The "Appraisal Industry Improvement Act" aims to modernize appraisal practices for federally insured mortgages and strengthen the appraiser workforce. It amends the National Housing Act to permit State-licensed appraisers to conduct appraisals for FHA-insured mortgages, provided they meet specific criteria. These criteria include being licensed or certified in the state where the property is located, adhering to the Uniform Standards of Professional Appraisal Practice (USPAP) , and completing verifiable education on FHA appraisal requirements. The bill also addresses the appraiser workforce by integrating State credentialed trainee appraisers into the national registry and establishing an annual registry fee for them. It clarifies that certified appraisers may utilize the assistance of these trainees, fostering a pathway for new professionals. Additionally, the legislation empowers the Appraisal Subcommittee to make grants to State agencies for education and training activities, directly supporting appraiser industry workforce needs. To ensure flexibility and oversight, the bill allows the Appraisal Subcommittee to adjust annual registry fees for Appraisal Management Companies (AMCs) if current fees prove to be counterproductive. Finally, it expands the membership of the Appraisal Subcommittee to include representatives from the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture, and the Department of Housing and Urban Development, broadening its expertise and scope.