S.4240 - The American Homes First Act
S.4240 was introduced March 26, 2026 by Senator Catherine Cortez Masto (D-NV). It is currently pending before the Senate Foreign Relations, and has 0 co-sponsors
Related legislation:
Bill Summary: The American Homes First Act directs a transfer of previously appropriated funds to the Department of State and US Foreign Assistance to support the Low-Income Home Energy Assistance Program (LIHEAP). The bill prohibits the use of funds from Full-Year Continuing Appropriation and Extensions Act, 2025 and the National Security, Department of State and Related Programs Appropriations Act, 2026 to be made available to the “Board of Peace,” an organization designated as a public international organization by President Trump through Executive Order 14375, and instead mandates that $1 billion of those funds be transferred to the Department of Health and Human Services. These transferred funds are to be used by the Secretary of Health and Human Services as if they were originally appropriated for LIHEAP under the Low-Income Home Energy Assistance Act of 1981.
Context: LIHEAP is a critical domestic safety net program that helps low-income Americans afford home heating and cooling costs, and additional funding for it addresses a genuine and pressing need. However, the mechanism by which this bill funds LIHEAP, by redirecting appropriations away from foreign assistance, carries significant potential humanitarian costs for Palestinians in Gaza.
In March, 2026, the State Department consulted with Congress regarding the potential obligation of $1.25B in funding, comprising $1B in humanitarian assistance and disaster relief funds, $200M in Peacekeeping Operation (PKO) funds, and $50M for the “Board of Peace” operating costs. The “Board of Peace” is an institution whose founding charter and governance structure lack independent oversight, transparency, or accountability mechanisms, and Congress should not authorize the $50M in Board operating costs absent clarity on those aspects. However, the lion’s share of this funding, $1B, is potentially for humanitarian assistance, and will flow through World Bank mechanisms. The challenge here is that the “Board of Peace” would still retain oversight and direction over these funds, meaning that they could be used, among other purposes, to fund the construction of apartments or surveillance cities in territory under IDF control, rather than being used for true humanitarian purposes. However, it is also possible that some of the funds will genuinely be provided via UN mechanisms such as UNHCR for humanitarian relief in Gaza. While this remains an open question, the redirection of these funds to LIHEAP eliminates even the possibility of that assistance reaching one of the world's worst humanitarian crises.
American Values Analysis: Supporting American citizens in need with energy credits is a worthy purpose for U.S. funding. However, providing critically needed humanitarian support to a population decimated by U.S. weapons is also a moral imperative. It is unfortunate that this Bill pits the former against the latter.
American Interest Analysis: While the “Board of Peace,” with its lack of transparency and accountability should forestall it from receiving any direct operational funding at this time, the main consequence of The American Homes First Act would be the preemptive removal of $1 billion from potential humanitarian support to Palestinians in Gaza. That outcome deepens the perception that the United States will fully withdraw from meaningful engagement with the humanitarian crisis in Gaza, with long-term costs to U.S. credibility and American interests.
A New Policy’s Recommendation: MONITORING
A New Policy will be monitoring the American Homes First Act. While the bill's support for LIHEAP reflects a genuine domestic need, the mechanism it employs, redirecting funds that could flow through accountable UN mechanisms for Gaza's humanitarian relief and reconstruction, carries avoidable costs to civilians in need in Gaza and U.S. credibility if these funds are used correctly and as intended. If it emerges that the $1B in humanitarian funds for Gaza will not be used appropriately, A New Policy will support this Bill; if it turns out that a significant portion of the funding will be used to aid Palestinians in Gaza who are in severe need, A New Policy will oppose it.
For more information please contact: Josh Paul, (202) 770-0055, info@anewpolicy.org
