RESTORE Third Spaces Act of 2026
HB9032, the RESTORE Third Spaces Act of 2026, would direct the Secretary of Commerce to create a pilot grant program to renovate and develop “third spaces” — public or community-oriented places that are not primarily homes or workplaces and that support social, cultural, and economic life. The bill frames third spaces as important for civic participation, mental health, social trust, local entrepreneurship, and community resilience, and it specifically ties the loss of such spaces to disinvestment, segregation, gentrification, and social isolation.
The program would be administered by the Department of Commerce in consultation with the Departments of Housing and Urban Development and Health and Human Services. Eligible applicants would include local governments, nonprofits, federally recognized tribes, Native Hawaiian organizations, public libraries, community colleges, and certain partnerships. Grants could be used for planning, community engagement, feasibility studies, pre-development work, and construction costs. Applications would need to document community history and inequities, explain how residents will be involved in design, and show how the project will preserve local culture, history, and identity while avoiding worsening existing inequities.
The bill would create a new federal grant program and associated reporting regime, but it would not directly amend existing state law. It authorizes up to $200 million in appropriations, caps federal administrative costs at 5 percent, requires at least 60 percent of annual grant funding to go to low-income and underserved communities, and requires grantees to keep renovated or developed third spaces free or low-cost to the public, with limited ability to charge businesses rent. It also establishes a three-year pilot period, possible two-year extension, and later reporting to Congress on attendance, business formation, affordability, belonging, and social and economic impacts. The measure would affect state and local governments, nonprofits, libraries, colleges, tribes, and community-based entities that seek federal support for community facilities and public gathering spaces.
No committee transcript or vote data is provided, so there is no recorded floor or committee sentiment to assess. Based on the bill text alone, the measure is presented in strongly supportive terms, emphasizing equity, inclusion, social cohesion, and economic development. Its findings suggest a policy rationale centered on restoring community life and testing whether public investment in shared spaces can reduce isolation and strengthen local economies.
The main points of potential contention are likely to be the federal role in funding and shaping local community spaces, the $200 million authorization, and the bill’s equity-focused allocation rules. Some may question whether Commerce is the right lead agency for what is partly a housing, public health, and community development initiative, while others may object to the requirement that 60 percent of funds go to low-income and underserved communities. There could also be debate over the bill’s broad definition of “third space,” the requirement to preserve local culture and avoid exacerbating inequities, and whether the program’s success metrics—such as belonging and social isolation—are sufficiently objective or measurable.