NCSHA Blogs
House Passes Reconciliation Bill with Permanent Housing Credit Volume Cap Increase, 25 Percent Bond Financing Threshold
The House this afternoon passed the budget reconciliation bill, the same version the Senate passed earlier this week. President Trump plans to sign the bill into law tomorrow. The vote for the bill was 218 – 214, with all Republicans but Brian Fitzpatrick (PA) and Thomas Massie (KY) supporting it and all Democrats opposed.
Annual JCHS Report Finds Housing Affordability Challenges Persist; Issues Strong Call for Action
The Harvard Joint Center for Housing Studies (JCHS) earlier today released its annual State of the Nation’s Housing Report for 2025. The report, of which NCSHA is a sponsor, states clearly that housing affordability in the United States “remains in crisis.” The report documents how, despite slight increases in inventories of for-ownership and rental housing, housing costs still increased and remained unaffordable for many working families. JCHS calls on federal, state, and local government leaders, as well as the private sector, to explore solutions to address the affordable housing shortage.
House Appropriations Committee Approves FY26 USDA Appropriations Bill
On Monday, the House Appropriations Committee voted to advance the FY26 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies bill 35–27 in a party-line vote. The debate around the bill was contentious, requiring three separate committee meetings over the course of two weeks. Dozens of amendments offered by Democrats to supplement the bill went unadopted, with only three amendments added to the bill that advanced out of the subcommittee earlier this month.
Senate Tax Bill Makes Permanent Housing Credit Volume Cap Increase, 25 Percent Bond Financing Threshold
Late yesterday afternoon, Senate Finance Committee Chairman Mike Crapo (R-ID) released the much-anticipated text of the tax and Medicaid portion of the Senate’s reconciliation bill, with significant differences from the House-passed version of the One Big Beautiful Bill Act. Like the House bill, the Senate text includes a major expansion of Low-Income Housing Tax Credit (Housing Credit) resources, providing a permanent 12 percent increase in Housing Credit authority for the 9 percent program and permanently lowering the bond financing test from 50 to 25 percent. The House bill would increase Housing Credit authority by 12.5 percent and lower the bond financing test to 25 percent, but in both instances those changes would be applicable for just four years. The Senate bill does not include new basis boosts for properties in rural and Native American communities, as is included in the House-passed bill.
White House Releases Additional FY26 Budget Documents
The Trump Administration has released additional supporting materials for its Fiscal Year 2026 (FY26) Budget Request. These new materials, including an appendix from the Office of Management and Budget and “Congressional Justifications” for individual agencies such as the U.S. Departments of Housing and Urban Development and Agriculture, expand on the limited information provided earlier in the so-called “skinny” budget. However, much information still has not been released, including descriptions of tax proposals and potential housing finance reform ideas. Overall, the changes proposed in the FY26 budget envision a dramatic reduction in federal support for affordable housing and a major restructuring of how the remaining federal assistance is delivered.
House-Passed Reconciliation Bill Provides Largest Housing Credit Expansion in Quarter Century
This morning, the House passed the 2025 reconciliation legislation, titled the “One Big Beautiful Bill Act,” by a 215 – 214 vote, sending the bill to the Senate, which will consider it after it returns from the Memorial Day recess. The bill represents the largest increase in Housing Credit resources since Congress raised the caps on Housing Credits and Private Activity Bonds and indexed the caps for inflation 25 years ago.
House Tax Bill Would Expand Housing Credit, Lower Bond Financing Test, Facilitate Production in Rural and Native American Areas
This afternoon, the House Ways and Means Committee released text of the tax portion of the major 2025 reconciliation bill Republicans are drafting to enact much of President Trump’s agenda, including extensions of the Tax Cuts and Jobs Act provisions set to expire at the end of 2025, initially enacted in the president’s first term in office. In a major victory for NCSHA and our affordable housing advocacy partners, the bill includes a major expansion of the Low-Income Housing Tax Credit, incorporating several of the key provisions designed to increase the supply of rental housing from the Affordable Housing Credit Improvement Act.
Trump Administration Releases “Skinny” FY26 Budget Proposal
The Trump Administration has released a preliminary version of the President’s Fiscal Year 2026 Budget Request. Information in the materials provided so far is extremely limited, but the budget proposes an overwhelming reduction in federal resources supporting affordable housing. This blog will be updated when additional supporting materials become available.
Senators Cortez Masto and Cassidy Reintroduce Bipartisan Legislation to Strengthen MRBs and MCCs
Senators Catherine Cortez Masto (D-NV) and Bill Cassidy (R-LA) earlier today introduced the Affordable Housing Bond Enhancement Act. This legislation, which NCSHA has worked on closely with the senators’ offices, will expand the state housing finance agencies’ ability to provide affordable homeownership and rental housing and use tax-exempt bond authority more efficiently by strengthening the Mortgage Revenue Bond and Mortgage Credit Certificate programs.
Neighborhood Homes Investment Act Introduced in House
Congressmen Mike Kelly (R-PA) and John Larson (D-CT) today introduced the Neighborhood Homes Investment Act of 2025 (NHIA). The legislation, one of NCSHA’s top policy priorities, seeks to increase the supply of affordable for-sale housing through a new tax credit.
