Federal subsidy pays builders to skip energy codes in low-income zones
H.R. 7282 — FRAMER Act · Filed by Jeff Crank (R-CO) · 2 cosponsors · Introduced Jan 30, 2026 · Referred to committee
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What it does
This bill creates a federal subsidy program requiring states to reimburse builders for the extra cost of complying with state energy codes in opportunity zones—the difference between what the state code costs and what HUD's minimum standard costs. Builders receive the payment from the state, and must disclose it to future home buyers. The program sunsets after 7 years.
Why we flagged it
The bill's stated purpose is to 'incentivize States not to enact costly energy codes,' but its operative mechanism is a direct federal subsidy to builders for compliance costs. It does not ban energy codes; it pays builders to offset them, effectively privatizing the benefit while socializing the cost.
What the text implies
- States face a fiscal penalty for maintaining stricter energy codes: they must either pay builders the subsidy or lose federal housing funds, creating a de facto federal veto over state energy policy without explicit prohibition.
- Homebuyers inherit the energy-efficiency gap: the disclosure requirement informs them of the subsidy but does not prevent higher long-term utility costs if they occupy a home built to a lower standard.
The full analysis lists 4 implications of this text.
Who stands to gain
residential builders and construction firms; real-estate investment trusts (REITs); real-estate development companies