Two people stand in line at the bank, both trying to get a home loan. One's a citizen who's paid taxes her whole life. The other isn't supposed to be in the country at all.
Right now, federal law has been blurry enough that both of them might walk out with a government-backed mortgage.
A new bill out of Congress wants to fix that.
Rep Brandon Gill just introduced a bill which would block foreigners from getting taxpayer-backed mortgages.
Last year, HUD Secretary Scott Turner terminated a Biden-era taxpayer-funded mortgage program for illegals
Insane that this even has to be done.
Taxpayer-backed…
— Libs of TikTok (@libsoftiktok) June 29, 2026
What's Going On
Rep. Brandon Gill, a Texas Republican, just introduced something called the Homeownership Eligibility Reform Act. It would make sure mortgages backed by the federal government, the kind that come through the FHA, Fannie Mae, and Freddie Mac, only go to U.S. citizens.
“I just introduced a bill to restrict taxpayer-backed mortgages to U.S. citizens only,” Gill wrote. “The sole purpose of our housing programs is to help Americans build wealth and achieve the American Dream. Illegal immigration is making that impossible.”
Sound Kind of Familiar?
Earlier this year, HUD Secretary Scott Turner tightened up the FHA rules. As of May 25, 2025, only U.S. citizens and lawful permanent residents, meaning green card holders, became eligible for FHA programs. That move reversed a Biden-era rule from 2021 that let DACA recipients with work authorization qualify for FHA mortgages.
So the door was already closing on illegal immigrants getting these loans. Gill's bill slams it shut and locks it.
The difference between this bill and an administrative rule, like the kind Turner put in place, is that the rule can be undone the second a new administration walks in the door.
Gill knows that. House Republicans are pushing to codify President Trump's immigration-related executive orders, arguing Democrats will try to reverse his policies once his term ends. Writing it into actual law makes it a lot harder to erase with a stroke of a pen.
Gill put it plainly: “There's no reason that American taxpayers should be subsidizing home loans for non-citizens or for non-permanent residents. This will fix that.”
How Many People Are We Talking?
Gill says about six percent of all FHA-insured mortgages went to non-citizens, including people without permanent legal status, before the rules changed.
And it's worth knowing what these “taxpayer-backed” loans actually are.
FHA loans require lower down payments and have easier qualifying rules than a regular bank loan. They're a leg up, backed by the full faith of the U.S. government, meant to help working Americans get into a house. That's the whole point.
What Critics Say
Some real estate groups have pushed back. Gary Acosta, who runs the National Association of Hispanic Real Estate Professionals, called the earlier HUD move surprising for Republicans, saying homeownership has traditionally been something the party champions for everyone. House Democrats have even introduced their own bill, the Housing Stability for Dreamers Act, trying to guarantee DACA recipients can still get these loans.
That's the other side of it.
But for those who think taxpayer-backed programs should be for taxpaying citizens, Gill's bill is exactly what's been missing.
What This Means Going Forward
This bill still has to make it through Congress, but it looks like Washington might be drawing a line on who federal housing help is actually for.
If government-backed loans are scarce and competitive, shouldn't citizens get first crack at them? For Nevada, where housing costs have climbed faster than a lot of paychecks, that's not an extreme position.
Whether Congress agrees is a different story.
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