The Biden proposal would set up a $5 billion fund for local governments to compete for grants to pay for new schools, roads or bridges if they agreed to loosen zoning rules.
“This is a new approach that is purely carrot, no stick,” said a White House official on condition of anonymity…
Trump himself explicitly campaigned against the idea last year, warning “suburban housewives” that crime would spike and home values drop if zoning rules were relaxed.
Housing experts praised Biden’s proposal, but said it may do little to influence affluent communities that have the tightest zoning laws, which have little need for federal assistance.
It will be interesting to see which communities would accept the carrot and loosen zoning. My guess: suburban communities that are already in the midst of demographic and community change and looking for funds that could help point the community in a particular direction.