Sen. Bill Hagerty advances bill aimed at tightening eligibility rules for public housing and cutting federal funds to sanctuary cities

Sen. Bill Hagerty, R-Tenn., is pushing legislation intended to limit taxpayer-funded housing assistance for undocumented immigrants and to restrict federal community development grants to local governments that do not cooperate with federal immigration enforcement. In a report published Aug. 5, Fox News described the bill as aimed at requiring citizenship verification for public housing and preventing “sanctuary cities” from using certain federal funds.

According to Fox News, Hagerty’s measure targets two points of eligibility and funding. First, it would require citizenship verification as a condition for accessing public housing, a step that would shift verification rules from local screening practices toward a standardized citizenship check. The policy centerpiece is framed by the proposal’s supporters as a way to ensure public housing resources go to residents who meet eligibility requirements under federal law.

Second, Fox News reported that the bill would block sanctuary cities from receiving Community Development Block Grant, or CDBG, funding. CDBG is a federal formula grant program that supports local projects such as housing rehabilitation, public facilities, and community development activities. Under Hagerty’s proposal as described by Fox, jurisdictions labeled as “sanctuary” would be ineligible for the block grant if they do not comply with federal immigration enforcement expectations.

Fox News characterized Hagerty’s approach as addressing what he views as government spending that benefits people who are in the country illegally. In the report, Hagerty is quoted supporting the legislation on the grounds that taxpayer-funded programs must be tied to lawful status and that local governments should not be able to retain access to federal grant money while resisting federal immigration enforcement.

The bill’s practical effect, if it proceeds, would likely extend beyond public housing. By tying federal grant eligibility to immigration-related compliance, the proposal could affect local government planning for CDBG-funded projects, including infrastructure and housing-related improvements. For cities and counties that rely on CDBG dollars, changes to eligibility could shift budgets and timelines for grant-funded work.

Legal questions around such an approach would depend on how the measure is structured and what standards it uses to define noncompliance or “sanctuary” status. In general, Congress has broad authority over federal funding conditions, but disputes often arise over whether specific restrictions comply with constitutional limits and administrative feasibility, including how compliance would be verified and applied across different local jurisdictions.

Hagerty’s office has not been quoted in the Fox report with bill text, enactment details, or a specific legislative vehicle beyond describing the proposal’s core requirements. The next steps would include the bill moving through Senate committee consideration, where staff would typically refine definitions, compliance mechanisms, and reporting requirements, before any floor action.

If enacted, the citizenship verification requirement for public housing and the CDBG ineligibility condition for sanctuary cities as described by Fox would likely require coordination across federal agencies administering housing and community development funds, as well as local public housing authorities and recipients of federal grants. The timing and implementation timeline would depend on the bill’s effective date and any required agency rulemaking or guidance.