The Build Now Act creates a new system for rewarding cities and counties that are successfully building more housing. Here's how it works: The federal government gives money to cities and counties through something called Community Development Block Grants to help with housing and community projects. This bill changes how that money gets divided up based on whether a city is actually building more homes than it used to.

Specifically, the bill measures how much each city's housing growth has improved compared to its past performance. Cities that are building significantly more homes than before—or cities that are already growing very fast (4% or more per year)—get bonus money on top of their regular allocation. On the flip side, cities where housing growth has slowed down compared to their historical rates lose 10% of their normal funding. The goal is to incentivize communities to remove barriers to housing construction, like restrictive zoning laws and complicated permitting processes.

The bill excludes certain cities from this system, like those dealing with recent disasters, areas where housing is already affordable and plentiful, or places with high rental vacancy rates. Before the system kicks in, the Department of Housing and Urban Development will notify every eligible city about how they're performing and provide them with resources about best practices for reducing housing regulations. The new funding formula starts in the third full fiscal year after the law passes and continues through 2043.