THE NEWS

Should You Keep Your Target-Date Funds In Retirement?

Authored by Javier Simon via The Epoch Times (emphasis ours),

Target-date funds (TDFs) can be effective retirement savings vehicles for many investors.
Target-date funds adjust risk over time, but their limited flexibility can make them less suitable for complex retirement plans. SsCreativeStudio/Shutterstock

TDFs are professionally managed portfolios often built with various mutual funds. They are designed to automatically adjust their asset allocation of stocks, bonds, cash and sometimes alternative investments to become more conservative as you reach the target date.

Over time, these funds reduce exposure to generally riskier assets like stocks and shift toward typically safer investments like bonds in order to mitigate risk and reduce volatility. It could allow the fund to focus more on stability and capital preservation as retirement nears.

To many retirees, this makes sense. By the time you reach retirement, you may prioritize income potential and reduced risk. By design, TDFs aim to provide this to investors.

But also within its inherent design, there may lie some flaws that could raise serious challenges in retirement. So let’s take a closer look.

May Become Too Aggressive or Too Conservative

By the time you reach the target date, your TDF may still be heavily exposed to stocks. At a glance, a 2030 TDF from a major provider is composed of about 62 percent stocks. This asset allocation may be too aggressive for some retirees. Their portfolio would likely take a major hit if a severe market downturn occurs during the early retirement.

This is known as sequence or returns risk. It could force retirees to sell investments at a loss. And that would not only lock in those losses, but it prevents those investments from growing when the market recovers.

But the opposite can happen too. A retiree with multiple sources of income, who prioritizes growth potential, could end up with an extremely conservative TDF upon retirement.

This is why it’s important to carefully analyze a TDF’s glide path. This is the planned change in asset allocation over time.

Moreover, it’s also important to understand whether your TDF is a “to” or “through” fund. “To” funds become most conservative at the target date. “Through funds” may continue to get more conservative beyond the target date.

So it’s key to make sure that the TDF’s glide path still aligns with your risk tolerance, investment goals and financial situation as you get closer to retirement.

Lack Asset-Allocation Flexibility

A TDF automatically rebalances its asset allocation over time. That’s very convenient for the set-it-and-forget investor and younger ones who may find it difficult to start saving for retirement in the first place.

After all, TDFs are often the qualified default investment alternative (QDIA) in many corporate 401(k) plans. This means they’d be automatically enrolled in a TDF that aligns with their potential retirement year if they don’t choose their own investment options.

Those just entering the workforce may find it suitable to stick with a TDF rather than taking the time to carefully choose and analyze different investment options to build a personalized portfolio.

And that may work in the beginning. But over time, your financial situation could get more complex.

You may need to tailor your asset allocation to align with factors like change in risk tolerance, other sources of income, and tax efficiency.

With a TDF, this is virtually impossible since the fund managers run the entire portfolio on behalf of potentially millions of investors with varying needs.

Lack of Withdraw Efficiency

A TDF generally limits you to proportional withdrawals from the different assets it holds.

So keeping your savings in a TDF may not fit well into dynamic strategies like the bucket approach. This involves strategically breaking down your retirement assets into three or more time-based buckets. The first one would hold generally safer and liquid assets like cash and cash equivalents. While the other buckets are filled with growth-oriented investments ranging from bonds to stocks and exchange-traded funds (ETFs). The idea here is to begin drawing from the first bucket during the first few years of retirement in order to give the other buckets more time to grow.

May Not Make Sense Once You Retire

TDFs were built for simplicity. And by the time you retire, your financial situation may be far more complex than when you started saving.

Your risk tolerance could be drastically different from what you were expecting. You may have other sources of income like multiple investment accounts, pensions, and Social Security benefits. So your risk tolerance may leave more appetite for growth.

In such situations, you may want to consider alternatives.

Moving Out of Your TDF

You can take the funds from a TDF and move it into a more personalized portfolio adhering to your risk tolerance and investment goals. You could consider a mix of low-cost ETFs, bond funds, Treasury securities, and alternative investments.

If your TDF is held in a 401(k), however, you may be limited to available investment options and restricted by plan rules. So it’s important to check in with your human resources department before you proceed.

The Bottom Line

A TDF could be the ultimate retirement fund for the set-it-and-forget investor, especially younger ones. But as you move closer to retirement, your financial situation and financial goals could change dramatically. This is why it may be suitable to eventually move out of a TDF and into a customizable portfolio that could align with your risk tolerance, investment goals and other variables in retirement. You can also work with a qualified financial adviser to come up with an individualized and comprehensive financial plan that may better suit your needs.

The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times and ZeroHedge do not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.

Tyler Durden
Tue, 04/14/2026 – 19:15

Ruby Rose finalized a police report against Katy Perry stemming from an alleged sexual assault which occurred more than two decades ago.Rose, 40, publicly made the claims against the “Firework” singer over the weekend in response to a Perry clip fawning over Justin Bieber’s Coachella performance.”As of this afternoon, I have finalized all of my reports,” Rose wrote on Threads. “This means I am no longer able to comment, repost, or talk publicly about any of those cases, or the individuals involved.”KATY PERRY FIGHTS BACK AGAINST RUBY ROSE’S ‘CATEGORICALLY FALSE’ SEXUAL ASSAULT ALLEGATIONS”It’s going to look like I am ignoring everything from supportive messages, to other people’s experiences, but I’m not,” the “Orange is the New Black” actress said.”This is a standard request from the police and in many ways, quite the relief.”She added, “I can start the healing process now. And temporary move forward. I love you all so much.”RUBY ROSE WAS FIRED FROM ‘BATWOMAN’ BECAUSE OF ‘MULTIPLE COMPLAINTS ABOUT WORKPLACE BEHAVIOR,’ WBTV SAYSThe “Wide Awake” singer appeared to send a message Tuesday on Instagram stories, and shared a clip of her song, “By the Grace of God,” with the message, “I love you.”Lyrics to the hit from her 2013 “Prism” album include, “It was not about me / Now I have to rise above / Let the universe call the bluff / Yeah the truth will set you free.”Over the weekend, the Australian actress accused Perry of sexual assault, claims which the “Dark Horse” singer strongly denied.”Katy Perry sexual assaulted me at spice market nightclub in Melbourne. Who gives a s— what she thinks,” she wrote on Threads.After a user asked her to expand on the claim, Rose wrote: “After it I threw up on her. I told the story publicly but changed it to be a ‘funny little drunk story’ because I didn’t know how else to handle it.”Later she agreed to help me get my US visa. So I kept it a secret. But I DID tell yall she wasn’t a good person. Instead I got attacked by… everyone.”LIKE WHAT YOU’RE READING? CLICK HERE FOR MORE ENTERTAINMENT NEWSA representative for Perry immediately shut down the “categorically false” claims.”The allegations being circulated on social media by Ruby Rose about Katy Perry are not only categorically false, they are dangerous, reckless lies,” a representative for Perry told Fox News Digital in a statement. “Ms. Rose has a well-documented history of making serious public allegations on social media against various individuals, claims that have repeatedly been denied by those named.”CLICK HERE TO SIGN UP FOR THE ENTERTAINMENT NEWSLETTERIn another post, Rose said it had taken her almost 20 years to come forward with the claims.”I was only in my early 20s. I’m now 40. It has taken almost 2 decades to say this publicly,” she wrote. “Though I am so grateful to have made it long enough to find my voice, it just shows how much of an impact trauma and sexual assault takes. Thank you for seeing me.”Rose also went on to detail the alleged incident and wrote that “as a woman, for a myriad of reasons, opening up about W on W [women-on-women] violence and sexual abuse, seems to be 100 times harder than speaking about the male predators, at least for me.”While Rose initially claimed she’s not interested in filing a report, she welcomed legal action from Perry.”[Katy] is more than welcome to sue me (she won’t, because it happened, I have photos and it was literally in public and witnessed by multiple people). Plus there is so much more that happened in the years leading up to her silly song she won’t want me discussing. The psychological manipulation was strong with that one,” she wrote.

Baltimore Orioles manager Craig Albernaz has seven fractures in his orbital area as well as a broken jaw after taking a foul ball to the face, but he remains in the dugout with his squad.However, Albernaz has one big change to his daily routine over the next month or so. He needs to eat baby food.The injury occurred on Monday night against the Arizona Diamondbacks, as the foul ball came whipping toward the Orioles’ dugout and hit Albernaz square on the right side of his face. But he was back at Camden Yards on Tuesday, less than 24 hours after suffering his multiple facial injuries.CLICK HERE FOR MORE SPORTS COVERAGE ON FOXNEWS.COMReports from Baltimore state that he has a visible bruise on the right side of his face, and that he will need to consume baby food for the next six weeks as his face heals.”This is what we’re here for,” Albernaz said to reporters, per the Baltimore Banner. “We’re here for the players. We have a game. I’m physically able to be here, so let’s go.… If my jaw was wired shut, I’d still be here.”ORIOLES MANAGER CRAIG ALBERNAZ TAKES LINE DRIVE TO FACE IN TERRIFYING SCENEAlbernaz said he felt “pretty good” considering the circumstances from Monday night’s foul ball off the bat of one of his own, Jeremiah Jackson.”Ball hit me pretty flush in the cheek, but I feel good,” he added. “Luckily, no surgery. I think all in all, it was at least seven fractures in my cheek area, orbital, and then a broken jaw. But luckily, it doesn’t have to be wired. No surgery. I just have to eat baby food for six weeks.”Albernaz, like many managers, was standing at the top of the dugout steps when Jackson was late to a pitch that shot immediately toward his teammates and coaches. It’s an unfortunate situation for Albernaz, but the first-time MLB manager is clearly showing his grit and resilience for his squad.They also showed it for him on Monday night, as they were trailing at that point in the game. However, the Orioles rallied to win the game 9-7.A lot of that had to do with Jackson, who bashed two home runs, including a grand slam in the victory.”I hit, and then I kind of saw Alby holding his face,” Jackson told reporters. “My heart kind of dropped. I was able to see him afterward and see he was doing OK.… Knowing he was OK helped. It made me feel a little bit better. I’m just happy he’s doing OK and in good spirits.”The Orioles’ win keeps them tied with the New York Yankees atop the AL East standings at 9-7.Albernaz will continue to lead the way in the dugout moving forward, even if his diet does have to change.Follow Fox News Digital’s sports coverage on X and subscribe to the Fox News Sports Huddle newsletter.

S. Korea ranked first in the world for AI patent filings per capita in 2024, underscoring the country’s high concentration of AI innovation

Prince Harry and Meghan Markle have landed in Australia — trading royal luxury for what appears to be a more low-key entrance.The Duke and Duchess of Sussex touched down in Melbourne on April 14, marking their first trip to the country in more than seven years.Unlike their 2018 royal tour — when they arrived aboard a Qantas private suite — the couple opted for business class on a commercial flight from Los Angeles, catching fellow passengers off guard, according to People.PRINCE HARRY, MEGHAN MARKLE’S HOLLYWOOD DREAMS HIT WALL AS EXPERT WARNS OF ‘TOXIC BRAND’ STIGMA”In 2018 Harry and Meghan had a very successful tour of Australia, in fact more popular than William and Kate,” Royal Broadcaster Ian Pelham Turner told Fox News Digital. “Travelling on a commercial flight I feel was a very good move on their part as they continue to be seen as part of the people rather than in some privileged position and that will get noticed by the Australian press too. They have several engagements and will feel very at home in the country.”An Australian passenger who spotted only Harry remarked, “I’ve never seen anyone step off a flight looking so refreshed.””It wasn’t until we got off the plane that we realized it was them,” one American traveler told The Age.The more subdued arrival extended beyond the flight.Meghan, 44, and Harry, 41, skipped a traditional airport photo op, instead departing in a convoy of vehicles without stopping to pose for the press.”With their failed deals and lack of large income stream, no doubt they are financially strapped,” British royals expert, Hilary Fordwich told Fox News Digital. “They have huge overhead costs. What with their 16 bedroom home in Montecito security, etc. But this was an extremely good move. It was received well by the public, obviously far better than flying private and their positive interaction with the public served them well. Makes one wonder if it was indeed it was deliberately done to garner public support? If it was, it certainly was a successful strategy.”Fox News Digital has reached out to the Sussexes for comment.MEGHAN MARKLE’S HOLLYWOOD COMEBACK MAY BACKFIRE AS ‘VANITY’ MOVE SPARKS PALACE SCRUTINY: EXPERTSIt’s a stark contrast to October 2018, when the pair arrived hand in hand for a royal tour — stepping off a luxury Qantas private suite and announcing Meghan’s pregnancy with Archie shortly after. Two years later, they stepped back from their royal duties.Shortly after landing, they visited the Royal Children’s Hospital in Melbourne, where they were seen walking hand in hand through the halls, stopping to greet patients, families and staff. Meghan wore a dark navy dress paired with black Dior heels, while Harry coordinated in a navy suit, white shirt and black shoes.The visit held personal significance. More than four decades ago, Harry’s parents — Princess Diana and then Prince Charles — visited the same hospital during their 1985 Australian tour.”Look around, and you can see the crowds of people, the smiles on their faces and what it means to them. Everyone is absolutely delighted,” Professor Christine Kilpatrick AO, board chair of The Royal Children’s Hospital, said, according to People.”You can’t measure the morale boost, but it is palpable,” she added. “Many of these patients have been here for quite some time and are often very frequent visitors to the hospital. A joy like this is wonderful for them.”When asked what he was most looking forward to during the trip, Harry kept it simple: “Everything!”The Sussexes continued their engagements later that day, meeting veteran families at the Australian National Veterans’ Art Museum. Meghan also made a solo visit to the Homeless Services for Women Centre, where she donned an apron and served food.CLICK HERE TO SIGN UP FOR THE ENTERTAINMENT NEWSLETTERTheir current four-day itinerary includes stops in Melbourne, Sydney and Canberra, blending charitable work, speaking engagements and commercial appearances.Harry is set to serve as a keynote speaker at the InterEdge Psychosocial Safety Summit in Melbourne, where he is expected to address workplace mental health and psychological safety. Meanwhile, Meghan will headline a luxury women’s retreat in Sydney, billed as a “girls’ weekend like no other.”LIKE WHAT YOU’RE READING? CLICK HERE FOR MORE ENTERTAINMENT NEWSThe retreat, hosted at the InterContinental Sydney Coogee Beach, has already drawn scrutiny over its pricing. Tickets range from $1,860 for standard access to $2,250 for VIP packages, which include a gala dinner described as an “in-person conversation” with the duchess, along with a group photo and exclusive perks.Their visit follows a series of international trips tied to philanthropic efforts, including travel to Jordan earlier this year in partnership with the World Health Organization, as well as visits to Nigeria and Colombia in 2024.Despite being privately funded, the Australia trip has sparked debate. Local authorities are expected to provide security for public events, with some costs potentially falling to taxpayers — a point of contention among critics.Notably absent from the trip are the couple’s children, Archie, 6, and Lilibet, 4.

Sergio Garcia posted an apology to social media on Tuesday for taking his anger out on the second tee box during the final round of the Masters.Garcia, 46, hit a shot into the bunker on the second hole and took out his anger on the box, shattering his driver after slamming it into the turf twice and taking chunks out of the ground. He then took another swing at a table with a green cooler.The 2017 Masters champion said he regrets the way he acted.CLICK HERE FOR MORE SPORTS COVERAGE ON FOXNEWS.COM”I want to apologize for my actions on Sunday at The Masters tournament. I respect and value everything that The Masters and Augusta National Golf Club is to Golf. I regret the way I acted and it has no place in our game. It doesn’t reflect the respect and appreciation I have for The Masters, the patrons, tournament officials and golf fans around the world,” Garcia posted to X.The apology comes after he was highly criticized for his actions, including an ESPN star calling for him to be banned from the tournament for his actions.CALLAWAY LAUNCHES LIMITED-EDITION USA 250 GOLF COLLECTION HONORING AMERICA’S 250TH ANNIVERSARYAccording to club officials Garcia was issued a code of conduct warning on the fourth tee by Geoff Yang, the chairman of the competitions committee. Garcia, who competes in LIV Golf, finished 8 over for the tournament, finishing 52nd out of 54 players who made the cut.Since winning the Masters, Garcia has struggled mightily in majors. He has not finished in the top 10 in the 29 majors since winning at Augusta in 2017, and has missed the cut six of eight times since his victory.Garcia’s Masters blowup was not his first at a tournament, as he was disqualified at the Saudi International in 2019 for damaging greens.Last year during the final round of the Open Championship, he snapped his driver after slamming it into the ground on the second hole, playing 16 holes without a driver.Fox News’ Ryan Morik and The Associated Press contributed to this report.Follow Fox News Digital’s sports coverage on X, and subscribe to the Fox News Sports Huddle newsletter.

Tax refunds are up over 10 percent this year, on average, as tens of millions of Americans take advantage of the “No Tax on Tips” and “No Tax on Overtime” provisions, among others, in the “Big Beautiful Bill.”
“As of March 27, IRS filing season statistics show the agency had issued nearly 63 million refunds, with a cumulative total of $221.7 billion refunded. The cumulative refund amount was up 13.6% over 2025, while the average refund amount was up 11.1% over last year. On average, taxpayers are receiving $3,521 back this year,” Reuters reported.
The White House noted that Americans earning $15,000 to $80,000 per year are receiving a 15 percent tax cut on average.
More than 5.5 million Americans have claimed “No Tax on Tips” so far, with an average deduction of over $7,100, while over 25 million have claimed “No Tax on Overtime,” with an average deduction of over $3,000.
Raj Aman, who runs a bar attached to a golf course in New York, told the New York Post that “No Tax on Tips” has made it far easier to find employees.
“Three years ago, I couldn’t get any servers or bartenders,” Aman explained. “This year, we have people calling us that said, ‘Do you have a job opening?’ And we’ve already, for the start of the season of the golf course, we’ve already interviewed over 85 people from zero.”
“So basically, everybody wants their tips not being taxed,” Aman said. “They’re making a lot more money than they would ever imagine.”
Claire Kerrigan, a bartender at AJ’s Bar and Grill, called the tax cuts “great,” explaining that she did not have to worry about putting a certain amount of her tip income aside to cover taxes, but could spend it.
“I’m not going to be putting it aside, like, ‘Oh, I have to pay my property taxes with it,’ or, something like that. It’s really, truly a big help,” Kerrigan said.
Sergio Esposito, former president of the Yorktown Chamber of Commerce and current town councilman, told the New York Post, “There’s going to be more money out there. People are going to be out there. They’re going to be spending more. They might go out to dinner an extra time or two. They might go out and buy something that they ordinarily couldn’t afford.”
To highlight the benefit that the “No Tax on Tips” policy was having for taxpayers, Trump received a DoorDash delivery at the White House from driver Sharon Simmons.
She delivered McDonald’s to the president at the Oval Office. Simmons earned $11,000 in tips last year, all of which was tax-free, the White House said.

The White House just released more details on the DoorDash Grandma, who just delivered an order of McDONALD’S to President Trump in the Oval Office
Sharon Simmons from Arkansas:
– Is grandma of 10
– Started dashing in 2022
– Completed 14,000 DELIVERIES
– Has saved $11,000 in… pic.twitter.com/bmaK67SIGv
— Nick Sortor (@nicksortor) April 13, 2026

The IRS pointed out that the maximum deduction for “No Tax on Tips” is $25,000, and for “No Tax on Overtime,” the maximum amount is $12,500, or $25,000 for joint filers.
The deduction phases out for taxpayers with income over $150,000, or $300,000 for joint filers.
Other noteworthy deductions contained in the “Big Beautiful Bill” are “No Tax on Car Loan Interest” for American-made cars, up to $10,000 per year.
Also, the standard tax deduction increased by $6,000 — $12,000 for joint filers — for individuals 65 and over, meaning essentially “No Tax on Social Security” income. The deduction phases out for those earning over $75,000, or $150,000 for joint filers.
This article appeared originally on The Western Journal.
The post Tax Refunds Surge as Millions of Americans Take Advantage of Trump Reforms Like No Tax on Tips and Overtime appeared first on The Gateway Pundit.

The Los Angeles District Attorney has launched an investigation into Eric Swalwell over allegations of sexual assault.
The LA DA, Nathan Hochman, confirmed the investigation to The Hill after a fifth Swalwell accuser came forward with shocking allegations during a press conference in Beverly Hills on Tuesday morning.
The Hill reported:
Former Rep. Eric Swalwell (D-Calif.) is under investigation in Los Angeles over allegations of sexual misconduct, the county’s district attorney confirmed to The Hill.
Los Angeles District Attorney Nathan Hochman said in a statement that his office has assigned its Sex Crimes Division to work closely with law enforcement partners “as this investigation unfolds.”
“When and if a case is presented, seasoned prosecutors will review the facts and evidence to determine whether there is sufficient evidence for charges to be filed,” he said. “When a filing decision is made, we will ensure the public is made aware.”
Hochman’s statement came in response to an inquiry from The Hill regarding a new allegation of sexual assault made against Swalwell.
Another Swalwell accuser came forward and spoke at press conference in Beverly Hills on Tuesday morning.
The 5th Swalwell accuser to come forward, Lonna Drews, is represented by attorney Lisa Bloom.
“I represent a brave Eric Swalwell accuser. Her disturbing story is forthcoming. We call upon him to resign from Congress and the governor’s race, and we will cooperate with authorities in their investigation,” Lisa Bloom (Gloria Allred’s daughter) said on Monday evening before the press conference.
Lisa Bloom also disclosed that three other women have contacted her in the last 24 hours with accusations against Eric Swalwell.
Lonna Drews recounted how Eric Swalwell drugged and raped her in 2018 and choked her to the point of unconsciousness in a West Hollywood hotel room.
“In 2018, while I was living and working as a model in Beverly Hills, and I also owned a fashion software company, I had contact with Eric Swalwell on three separate occasions,” the alleged sexual assault victim, Lonna Drews, said.
“I knew he was married at the time and that his wife was pregnant. He was my friend. On the third occasion, I believe he drugged my drink,” she said.
Lonna Drews said Swalwell drugged her drink and violently raped her.
“He raped me, and he choked me. And while he was choking me, I lost consciousness. And I thought I died. I did not consent to any sexual activity,” she said threw tears.
“I would never have engaged in a consensual sexual encounter with Eric Swalwell,” she said.
Swalwell is also under investigation by the Manhattan District Attorney’s Office after a former staffer came forward to CNN and said the California Democrat raped her in 2024.
The Swalwell staffer said she was sexually assaulted by Swalwell in 2019
The staffer also said Swalwell raped her years later in 2024 after she left his employment.
The unidentified former female staffer sat down with CNN and recounted some of the horrific details about the alleged rape that occurred in 2024.
“I went to the bathroom, and I don’t remember anything after that,” she said, adding that she “remembered the next day.”
“I can see flashes of that evening of him on top of me, me pushing him off, him grabbing me. It was a lot more aggressive. It was aggressive,” she said about the 2024 assault.
The post Los Angeles DA Launches Investigation Into Swalwell After Fifth Accuser Comes Forward with Shocking Allegations of Rape appeared first on The Gateway Pundit.

A bipartisan effort to reduce the stigma around pilots who seek mental‑health care cleared a key hurdle Tuesday in a Senate committee.

For A Housing Fix, Look To The Laboratories We Know As States

Authored by Edward Pinto via RealClearMarkets,

Federal housing policy is afflicted by several shortcomings—it is expensive, outdated, and inflexible. The states, free from these restrictions, have begun experimenting with tailored approaches. Congress should take note.

In 1932 Justice Brandeis observed that “one of the happy incidents of the federal system that a single courageous State may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.” By its nature, the states as laboratories do not suffer from the shortcomings that afflict Congress’s efforts. 

Federal policy is unsuccessful because it is top-down, one-size fits all. Once Congress passes legislation, it tends not revisit it for decades. And, it is incredibly expensive. A recent subsidized development in a suburb of Los Angeles cost $159 million—nearly $800,000 per unit—to develop a 200-unit residential complex, with $117 million in direct subsidies and $31 million in subsidized financing.  The agency responsible called it a typical cost per unit for Los Angeles County. 

The states are working on a simpler solution: allow owners and builders to build housing that is more affordable. Research has shown that policies allowing smaller lots increase both supply and improve affordability. They reduce land costs, result in smaller, but still family-sized homes, and allow townhomes, which cost less to build than similarly sized detached homes.   

The good news is that dozens of states are considering legislation that does just that. In recent years, California, Florida, Maine, Massachusetts, Montana, Oregon, Rhode Island Texas, Vermont, and Washington have already implemented experiments in giving markets the flexibility to build lower cost, starter homes. And the process of getting it right is ongoing. Since its initial passage in 2023, the Florida legislature has revisited its Live Local Act three times to address shortcomings or expand applicability. 

This stream of experimentation turned into a torrent in 2026, with twenty-five legislatures considering at least 41 bills. Idaho and Washington have already seen two bills enacted into law, while Florida, Indiana, and Maryland tried, but failed on three more. While each of these efforts tailors solutions to each state’s needs, they share three common themes: lot size flexibilities in new residential subdivisions, home dwelling type and lot split flexibilities on existing lots, residential overlays in commercial zones. Flexibilities that follow the KISS principle (keep it short and simple) are best positioned to succeed, thereby promoting a virtuous cycle of continuous improvement.

Congress should embrace this state-led trend by providing financial incentives to states that pay for actual results. Congress could pay states incentives based on the number of additional small lot homes built in new residential subdivisions, or additional homes using dwelling type and lot split flexibilities on existing lots, or extra homes built because of new residential overlays in commercial zones.

Today, the federal government spends about $100 billion per year on the Department of Housing and Urban Development and various housing subsidies. Less than ten percent of this total—about $9 billion per year—would result in 240,000 additional homes for a one-time payment per added home of less than $40,000. Consider that President Trump recently announced his 2027 HUD budget, which calls for a $10.7 billion reduction.

Congress should seize the opportunity to replace ineffective policies with performance-based incentive payments to the states.

Edward J. Pinto is a Resident Fellow at the American Enterprise Institute, and Co-Director of its Housing Center. 

Tyler Durden
Tue, 04/14/2026 – 18:25