if the bill signing is held up for weeks or longer?

While hailed as a significant step, the federal government’s power to dictate things like how many homes are built or rents is limited, given that most of the regulations on construction, such as zoning laws, and other facets of real estate are determined by local and state governments.

So, even if the bill is delayed, it’s not like it would have had an immediate impact on local house prices, for example. But it would set back the clock on new construction projects that might not otherwise get the go-ahead.

“The sooner this bill becomes law, the sooner builders and homebuyers will benefit from its downstream effects,” said Danielle Hale, chief economist at Realtor.com. “Even if the president were to sign this bill immediately, many of the provisions will take time to impact builder planning and projects in the pipeline, so there is going to be a delay before consumers feel the impacts of this legislation either way.”

What happens next?

Trump’s decision to not sign the legislation into law Wednesday could end up just temporarily delaying the measure from taking effect.

The House passed the bill in a 358-32 vote on Tuesday and the Senate passed it 85-5 on Monday. That level of support is what’s colloquially called a veto-proof majority.

Still, if Trump were to veto the measure, the Senate and the House would have to vote again to override the veto.

It may not come to that.

Speaker Mike Johnson said Wednesday that he had spoken with Trump earlier in the day and was confident the president would sign the bill.

“The president, when we go through the details of the bill, he’s going to understand that it’s a good product,” Johnson said.

NEW YORK (AP) — All 32 of the nation’s biggest banks passed the Federal Reserve’s annual “stress test” of the financial system, the central bank said Wednesday, a sign that the banking system would remain healthy even if a major economic contraction occurred.

The annual stress test measures whether a bank’s capital, a financial cushion it uses to absorb losses, would remain at healthy levels even after hundreds of billions of dollars in projected losses. The tests are required under the Dodd-Frank Act, the law passed after the 2008 financial crisis that nearly brought down the global financial system.

The 2026 scenario that the Fed used is similar to the one they used last year. In the Fed’s scenario, unemployment would rise from 5.5% to 10% and the U.S. economy would contract 4.6%. Housing prices would fall 30% from their current levels and the stock market would plunge 58%.

The scenario would result in the nation’s 32 biggest banks facing $708 billion in loan losses, but the overall capital ratio of these banks would fall only 1.6 percentage points, from 12.8% to 11.2%. By law and regulation, these large banks’ common equity Tier 1 capital ratio must remain above 4.5%, plus additional buffers that vary by bank.

The stress test applied only to the nation’s most systematically important banks, those whose failures would bring significant turmoil to the financial system.

A bank that performed poorly on the stress test could face higher capital requirements, which could limit its ability to pay dividends or buy back stock. Banks typically announce their plans for dividends and share repurchases after the Fed releases the stress-test results. Shortly after the Fed’s announcement, JPMorgan Chase said it would increase its quarterly dividend to $1.65 a share from $1.50 a share, and intends to buy back an additional $50 billion in stock.

NEW YORK (AP) — In his four years as New York mayor, Eric Adams’ administration was roiled by corruption probes that led to early-morning FBI searches, resignations of top officials and indictments that alleged a rampant culture of pay-to-play politics at the highest levels of City Hall.

Even with Adams now far from elected office and facing no charges himself, that saga continues.

On Wednesday his former chief of staff, Frank Carone, was arrested on federal charges alleging that he accepted $120,000 in bribes in exchange for steering a multimillion-dollar migrant shelter contract to a Queens hotel. Three others, including Carone’s brother, were also indicted. All have pleaded not guilty.

Another of Adams’ closest allies, Ingrid Lewis-Martin, is still fighting separate bribery charges, which include allegations that she exchanged political favors for cash, diamond earrings and a speaking role on a TV show.

And Adams himself was indicted on bribery charges in 2024, accused of taking illegal campaign contributions from Turkish officials and providing political favors to them in return. Adams, a Democrat, denied any wrongdoing and those charges were later dropped at the behest of the Trump administration.

Here is a look at some of the criminal investigations that cast a pall over the nation’s largest city during Adams’ tumultuous tenure and its aftermath:

Corruption probe launched early in Adams’ mayoral term

Soon after Adams took office in January 2022, federal agents quietly began a corruption investigation into his campaign. It spilled into public view in the fall of 2023, when authorities seized his phones as he was leaving an event. A year later, federal prosecutors brought fraud and bribery charges against him.

The indictment accused Adams of allowing Turkish officials and other businesspeople to buy his influence with illegal campaign contributions and steep discounts on overseas trips. Among the favors he allegedly provided in return was accelerating the opening of Turkey’s diplomatic building in New York, prosecutors said.

Adams denied wrongdoing and insisted, without evidence, that the Biden administration had politically targeted his administration because of his criticism of its immigration policy.

But soon after President Donald Trump returned to the White House in early 2025, Justice Department leadership ordered Manhattan federal prosecutors to drop the case, arguing that it was hindering the mayor’s ability to assist Trump’s immigration crackdown.

The investigation severely wounded Adams’ efforts last year to seek reelection. He skipped the Democratic primary and got on the ballot as an independent, but eventually ended his campaign early.

Top adviser accused of trading influence for diamond earrings and a TV show cameo

As former chief adviser, Lewis-Martin was perhaps the only city official with more direct access to Adams than Carone.

In 2024 she too was indicted for allegedly trading her influence for bribes worth more than $100,000 from those with business before the city. Lewis-Martin has denied wrongdoing.

In one instance, prosecutors said, Lewis-Martin agreed to quash a planned bike lane near a Brooklyn soundstage at the request of the studio’s owners in exchange for perks including a promised role on the police drama “Blue Bloods.”

In a separate scheme, prosecutors said, she accepted diamond earrings and cash from two real estate developers and then helped to speed up approvals of their projects, at times overriding safety concerns from city regulators.

Her attorney Arthur Aidala — who is also representing Carone — has said she was simply helping constituents cut through the city’s thick red tape.

The case against Lewis-Martin was brought by the Manhattan District Attorney Alvin Bragg, and a hearing is scheduled for Thursday.

Other allies resigned but have faced no charges

Many who departed Adams’ administration under a cloud of scandal — often after having their devices seized and homes searched by federal agents — have not faced charges.

Among them: an adviser to the Chinese community who handed a potato chip bag full of cash to a reporter after an Adams campaign event; the former police commissioner, whose twin brother was accused of extortion by a Brooklyn bar owner; and Adams’ schools chancellor and deputy mayor, also brothers, whose third brother ran a consulting firm that connected clients with city officials.

Each has denied wrongdoing, and none has been charged with a crime.

Federal authorities have declined to disclose the purpose of their searches and whether any of the investigations remain active.

Some low-level associates pleaded guilty to charges involving illegal campaign funds

Even after the charges against Adams were dropped, prosecutors continued to pursue cases against some of the lower-level operatives involved in the indictment.

One, a Brooklyn real estate magnate, was sentenced to a year of probation last summer after pleading guilty to working with a Turkish government official to funnel illegal donations to Adams’ 2021 campaign.

And in November an Adams aide who served as his liaison to the city’s Muslim communities was sentenced to three years of probation for soliciting illegal campaign funds.

Before handing down that sentence, Judge Dale Ho, who also presided over the case against Adams that was dismissed, likened the mayor’s absence to an “elephant in the room.”

“There’s a notable absence here of the person at the apex of the pyramid,” he said.

___

Collins reported from Hartford, Connecticut.

AI-powered software has allowed gas station operators across California to illegally collude and drive up prices at the pump, according to a federal lawsuit.

The proposed class action lawsuit, filed Monday, accuses gas station giants including Marathon and Circle K of violating California’s antitrust law through Kalibrate, a fuel-pricing software system used across the world. The plaintiffs describe Kalibrate as the “central nervous system for a conspiracy to extinguish retail price competition among gas stations.”

According to the lawsuit, Kalibrate helps “coordinate high prices” and even discourages its users from pricing their gas lower than competitors, saying that doing so would trigger a “downward spiral.”

“Kalibrate promises that if gas stations surrender their pricing decisions and competitively sensitive cost and volume data to Kalibrate Fuel Pricing, the software will enable them to avoid competing with other area stations and to charge higher prices to consumers,” the lawsuit said.

Californians already pay some of the highest gas prices in the nation, and prices have surged across the globe since the start of the Iran war.

The lawsuit is the latest to accuse software companies of driving up the cost of living for millions in the U.S. Other examples include the Department of Justice’s lawsuit against RealPage, which has been accused of helping landlords drive up rent prices, and the DOJ’s lawsuit against Agri Stats, a data-sharing company accused of helping the meatpacking industry inflate grocery prices. The DOJ has settled both of those lawsuits in the past year, though various state attorneys general are still pursuing lawsuits against RealPage and numerous property management companies.

Concern over algorithmic pricing prompted Democratic California Gov. Gavin Newsom last year to sign a bill saying that state antitrust law applies to pricing algorithms, helping to pave the way for this week’s lawsuit.

Kalibrate is headquartered in Manchester, England, and operates in more than 70 countries. It did not respond to a request for comment Wednesday.

The lawsuit accuses Kalibrate of facilitating cartel-like collusion. Only this time, instead of competitors making a secret deal “over cigars in a smoky back room,” the price-fixing is done through AI, according to the lawsuit.

“As technology has advanced, so too have the mechanisms available to competitors to fix prices without the cigars, the smoke, or even the room,” the lawsuit says.

Among the examples the lawsuit lists is a “restoration” tool that helps “nearly all gas stations in an area raise their prices contemporaneously and by a large amount.”

According to the lawsuit, research into algorithmic fuel-pricing software found average price increases of about 6 cents per gallon, rising to as much as 30 cents per gallon in markets where many stations use the technology.

“Because of the volume of fuel sold across California, a single cent increase at the pump will drain a whopping $134 million from California drivers’ wallets every year across the state,” the lawsuit says.

The defendants in the lawsuit — which also include BP, Speedway, EG America, Walmart and Albertsons — collectively operate more than 1,700 gas stations in California, according to the lawsuit. None of them immediately responded to a request for comment.

The lawsuit seeks to represent California drivers who bought gas at stations using Kalibrate software since June 2022.

JOHANNESBURG (AP) — Civil society organizations in South Africa said Wednesday that adolescent girls and women are among the first vulnerable groups to feel the pinch of U.S. foreign aid cuts as the Trump administration phases out its more than $400 million support annually for the country’s HIV programs.

The U.S. State Department has said that it would “begin a phased drawdown” of the President’s Emergency Plan for AIDS Relief, or PEPFAR, a program that has supported South Africa’s battle against HIV and AIDS for the last 20 years and is widely credited with saving more than 20 million lives over that period.

The phasing out of most programs is expected to be completed by the end of September, with critical personnel support continuing through March next year, according to the U.S. State Department.

South Africa has the highest number of people living with HIV, with approximately 8 million people, or about 12.7 % of its 63 million population.

The country was singled out for the halting of financial aid in addition to broader foreign aid cuts announced by U.S. President Donald Trump in an executive order issued in January 2025.

Trump announced a halt to all financial aid to the country the following month, citing political issues which included South Africa’s Black Economic Empowerment policies and widely disputed allegations of a genocide against the white minority Afrikaner community in the country.

He also cited South Africa’s land expropriation laws as targeting white Afrikaners and condemned the country’s actions against Israel at the International Court of Justice, where it has accused Israel of committing a genocide in Gaza. Israel vehemently denies the allegation and has said that the attack by Hamas-led militants on southern Israel on Oct. 7, 2023, which killed around 1,200 people, was itself a genocidal act.

A U.S. State Department spokesperson told The Associated Press this week that the South African government had been informed that PEPFAR would be withdrawn if these issues weren’t addressed, which included a requirement for senior government officials to “unequivocally condemn all race-based incitement to violence, including the ‘Kill the Boer’ song, more frequently.”

The anti-apartheid liberation song has been interpreted by some as calling for violence against Afrikaners.

According to the South African government, the PEPFAR funding for South Africa was equivalent to about 17% of its budget for HIV programs, but this didn’t include the purchase of antiretroviral drugs, since 90% of this was self-funded and the other 10% funded by the Global Fund.

However, other HIV related programs in 27 districts around the country had been adversely affected, with some support facilities shutting down and front-line workers and volunteers losing their jobs.

“The department has long been working on a self-reliance plan to minimize the impact of funding withdrawal since the initial freeze on foreign assistance and a cancellation of USAID grants in January 2025,” South Africa health department spokesperson Foster Mohale said.

Last year, the country announced a $45 million emergency fund to address some of the gaps created by the withdrawal of PEPFAR.

According to civil society group Section27, which has assessed the impact of the funding withdrawals in three districts that have high HIV prevalence in South Africa, prevention services were hardly hit.

“As the health system started to feel the pressure, the response was to prioritize treatment continuity versus prevention,” Section27 senior legal researcher Tendai Mafuma said.

The Anova Health Institute said that it had discontinued its PEPFAR-funded programs and laid off about 3,000 health workers since last year.

“Community delivery of PrEP (preexposure prophylaxis) and prevention services has been heavily impacted,” said Dr. Kate Rees, public health medicine specialist at Anova. “Community delivery of prevention is important to reach the people that need it most.”

She said that priority populations which include children, adolescents and young people were among the most affected, along with key population which include men who have sex with men and people who use drugs, among others.

___

For more on Africa and development: https://apnews.com/hub/africa-pulse

___

The Associated Press receives financial support for global health and development coverage in Africa from the Gates Foundation. The AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.