It's Fox News, so I'll take it with a grain of salt. Their bias is thicker than obese children drinking molasses. But you knew that, right?
Nevertheless, this sounds on par with what the Obama administration goes for: majority rule. That's fine for the majority. It might be conspiracy theorist bullshit now, but let's be fair: Chicago, NYC, Dallas, Cleveland, San Francisco and all the big cities in the US see a hell of a lot more construction, demolition, DoT projects, contracts, et cetera. How is this any different from the way that it is now? A majority of people don't live in suburbs. They live in big cities already.
This would, to any practical event and most probable outcome, stimulate private enterprise to pick up where federal funding takes off, making suburbs potentially richer than they've ever been. Gated communities, subdivisions, your typical white picket fence American dream scenarios are going to be that much better by reallocation of the federal interest. In rural counties, the federal government hardly intervenes (save for your everyday natural disaster via FEMA, which is notorious for their too little, too late bullshit with insurance micromanagement for damage incurred, not to mention how they aren't the Red Cross no matter how hard they try) and the state/local caches are tapped for just this sort of affair if private interests aren't an option. Most people where I live stake their claim in business or residence without the intervention of a federal loan, not to mention the better part of suburban America which by and large isn't part of the $20k and under bracket. This invites a market that's existed since the Industrial Revolution to do what it's done with or without the feds behind them: cultivate their part of commercial, residential or industrial America.
I dare say they're not looking at the potential of this legislation. Make the cities green and make the suburbs vacant? Sounds like the perfect scheme to get rid of your neighbors and expand your real estate at the behest of infallible Mother Nature. Nice try, though.