The Trump administration is rolling back a major housing rule that would allow builders to build in federally subsidized areas.
The administration says the rule would create thousands of jobs, but the Trump administration says it will be temporary and will be rescinded when the new president takes office in January.
The Trump Administration will end the rule in a way that will protect the interests of construction workers and other homeowners, the U.S. Department of Housing and Urban Development (HUD) announced in a statement.
The rule, finalized in January, had an estimated impact on about 11,000 construction jobs, including 6,500 in the city of Richmond, Virginia.
The rules will take effect from Jan. 1, and the first $25 million in funds that HUD receives will be distributed to low-income homeowners.
The agency will make a list of all eligible projects and the federal funds that will be available, according to the statement.
If a project qualifies, the federal government will provide up to $1 million in funding for the project, HUD said.
Construction workers, who would have been eligible to build under the rule, will be able to apply for housing assistance and can choose to build on public lands.
Under the rule that HUD finalized last month, builders would only be allowed to build if the area was built to accommodate at least 80 percent of the city’s population and the project is on federal land.
This rule would allow for a more robust development of the economy, according the statement, because there would be more construction jobs.
The Department of Labor, which administers the rule as part of the Department of Agriculture’s Federal Employment Training Program, said the rule will be reinstated once the new administration takes office.
The new administration has promised to take action on housing issues.
On Jan. 25, President Donald Trump signed an executive order to roll back the rules.
It said the government will work with states to ease restrictions on new construction and to allow construction workers to build projects on public land.
Construction will continue in some areas of the country and the administration said it will seek to restore the rule to its original intent.