The sweeping reconciliation bill recently passed by Congress and signed by President Donald Trump permanently increases the federal Low-Income Housing Tax Credit (LIHTC) by 12% starting in 2026 and lowers bond financing thresholds, marking the largest boost to affordable housing investment in decades. Housing advocates praise the legislation as transformative and responsible for creating millions of affordable homes, although they worry cuts to Medicaid and other social safety net programs within the bill could harm low-income families. Developers say the credits are essential to encouraging housing construction, in addition to broader financing and regulatory reforms.
Source: https://www.housingfinance.com/policy-legislation/house-passes-sweeping-bill-with-lihtc-provisions/
