Bessent: Trump May Declare National Housing Emergency This Fall

Treasury Secretary Scott Bessent told the Washington Examiner on Monday that President Donald Trump might declare a national housing emergency this fall to address rising prices and dwindling supply.

It would be the first national housing emergency since the Great Recession, when the housing bubble burst as President Barack Obama was preparing to take over the White House from former President George W. Bush.

Since taking office, President Trump has declared nine national emergencies, ranging from immigration to trade, and in August added an emergency targeting violent crime in Washington. Now his administration is signaling that housing could be next.

The Trump administration does not want to override state and local control, but Bessent suggested the White House is exploring options such as standardizing zoning codes, lowering closing costs, and even granting tariff exemptions for construction materials.

The remarks come as Trump seeks to position "affordability" as a centerpiece of Republicans' 2026 midterm platform. The "No Tax on Tips" provision in the recently signed One Big Beautiful Bill Act is part of that push, with the administration also eyeing housing relief as a key pillar.

Bessent expressed optimism about the broader economy, predicting a "big economic pickup in 2026," buoyed by Federal Reserve rate cuts and Trump's reciprocal tariffs — though he acknowledged uncertainty over how businesses will pass costs on to consumers.

A full transcript of Bessent's interview with the Examiner is expected later Tuesday.

Trump blasted Federal Reserve Chair Jerome Powell in August for "hurting" the housing industry "very badly" as the president campaigned for lower interest rates.

Trump has repeatedly urged Powell to cut those rates while criticizing the Fed chairman.

"Could somebody please inform Jerome 'Too Late' Powell that he is hurting the Housing Industry, very badly?" Trump wrote on Truth Social. "People can't get a Mortgage because of him. There is no Inflation, and every sign is pointing to a major Rate Cut."

The 2008 housing crisis was the blowup of a credit bubble built on easy money and weak underwriting. For years, lenders pushed adjustable-rate and subprime mortgages to borrowers who often could not afford them, then sold those loans to Wall Street. Banks bundled mortgages into securities and complex products, which ratings agencies often stamped as safe despite thin cushions against default.

Cheap credit, speculation, and the belief that home prices "always go up" inflated demand and prices, while leverage spread the risk through the global financial system.

When rates reset higher and prices stopped rising, due to an economic downturn, delinquencies spiked.

Falling home values trapped owners underwater, foreclosures surged, and the value of mortgage securities collapsed. Confidence evaporated, interbank lending froze, and several major institutions failed or required rescues, turning a housing bust into a global financial crisis.

The fallout included deep job losses, a wave of foreclosures, and massive wealth destruction. Policymakers responded with bank backstops (e.g., TARP), aggressive Fed actions (near-zero rates and quantitative easing), and later reforms like Dodd-Frank and the Consumer Financial Protection Bureau to tighten mortgage standards, curb risky trading, and stress-test big banks.

What's Possible Under Such a Declaration

If Trump declares a national housing emergency, it would not give him unlimited authority but would allow him to activate certain statutory powers under the National Emergencies Act of 1976 (50 U.S.C. §§ 1601–1651). This could include directing federal agencies such as the Department of Housing and Urban Development (HUD) and FEMA to expand aid programs, issuing eviction moratoriums as the CDC attempted during COVID-19, repurposing federal land or buildings for temporary shelter, and using the Defense Production Act of 1950 to prioritize construction materials and resources.

He could also trigger funding through the Stafford Disaster Relief and Emergency Assistance Act, which provides for temporary housing, rental support, and repair programs in emergencies.

However, presidential authority would face limits. For instance, a president could not seize private homes or impose nationwide rent controls without explicit legislation from Congress, and many large-scale housing programs would require new appropriations. Judicial review would also be a major check — most notably, the Supreme Court struck down Biden’s extended eviction moratorium in 2021, signaling that courts are willing to curb emergency housing measures viewed as executive overreach.

Material from Newsmax wires contributed to this report.