FIRST ON FOX: Senator Bill Hagerty is pushing the Freedom to Build Act to cut the so-called bureaucrat tax that pads the price of single-family homes by six figures, offering federal incentives for states and localities to roll back costly regulations and speed construction to make homeownership more achievable for more Americans.
Sen. Bill Hagerty, R-Tenn., argues that red tape at state and local levels has become a hidden tax on families trying to buy a home, and his bill aims to change that dynamic by creating a voluntary Freedom to Build designation. Communities that choose the designation would become eligible for federal grants intended to offset construction costs and reward sensible regulatory reform. This is about lowering barriers so builders can deliver more homes at lower prices, not about Washington dictating zoning rules.
“For many Americans, the dream of owning a home is increasingly out of reach, and excessive regulations have made new homes too costly for many American families,” Hagerty said in a statement to Fox News Digital. The senator’s approach leans on incentives rather than mandates, asking communities to opt in if they want federal relief and easier pathways to build. Republicans see that as a practical way to restore housing affordability without expanding federal control over local land use.
The Department of Housing and Urban Development grants tied to the designation would be an engine for change, giving local leaders a financial reason to trim duplicative approvals, unnecessary fees, and other barriers that slow projects and raise costs. By creating competitive advantages for jurisdictions that commit to reform, the plan tries to turn good policy into good politics at the local level. Builders, homebuyers, and mayors who want jobs and housing supply would all have a stake in making it work.
The White House’s Economic Report highlighted the size of the problem, calling the added regulatory burden a “bureaucrat tax” that can amount to six figures on a new single-family home. “Put even more concretely, the bureaucrat tax adds over $100,000 to the cost of a new single-family home,” according to the Economic Report of the President. Republicans point to those numbers to argue that common-sense rollbacks will free up supply, lower prices, and restore opportunity for first-time buyers.
That report also estimated the bureaucrat tax accounts for roughly a quarter of new-home costs, a claim that drives home how much regulations matter when supply is already tight. The result is fewer new homes coming online, longer build times, and higher prices passed to consumers. Fixing those choke points is presented as one of the clearest ways to expand housing without massive new spending programs.
“Reform at the state and local levels to tackle the sources of the six-figure bureaucrat tax would greatly enhance the ability of supply to keep up with stronger demand,” the report continued. The Freedom to Build Act pairs that diagnosis with an action plan: incentives that reward jurisdictions for adopting reforms that speed construction and reduce needless costs. The political argument is straightforward—give communities the tools and the cash to remove barriers, and the private sector will respond with more homes.
Meanwhile, the Senate advanced a larger housing package known as the 21st Century ROAD to Housing Act, which won bipartisan approval and aims to help first-time buyers and lower-income households. That bill also includes provisions to curb institutional investors from scooping up single-family homes, a controversial proposal that split opinion in the House. Republicans supportive of free markets want to protect homeowners and local neighborhoods, while also insisting on reforms that expand supply rather than only shifting ownership.
Hagerty’s plan is positioned as a conservative, market-friendly solution: shrink regulatory costs, unleash builders, and let competition and production bring prices down. It respects local control by offering a voluntary pathway tied to grants rather than federal mandates, which should appeal to lawmakers skeptical of top-down solutions. For voters watching home prices and dreaming of ownership, the pitch is clear—cut the bureaucrat tax, and you cut the price tag on the American Dream.
Graduate Student, wife, engaged political and legal writer.