Legislation aims to streamline federal approvals while preserving local zoning and building requirements.

A bipartisan proposal in Congress could help reduce delays for housing developments and infrastructure projects that require federal permits, potentially making it easier to move projects forward while maintaining existing local approval requirements.

The Bipartisan American Affordability and Jobs Act of 2026 (BAAJA) is a federal permitting reform proposal championed by U.S. Sen. Martin Heinrich of New Mexico. Heinrich helped develop the legislation with the goal of making federal permitting processes more efficient, predictable, and timely.

The proposal reflects growing concerns that lengthy federal reviews can delay construction, increase development costs, and slow infrastructure improvements needed to support housing and economic growth.

How Could This Affect Housing Development?

Housing affordability is influenced by more than the cost of purchasing a home. The time and expense required to develop land, install infrastructure, and complete construction can also affect the availability and price of housing.

Projects involving federal permits or approvals may encounter additional regulatory processes before construction can begin. These requirements can affect infrastructure improvements that support new residential development, including transportation, utilities, and other essential services.

By improving the predictability and efficiency of federal permitting, BAAJA could help qualifying projects move forward with fewer administrative delays.

Potential benefits include:

More predictable timelines: Helping developers and communities better anticipate federal approval schedules.

Reduced development uncertainty: Limiting delays that can increase project expenses.

Improved infrastructure delivery: Supporting timely completion of infrastructure needed for housing and economic development.

Greater housing opportunities: Helping remove certain federal obstacles that can slow projects supporting new housing.

What Would Remain Under Local Control?

An important distinction is that federal permitting reform would not eliminate local zoning, land-use, or building approval requirements.

Housing developments would still need to comply with applicable municipal and county regulations, including zoning ordinances, subdivision requirements, building codes, and other local development standards.

Additionally, projects that do not require federal permits or approvals may see little direct impact from the legislation.

BAAJA is intended to address federal permitting processes, not replace the authority of local governments to review and approve development within their jurisdictions.

Supporting Housing Affordability in New Mexico

As communities across New Mexico work to address housing supply and affordability, federal permitting reform represents one potential approach to reducing development barriers.

Sen. Heinrich has emphasized that more timely and predictable federal approvals can support job creation, infrastructure investment, and economic development.

For the real estate industry, efforts to reduce unnecessary delays may help create conditions that support additional housing construction. However, permitting reform alone will not resolve the broader challenges affecting housing affordability, including construction costs, labor availability, infrastructure capacity, and local development regulations.

As BAAJA moves through the legislative process, its potential impact will depend on the specific provisions adopted and how they are implemented.