PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Subcommittee on Economic Opportunity.
Congressional Research Service
Version 00 · Introduced in House · Mar 11, 2025
American Housing and Economic Mobility Act of 2025
This bill addresses housing affordability and availability through grants, housing programs, and oversight of financial institutions. The bill also makes certain changes to the estate tax, such as by generally increasing the rate.
The Department of Housing and Urban Development shall provide grants to (1) state, local, and tribal governments to remove barriers to building affordable units, (2) states to assist borrowers who have negative equity in their homes, (3) state housing finance agencies to support construction of affordable rental housing and prevent tenant displacement and harassment, and (4) eligible individuals (generally, lower income individuals who are first generation homebuyers) to help them purchase their first homes.
Showing the opening paragraphs of the official summary.
The bill establishes and provides funding for the first-time homeowner grant program and the affordable rental housing construction program, and it also funds existing rural housing programs.
The bill also requires financial regulators to generally assess the effectiveness of financial institutions in meeting the credit and lending needs of their communities, particularly of underserved populations.
The bill also expands fair housing protections to prohibit discrimination based on sexual orientation, gender identity, marital status, source of income, veteran status, or an individual's perceived membership in a protected class (e.g., an individual's perceived race or sex).
Additionally, the bill modifies the estate tax in various ways, including by reducing the number of brackets to three, increasing the tax rates, and reducing the basic exemption amount. The bill also places additional taxes on high-income estates and trusts.
People & committees
Rep. Cleaver, Emanuel [D-MO-5] · D–MO
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the Subcommittee on Economic Opportunity.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans' Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans' Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans' Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans' Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Jan 28, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-03-11 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This proposal would expand federal housing funding and offer down-payment grants to eligible first-time, first-generation homebuyers. It would also change rules for mortgage sales and financial institutions, broaden housing discrimination protections, and require more accessible homes in covered projects. A separate tax title would change taxes on estates, gifts, and trusts. These are proposed changes; the supplied history does not establish enactment.
There is authorized to be appropriated to the Housing Trust Fund $48,000,000,000 for each of fiscal years 2025 through 2034.
The term eligible resident means an individual who— (A) is a first-time homebuyer; (B) is a first-generation homebuyer; and (C) has an income that is less than— (i) 120 percent of the area median income; or (ii) in the case of a homebuyer acquiring a property for use as a principal residence that is located in a high-cost area, as determined by the Secretary, 140 percent of the area median income.
Each purchaser of a covered mortgage shall offer the borrower on the covered mortgage loss mitigation options that allow for payment reduction at least as great as would be available to the borrower if the loan had not been sold.
Assess the record of the institution in meeting the credit and other financial needs of its entire community, in particular low- and moderate-income people and communities, and other distressed or underserved communities, and other underserved populations consistent with the safe and sound operation of the institution.
by striking sex, each place that term appears and inserting sex (including sexual orientation and gender identity), marital status, source of income, veteran status,
the number of dwelling units required to be accessible under those sections is twice the number that would otherwise be required to be accessible under those sections.
The amendments made by this section shall apply to estates of decedents dying, and generation-skipping transfers and gifts made, after the date of the enactment of this Act.
In the case of an estate or trust, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the sum of—
Source snapshot updated 2026-01-28T19:46:34Z. 2025-03-27: Referred to the Subcommittee on Economic Opportunity.
Section 101 would require the Department of Housing and Urban Development (HUD) to establish competitive grants within one year of enactment for states, local governments, and Indian tribes undertaking housing-supply reforms. Qualifying initiatives could include easier zoning approvals, denser development, accessory homes, and tenant protections. Changes to the listed labor protections would not qualify.
The term eligible entity means— (A) a State; (B) a unit of general local government; or (C) an Indian tribe.
Not later than 1 year after the date of enactment of this Act, the Secretary shall establish a program to award grants on a competitive basis to eligible entities to— (1) reform local land use restrictions to bring down the costs of producing affordable housing; and (2) remove unnecessary barriers to building affordable units in their communities.
shall submit to the Secretary an application that demonstrates that the eligible entity has carried out, or is in the process of carrying out, initiatives that facilitate the expansion of the supply of well-located affordable housing.
establishing by-right development, which allows jurisdictions to administratively approve new developments that are consistent with their zoning code
revising minimum lot size requirements and bans or limits on multifamily construction to allow for denser and more affordable development
(viii) allowing accessory dwelling units; (ix) using local tax incentives to promote development of affordable housing; and (x) implementing measures that protect tenants from harassment and displacement
do not include activities that alter ordinances that govern wage and hour laws, family and medical leave laws, health and safety requirements, prevailing wage laws, or protections for workers' health and safety, anti-discrimination, and right to organize.
Section 101 grants could fund activities under the referenced community-development and transportation programs, as well as improvements to public school and college facilities. Covered construction workers would have to receive at least locally prevailing wages. The section would authorize $2 billion annually for fiscal years 2025–2029; that authorization would not itself provide the money.
An eligible entity receiving a grant under this section may use funds to— (1) carry out any of the activities described in section 105 of the Housing and Community Development Act of 1974 (42 U.S.C. 5305); (2) carry out any of the activities permitted under the Local and Regional Project Assistance Program under section 6702 of title 49, United States Code; or (3) modernize, renovate, or repair facilities used by public elementary schools, public secondary schools, and public institutions of higher education
All laborers and mechanics employed by contractors or subcontractors in the performance of construction work financed in whole or in part with a grant received under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality
There is authorized to be appropriated to carry out this section $2,000,000,000 for each of fiscal years 2025 through 2029.
Section 102 would authorize $48 billion annually for the Housing Trust Fund and $3 billion annually for the Capital Magnet Fund for fiscal years 2025–2034. It would set the amount in the public housing Capital Fund provision at $70 billion for fiscal year 2025 and replace amounts in the Indian and Native Hawaiian housing provisions with $2.5 billion and $50 million, respectively, for that year, followed by amounts as necessary for 2026–2034. The surrounding statutes are not supplied, so those three amendments are described as funding-amount changes without determining whether they authorize or directly provide funding. Section 102(d) would also delete the second sentence of the referenced Indian housing provision; its content and the deletion's effect cannot be determined from the supplied text.
There is authorized to be appropriated to the Housing Trust Fund $48,000,000,000 for each of fiscal years 2025 through 2034.
There is authorized to be appropriated to the Capital Magnet Fund $3,000,000,000 for each of fiscal years 2025 through 2034.
Capital fund For allocations of assistance from the Capital Fund, $70,000,000,000 for fiscal year 2025.
Indian housing block grant program Section 108 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4117) is amended— (1) by striking such sums as may be necessary for each of fiscal years 2009 through 2013 and inserting $2,500,000,000 for fiscal year 2025 and such sums as may be necessary for each of fiscal years 2026 through 2034; and (2) by striking the second sentence.
Native Hawaiian housing block grant program Section 824 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4243) is amended by striking such sums as may be necessary for each of fiscal years 2001, 2002, 2003, 2004, and 2005 and inserting $50,000,000 for fiscal year 2025 and such sums as may be necessary for each of fiscal years 2026 through 2034.
Section 102 would directly appropriate fiscal year 2025 rural housing funds: $420 million for section 502 direct loans, $54 million for section 514 assistance, $420 million for section 515 assistance, $75 million for section 516 assistance, $75 million for section 523 grants, and $240 million for the Rural Housing Service's multifamily preservation and revitalization demonstration program.
Out of funds in the Treasury not otherwise appropriated, there is appropriated for fiscal year 2025— (1) to provide direct loans under section 502 of the Housing Act of 1949 (42 U.S.C. 1472), $420,000,000; (2) to provide assistance under section 514 of such Act (42 U.S.C. 1484), $54,000,000; (3) to provide assistance under section 515 of such Act (42 U.S.C. 1485), $420,000,000; (4) to provide assistance under section 516 of such Act (42 U.S.C. 1486), $75,000,000; (5) to provide grants under section 523 of such Act (42 U.S.C. 1490c), $75,000,000; and (6) to provide funding to carry out the Multifamily Preservation and Revitalization Demonstration Program of the Rural Housing Service (as authorized under sections 514, 515, and 516 of such Act (42 U.S.C. 1484, 1485, 1486)), $240,000,000.
Section 102 would also directly appropriate $4 billion for fiscal year 2025 to a Middle Class Housing Emergency Fund. Competitive grants would go to state housing finance agencies where specified housing shortages coincide with rents or home prices substantially outpacing local median income over five years. Grants would fund housing affordable to residents earning below 120% of area median income and measures against displacement and harassment. Funded homes would have to remain affordable to that income group permanently; covered construction would require prevailing wages and planning would require community consultation.
the Secretary of Housing and Urban Development shall award grants on a competitive basis to State housing finance agencies located in a State in which— (A) there is a shortage of affordable rental housing units available to individuals with an income that is at or below the area median income and median rents have risen on average over the preceding 5 years substantially faster than the area median income; or (B) there is a shortage of housing units available for sale that are affordable to individuals with an income that is at or below the area median income and median home prices have risen on average over the preceding 5 years substantially faster than the area median income.
Grants received under this subsection shall be used to fund— (A) the construction or acquisition, by nonprofit organizations, State or local agencies, special-purpose units of local government, resident councils organized to acquire housing, and other qualified purchasers (as defined by the Secretary of Housing and Urban Development), of rental housing units or units for purchase that are affordable to residents making less than 120 percent of the area median income; and (B) measures to prevent tenant displacement and harassment
All laborers and mechanics employed by contractors or subcontractors in the performance of construction work financed in whole or in part with a grant received under this subsection shall be paid wages at rates not less than those prevailing on similar construction in the locality
a requirement that grantees and subgrantees consult with impacted communities in policymaking and planning for the construction or acquisition of housing units as described in paragraph (4)(A); and (C) a requirement that all housing units constructed or acquired using grants awarded under the subsection are affordable to residents making less than 120 percent of the area median income in perpetuity.
there is appropriated to the fund established under this subsection $4,000,000,000 for fiscal year 2025.
Section 103 would require programs within one year to direct at least 75% of specified Federal Housing Administration (FHA) foreclosure properties to people who will live in them, either directly or through nonprofit community partners that rehabilitate or develop and resell them. The Claim Without Conveyance of Title program would have an exclusive bidding period for eligible governments, HUD-approved nonprofits, and owner-occupants. Unless HUD approved otherwise, buyers of FHA-owned properties could not resell them within 15 years through arrangements that withhold title at the time of sale.
the term community partner has the meaning given the term nonprofit organization in section 229 of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4119).
Not later than 1 year after the date of enactment of this section, the Secretary shall develop programs within the Federal Housing Administration to ensure that not less than 75 percent of the single-family residential properties conveyed to the Federal Housing Administration after foreclosure or conveyed to third parties under the Claim Without Conveyance of Title program are sold— (1) directly to an owner-occupant; or (2) to community partners that will— (A) rehabilitate or develop the property; and (B) sell the property to an owner-occupant.
Not later than 1 year after the date of enactment of this section, the Secretary shall develop guidelines for the Claim Without Conveyance of Title program that provide an exclusive listing period during which only eligible governmental entities, nonprofit organizations approved by the Department of Housing and Urban Development, and owner-occupant buyers may submit bids.
Unless the Secretary provides prior approval, the Secretary shall prohibit any purchaser of a real estate-owned property of the Federal Housing Administration from reselling the property within 15 years of purchase using a land installment contract or through any other mechanism that does not transfer title to the buyer at the time of sale.
For covered FHA mortgages, section 103 would permit sales only when the insurance fund's capital is substantially below its required ratio, reasonable alternatives are unavailable, and sales are limited to what is necessary to help restore that ratio. Auction sales would require prior public rulemaking. Lenders and servicers would have to certify their review and implementation of appropriate foreclosure-avoidance options. False certifications could trigger repayment of insurance claims, borrower lawsuits for damages and legal costs, and reversal of property transfers, subject to protection for a good-faith buyer who acquired the home as a primary residence.
may sell or transfer a covered mortgage only if— (i) the capital level of the Fund is substantially below the capital ratio required under section 205(f)(2); (ii) the Secretary certifies that other reasonable measures are not available to restore the Fund to that capital ratio; and (iii) the Secretary complies with paragraph (2)(C), if applicable; and (B) may sell or transfer only such covered mortgages as are necessary to assist in restoration of that capital ratio.
The Secretary may not sell any covered mortgage through any type of non-performing loan sale auction program until the Secretary issues rules, through the notice and comment rule making procedures under section 553 of title 5, United States Code
the lender or servicer of the loan shall provide the Secretary and the borrower with written certification of the loss mitigation review contained in the FHA Single Family Housing Policy Handbook 4000.1, or any successor handbook, which certification shall include a description of the actions the lender or servicer has taken, prior to transfer of the loan to the Secretary, to— (i) review the borrower for all available loss mitigation options of the Federal Housing Administration; and (ii) implement the options described in clause (i) that are appropriate to the borrower.
Any false statement provided in a certification described in subparagraph (A) shall be a basis for— (I) recovery by the Secretary of any amounts paid under the insurance claim and any other penalties and sanctions authorized under Federal law; and (II) a private right of action by the borrower against the lender and servicer, with remedies to include compensatory and punitive damages and an assessment of costs and attorney's fees.
Unless a bona fide purchaser has acquired title to the property as a primary residence— (I) a certification described in subparagraph (A) that contains a false statement shall be a basis for revoking the transfer of the property
Section 103 contains parallel protections for covered FHA, Fannie Mae, and Freddie Mac mortgage sales: at least 90 days' notice, continued payment-reduction options at least as favorable as before sale, and foreclosure defenses for noncompliance. At least 90% of specified properties acquired through foreclosure would have to go to owner-occupants, qualifying nonprofits, or affordable rentals for households below 80% of area median income for at least 15 years; the Fannie Mae and Freddie Mac provisions specify properties in an auction. Community partners would receive direct-sale opportunities or a final chance to outbid a nonpartner auction winner.
is mailed via certified and first class mail not less than 90 days before the date on which the loan is included in any proposed sale
Each purchaser of a covered mortgage shall offer the borrower on the covered mortgage loss mitigation options that allow for payment reduction at least as great as would be available to the borrower if the loan had not been sold.
the failure of the Secretary or the transferee to comply with the requirements under this section for a loan in default shall be a defense to foreclosure
the failure of the corporation or the transferee to comply with the requirements under this subsection for a loan in default shall be a defense to foreclosure
the failure of the Corporation or the transferee to comply with the requirements under this subsection for a loan in default shall be a defense to foreclosure
With respect to covered mortgages that are sold under this title and acquired by the buyer through foreclosure sale, not less than 90 percent of the properties that are the subject of the covered mortgages shall be— (1) sold to owner-occupants; (2) operated or transferred to an entity that will operate the property as affordable rental housing for households below 80 percent of the area median income for a period of not less than 15 years; or (3) transferred or donated to a nonprofit agency that is certified by the Secretary and will redevelop the property for owner occupancy or affordable rental housing.
With respect to covered mortgages that are sold by the corporation under this section and foreclosed upon by the buyer, not less than 90 percent of the properties that are the subject of the covered mortgages in an auction shall be—
With respect to covered mortgages that are sold by the Corporation under this section and foreclosed upon by the buyer, not less than 90 percent of the properties that are the subject of the covered mortgages in an auction shall be—
(A) sold to owner-occupants; (B) operated or transferred to an entity that will operate the property as affordable rental housing for households below 80 percent of the area median income for a period of not less than 15 years; or (C) transferred or donated to a nonprofit agency that is certified by the Corporation and will redevelop the property for owner occupancy or affordable rental housing.
designing pools of covered mortgages for direct sale to a community partner
in the case of an auction, if the winning bid is not from a community partner, permitting any community partner that bid during that same auction to have a final opportunity to enter a higher bid on the pool.
For bulk sales of single-family re-performing mortgages, section 103 would prioritize qualified governments and nonprofits and require at least 90 days' notice. Buyers would have to offer specified payment relief when borrowers become more than 60 days delinquent. Failure to follow relief rules could block foreclosure. Purchasers would face four years of quarterly loan reporting, and the enterprises could retain loans or properties without compensation for specified violations. Contract-for-deed, lease-to-own, and land-installment transfers would be prohibited unless the tenant or buyer is a nonprofit.
An enterprise may not conduct bulk auctions or other group sales of single family re-performing residential loans unless the following requirements are met: (1) The enterprise establishes a system that provides priority to Federal, State, local, or Tribal governments or nonprofit organizations that have the capacity and experience required for buying, servicing, and resolving single family mortgage loans
Clear, written notice is sent by the enterprise or servicer through certified and first-class mail to the borrower and all owners of record, with a copy sent to the enterprise if sent by the servicer, not less than 90 days before the inclusion of the loan in any proposed sale
The purchaser is required to offer targeted payment relief options to borrowers that become more than 60 days delinquent on their mortgage after their loan is sold that includes deferral of principal and term extension options that reduce payments to an affordable level.
Failure by the purchaser to follow the established loss mitigation guidelines shall serve as a defense to a judicial foreclosure and a basis to enjoin or otherwise stay a non-judicial foreclosure.
During the 4-year period following any auction or sale of single family re-performing residential mortgage loans under subsection (a), the Director shall require the enterprise to collect from each purchaser of such loans, including any subsequent purchaser of a loan, quarterly loan-level data regarding the treatment and outcome of the loan
The enterprises may forcibly retain loans or properties, without providing compensation, from purchasers that do not meet the requirements under subsection (a)(3).
Use of contract for deed, lease to own, or a land installment contract to sell or otherwise transfer any property that is secured by a purchased loan shall be prohibited unless the tenant or purchaser is a nonprofit organization.
Section 201 would establish HUD-administered home-purchase grants for buyers meeting both first-time and first-generation criteria, with income below 120% of area median income, or below 140% in HUD-designated high-cost areas. Eligibility depends on the buyer's and spouse's or domestic partner's specified homeownership histories and the parents' current ownership, or ownership at death. The first-generation definition applies the partner's three-year ownership condition even when the partner is not a co-borrower. The definitions exclude specified inherited shared property and include a divorce-related first-time-buyer exception. First-time and first-generation eligibility would rely on borrower attestations; creditors relying on them in good faith would receive liability protection.
The term eligible resident means an individual who— (A) is a first-time homebuyer; (B) is a first-generation homebuyer; and (C) has an income that is less than— (i) 120 percent of the area median income; or (ii) in the case of a homebuyer acquiring a property for use as a principal residence that is located in a high-cost area, as determined by the Secretary, 140 percent of the area median income.
shall be administered by the Secretary, acting through the Office of Housing of the Department of Housing and Urban Development
whose parents do not, or did not at the time of their death, to the best of the individual's knowledge, have any present ownership interest in a principal residence in any State, excluding ownership of heir property
whose spouse or domestic partner has not, during the 3-year period ending on the date of purchase of a property using a grant under subsection (b), had any present ownership interest in a principal residence in any State, excluding ownership of heir property, without regard to whether the spouse or domestic partner is a co-borrower on a mortgage for the property being purchased.
an individual (and if married or in a domestic partnership, the spouse or domestic partner of the individual) who, during the 3-year period ending on the date of purchase of a property using a grant under subsection (b)— (A) has had no present ownership in a principal residence in any State, excluding ownership of heir property; or (B) surrendered any present ownership interest in a principal residence in any State, excluding ownership of heir property, as part of a divorce proceeding.
The term heir property means residential property for which title— (A) passed by operation of law through intestacy; and (B) is held by 2 or more heirs as tenants in common.
No additional documentation beyond the borrower’s attestation shall be required to demonstrate eligibility under paragraphs (2) and (3) of subsection (a), and no creditor shall be subject to liability, including monetary penalties or requirements to indemnify a Federal agency or repurchase a loan that has been sold or securitized, for the provision of down payment assistance under this section to a borrower who does not meet the eligibility requirements under those paragraphs if the creditor does so in good faith reliance on borrower attestations of eligibility
Section 201 grants would generally be capped at 3.5% of the home's appraised value, using the applicable FHA mortgage limit when the value exceeds that limit. Buyers would not need an FHA mortgage and could combine this help with other down-payment assistance. The bill would directly appropriate necessary amounts for fiscal years 2025–2034 and require implementing rules within one year, including arrangements for funds before closing. Leaving the home before five years would normally require proportional repayment, with exceptions for hardship or an arm's-length sale producing gains below the repayment amount.
An eligible resident may receive a grant under subsection (b) in an amount equal to— (1) not more than 3.5 percent of the appraised value of the property to be purchased; or (2) if the appraised value of the property to be purchased exceeds the principal obligation amount limitation for mortgages insured under title II of the National Housing Act (12 U.S.C. 1707 et seq.), 3.5 percent of the maximum principal obligation limitation for the property to be purchased.
An eligible resident shall not be required to obtain a mortgage that is insured under title II of the National Housing Act (12 U.S.C. 1707 et seq.) as a condition of receiving a grant under subsection (b).
Receipt by an eligible recipient of assistance for a down payment from a source other than the fund established under subsection (b), including assistance from the Federal Government, a State or local government, or any other public, private, or nonprofit source, shall not affect the eligibility of the eligible recipient for assistance under subsection (b).
Not later than 1 year after the date of enactment of this Act, the Secretary shall—
promulgate regulations relating to the disbursement of funds under this section to ensure that an eligible resident is able to receive funds before the closing date for the home of the eligible resident
there is appropriated to the fund established under subsection (b) such sums as may be necessary for each of fiscal years 2025 through 2034
does not occupy the property as a principal residence for 5 years or more shall repay to the Secretary a proportional amount of the grant based on the number of years, if any, for which the eligible resident has occupied the property as a principal residence.
shall not be liable to the Secretary for repayment under paragraph (1) of this subsection if— (A) the failure to occupy the property as a principal residence is due at least in part to a hardship; or (B) the eligible resident sells the property before the expiration of the 5-year period beginning on the date of acquisition and the capital gains from the sale to a bona fide purchaser in an arm’s length transaction are less than the amount the eligible resident would be required to repay under paragraph (1).
Section 202 would authorize $5 billion for fiscal year 2025 for state formula grants addressing neighborhoods where median home sale prices are below median acquisition-and-rehabilitation or construction costs. Uses would include mortgage debt relief, delinquent taxes and tax liens, delinquent water or sewer bills and liens, home repairs, and acquiring or rehabilitating distressed properties. Allocations would depend on each state's borrowers with negative equity in their primary homes and its share of neighborhoods with the defined appraisal gap.
the term neighborhood with an appraisal gap means a census tract in which the median sales price of a dwelling unit is lower than the median cost to acquire and rehabilitate, or build, a new dwelling unit
measures that provide funds to borrowers to— (A) pay down arrears on an otherwise affordable loan; (B) pay down arrears or principal on a loan in order to qualify for a loan modification that will allow the borrower to keep the home; (C) pay off, or pay down part of, a second mortgage or home equity line of credit; (D) pay off a small-dollar mortgage; (E) pay delinquent taxes and tax liens; (F) pay off delinquent water or sewer bills and liens; and (G) pay for home repairs or maintenance or for modifications to bring the home into compliance with any applicable codes; and (2) programs to purchase or rehabilitate vacant or distressed properties to enhance neighborhood property values.
The Secretary shall distribute amounts under this section to States based on— (1) the number of borrowers with a primary residence with negative equity in each State; and (2) the share of neighborhoods with an appraisal gap in each State.
There is authorized to be appropriated to carry out this section $5,000,000,000 for fiscal year 2025.
Section 203 would rewrite Community Reinvestment Act requirements to cover insured deposit-taking institutions, their holding companies, and specified nonbank mortgage businesses. Reviews would examine how institutions serve community credit and financial needs, including affordability and sustainability of financial products. Assessment areas could include places with substantial lending even without branches. Consumer-law violations would negatively affect evaluations according to the harm caused.
The term regulated financial institution means— (A) an insured depository institution; (B) a depository institution holding company; and (C) a U.S. nonbank mortgage originator.
The term assessment area means, with respect to a regulated financial institution, each community, including a State, metropolitan area, or urban or rural county, in which the institution— (A) maintains deposit-taking branches, automated teller machines, or retail offices; (B) is represented by an agent; or (C) issues a significant number of loans or other products relative to the total number of loans or other products made by the institution or relative to the total number of loans or other products offered by the private sector market.
Evaluation of the responsiveness, affordability, and sustainability of retail financial services including credit and deposit products shall positively or negatively affect tests scores, depending on bank performance
Assess the record of the U.S. nonbank mortgage originator in meeting the credit or other financial needs of its entire community, in particular low-income and moderate-income people and communities and other distressed or underserved communities and other underserved populations, consistent with the safe and sound operation of the U.S. nonbank mortgage originator.
If a regulated financial institution has engaged in acts or practices that the appropriate Federal financial supervisory agency has determined to be unfair, deceptive, or abusive or acts or practices that violate enumerated consumer laws intended to ensure the fair, equitable, and nondiscriminatory access to credit for individuals and communities that are enforced by the Bureau of Consumer Financial Protection or other Federal or State agencies, the written evaluation shall be negatively influenced in a manner commensurate with the extent of the harm suffered by those individuals and communities.
Section 203 would require improvement plans for ratings of low satisfactory or worse, including such ratings in an individual assessment area. Two consecutive overall ratings of needs to improve or substantial noncompliance would expose institutions to specified sanctions, as applicable, including growth restrictions, divestitures, and recovery of executive compensation. Covered expansion and acquisition reviews would include public comment and community-benefit plans; certain poor local ratings would trigger hearings. Rating appeals would also receive public notice and comment.
an improvement plan for an institution that receives a rating of ‘low satisfactory’ or lower on the written evaluation of the institution, or such a rating in any individual assessment area
A regulated financial institution other than a U.S. nonbank mortgage originator that receives overall performance ratings under this section of needs to improve or substantial noncompliance for 2 consecutive examinations shall be subject to the following penalties, as deemed applicable by the appropriate Federal financial supervisory agency
Restrictions on the institution’s growth (overall or in discrete areas), business activities, or payment of dividends
Requiring the institution to simplify or reduce its operations, including that the institution reduce its asset size, divest subsidiaries or business lines, or exit from 1 or more markets of operation. (D) Recovery, or claw back, of portions of executive compensation
The appropriate Federal financial supervisory agency shall have the same authority to assess penalties and fees under subsection (a)(4) for U.S. nonbank mortgage originator as is the case for regulated financial institutions described in subsection (a).
provide an opportunity for public comment for a period of not less than 60 days
a demonstration of public benefit, including a community benefits plan with measurable goals regarding increasing responsible lending and other financial products that is commensurate with the ability of the institution to accomplish those goals
a public hearing for any institution that has a received a need-to-improve or low satisfactory grade in any individual assessment area during the most recent examination.
the Board has provided public notice and opportunity for comment for not less than 60 days
If a regulated financial institution appeals the assigned rating under this section, the appropriate Federal financial supervisory agency shall— (1) post a public notice of the appeal on the part of the website of the appropriate Federal financial supervisory agency that contains information on this title; and (2) provide an opportunity for public comment on the appeal.
Section 203 would require regulators, in the specified institution examinations, to deduct an amount no greater than an institution's financing of defined fossil-fuel expansion from its reported community-development loans and investments. Only financing of qualifying climate-resilience and disaster-mitigation activities targeted to underserved communities could offset that deduction. This would change regulatory credit for financing; the text does not establish what economic or environmental results would follow.
determine the total dollar amount of loans and investments to fossil fuel companies for the purposes of fossil fuel expansion that were originated or held by the financial institution during the period covered by an examination under section 804; and (ii) deduct not more than that total dollar amount from the reported community development loans and investments of the financial institution, both in the aggregate and at the local market, or assessment area, level.
The term fossil fuel expansion means financing for new fossil fuel infrastructure projects, including financing of exploration activities, that would— (A) increase greenhouse gas emissions; and (B) increase the difficulty of achieving Federal, State, or local carbon emission reduction goals.
The deduction described in subparagraph (A)(ii) may only be offset by financing by the institution of climate resiliency and disaster mitigation activities specifically targeted to underserved communities
Section 203 would expand collection and public reporting of lending, deposits, and community-development data, while protecting personally identifiable financial information. Regulators could exempt institutions from consumer-loan data collection for low lending levels or other factors. Institutions would form community advisory committees and meet with them at least twice yearly. Agencies would study credit discrimination and disparities within two years and every two years afterward, review regulations every five years, and maintain voluntary registries of participating community organizations and stakeholders.
Each regulated financial institution shall collect and maintain in machine readable form, as prescribed by the appropriate Federal financial supervisory agency, data for consumer loans originated or purchased by the regulated financial institution
The appropriate Federal financial supervisory agencies may exempt classes of regulated financial institutions from the requirements under subparagraph (A) due to low levels of consumer lending or other factors.
An appropriate Federal financial supervisory agency shall include data on deposits and community development loans and investments in the disclosure statements prepared under paragraph (1).
to allow the public to access online and in a searchable format the data maintained under paragraphs (1) through (4) of subsection (a); and (2) that ensures that personally identifiable financial information is not disclosed to public.
Each regulated financial institution that is not a U.S. nonbank mortgage originator shall form a separate Community Advisory Committee
Each U.S. nonbank mortgage originator shall form a separate Community Advisory Committee
The executives of each regulated financial institution shall meet not less frequently than twice per year with the Community Advisory Committees
Not later than the end of the 2-year period beginning on the date of enactment of this section, and every 2 years thereafter
complete an interagency statistical study to identify— (1) metropolitan areas and rural counties that either experience ongoing discrimination or exhibit significant racial disparities in access to credit for any racial or ethnic group; and (2) significant disparities in access to branches by racial or ethnic composition of census tract and disparities in access to community development financing by racial or ethnic composition of census tract.
Not later than 5 years after the date of enactment of this subsection and every 5 years thereafter, the appropriate Federal financial supervisory agencies shall— (1) review the regulations promulgated to carry out this title
maintain a list of community-based organizations and other stakeholders who wish to be listed and who have commented on examinations conducted under section 804 and applications regarding community needs and bank performance
Section 204 would let regulators approve federal credit union membership expansion into underserved areas when the credit union meets capital requirements and establishes ongoing service within 24 months. Missing that service deadline would automatically terminate approval; failure to meet the referenced significant unmet needs plan could also lead to termination. Previously approved areas with an established service facility would be preserved within the underserved-area definition. The section would require reporting, community-focused business plans, hearings for specified large proposed service areas, and final regulations within one year. The text's references to a significant unmet needs plan are not clearly reconciled with the business and marketing plan described in new subsection (h).
includes, with respect to any Federal credit union, any geographic area within which the credit union— (i) has received approval to provide service as an underserved area before the date of enactment of this paragraph from the Administration; and (ii) has established a service facility before that date of enactment.
at the time of the approval, that the credit union is well capitalized or adequately capitalized (as defined in section 216(c)(1)); and (ii) before the end of the 24-month period beginning on the date of the approval, the credit union has established and maintains an ongoing method to provide services in the local community, neighborhood, or rural district.
Any failure of a Federal credit union to meet the requirement of clause (ii) of subparagraph (A) by the end of the 24-month period referred to in that clause shall constitute a termination, as a matter of law, of any approval of an application under this paragraph
The Board may terminate the approval of an application under this paragraph with respect to the membership of a Federal credit union upon a finding that the credit union is not meeting the terms of the significant unmet needs plan of the credit union submitted under subsection (h)(1).
Any Federal credit union that has an application approved under this paragraph shall, as part of the ordinary course of the examination cycle and supervision process, submit a report to the Administration
shall submit to the Board a business plan, which shall include, among other issues, a marketing plan that identifies— (A) the unique needs of the various demographic groups in the proposed community; and (B) how the credit union will market to each group, particularly underserved groups, to address those needs.
for an area with multiple political jurisdictions with a population of not less than 2,500,000, the Administration shall— (A) publish a notice in the Federal Register seeking comment from interested parties about the proposed community; and (B) conduct a public hearing regarding the application of the Federal credit union.
Not later than 1 year after the date of enactment of this Act, the National Credit Union Administration Board shall issue final regulations
Section 205 would set public-welfare investment limits for national banks and state member banks. For well-capitalized national banks, the ordinary limit would be 15% of the specified capital-and-surplus base, rising to at most 25% with a finding of no significant deposit-insurance risk. The comparable state-bank treatment would also require an outstanding or satisfactory community-reinvestment rating and remain subject to state law. Banks that are not well capitalized would generally face a 5% limit, with approval to go higher only if adequately capitalized and posing no significant insurance-fund risk, and never above 15%. Investments exposing a bank to unlimited liability would be prohibited.
Aggregate investments for associations that do not meet the criteria of being well capitalized, as defined in section 24.2(e) of title 12, Code of Federal Regulations, or any successor regulation, under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund, and the association is adequately capitalized.
In no case shall aggregate investments of an association that do not meet the criteria for being well capitalized under this paragraph exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund.
Aggregate investments of well capitalized associations, as defined in section 24.2(e) of title 12, Code of Federal Regulations, or any successor regulation, under this paragraph shall not exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund.
aggregate investments under this paragraph shall not exceed an amount equal to the sum of 25 percent of the association’s capital stock actually paid in and unimpaired and 25 percent of the association’s unimpaired surplus fund.
A State member bank may make investments directly or indirectly, each of which promotes the public welfare by benefitting primarily low- and moderate-income communities or families (such as by providing housing, services, or jobs), to the extent permissible under State law. A State member bank shall not make any such investment if the investment would expose the State member bank to unlimited liability.
Aggregate investments for State member banks that do not meet the criteria of being well capitalized, as defined in section 208.43(b) of title 12, Code of Federal Regulations, or any successor regulation, under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association's capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Board determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund, and the association is adequately capitalized.
In no case shall aggregate investments of a State member bank that does not meet the criteria for being well capitalized under this paragraph exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund.
Aggregate investments of well capitalized State member banks, as defined in section 208.43(b) of title 12, Code of Federal Regulations, or any successor regulation, with an examination rating under section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 2903) of outstanding or satisfactory, under this paragraph shall not exceed an amount equal to the sum of 15 percent of the State member bank’s capital stock actually paid in and unimpaired and 15 percent of the state member Bank’s unimpaired surplus fund, unless the Board determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund.
aggregate investments under this paragraph shall not exceed an amount equal to the sum of 25 percent of the State member bank’s capital stock actually paid in and unimpaired and 25 percent of the State member bank’s unimpaired surplus fund.
An association shall not make any such investment if the investment would expose the association to unlimited liability.
Section 206 would temporarily extend veterans' home-loan eligibility to direct descendants, including legally adopted descendants, of deceased veterans who served on active duty between June 22, 1944, and April 11, 1968, and never received a covered housing-loan benefit. Descendants must be alive at enactment and meet section 201's first-time and first-generation buyer definitions. Eligibility would begin one year after enactment and end ten years after the required regulations are prescribed. Regulations would be due within 180 days and address incomplete records and multiple descendants seeking benefits.
The term veteran also includes, for purposes of home loans, any direct descendant of a veteran described in subparagraph (B) if the descendant— (i) is living on the date of the enactment of the American Housing and Economic Mobility Act of 2025; (ii) is a first-time homebuyer; and (iii) is a first-generation homebuyer.
A veteran described in this clause is a veteran who— (i) served on active duty at any time during the period between June 22, 1944, and April 11, 1968; (ii) is deceased; and (iii) did not receive a housing loan benefit under this chapter during his or her lifetime.
The term direct descendant includes a legally adopted descendant. (ii) The terms first-generation homebuyer and first-time homebuyer have the meanings given those terms in section 201(a) of the American Housing and Economic Mobility Act of 2025.
the period beginning one year after the date of the enactment of this Act and ending ten years after the date on which the Secretary of Veterans Affairs prescribes the regulations required by subsection (c).
Not later than 180 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall prescribe regulations
the eligibility of a direct descendant for housing loan benefits under this section when the records of the Veterans Benefits Administration are incomplete or otherwise inadequate to verify eligibility; and (B) appropriate implementation of this section if more than one direct descendant of a veteran seeks housing loan benefits under this section.
Section 301 would expressly add sexual orientation, gender identity, marital status, source of income, and veteran status to specified federal housing discrimination and intimidation provisions, and add actual-or-perceived wording. Source of income would include qualifying public assistance and rental vouchers. The text would preserve veterans' loan programs and specified veterans' housing assistance. It expressly says these amendments should not imply that any class lacked protection before enactment.
by inserting actual or perceived before race, color each place that term appears
by striking sex, each place that term appears and inserting sex (including sexual orientation and gender identity), marital status, source of income, veteran status,
Source of income includes income for which there is a reasonable expectation that the income will continue from—
any government or private assistance, grant, loan, or rental assistance program, including vouchers issued under the United States Housing Act of 1937
Nothing in this title shall be construed to— (A) prohibit a lender from implementing a loan program for veterans or based upon veteran status; or (B) prohibit an entity from providing housing assistance under— (i) section 8(o)(19) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(19)); (ii) the Homeless Providers Grant and Per Diem program of the Department of Veterans Affairs; or (iii) any other Federal housing assistance program for veterans or based on veteran status.
Prevention of intimidation Section 901 of the Civil Rights Act of 1968 (42 U.S.C. 3631) is amended—
Nothing in the amendments made by this section shall be construed to mean that a particular class of individuals was not protected against discrimination under Federal law as in effect on the day before the date of enactment of this Act.
Section 302 would require metropolitan public housing agencies administering tenant-based assistance to analyze where participants live at least every five years and adopt policies addressing barriers to areas associated with better outcomes. Agencies would separately consider families with children, people with disabilities, and other protected groups, coordinate regionally, and publish analyses while protecting privacy. HUD would supply mapping tools and assess agency performance. The section would also add specified relocation-help costs to an administrative-fee provision and make subsections (a) and (b) of section 502 of the Native American Housing Assistance and Self-Determination Act inapplicable to tenant-based assistance. Those subsections are not reproduced, so the substantive effect of that exception cannot be determined from the supplied text.
Indian housing assistance Section 502 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4181) is amended by adding at the end the following: (c) Applicability Subsections (a) and (b) shall not apply with respect to tenant-based assistance provided under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)).
including the cost of assisting families with children or families with a member with a disability that move to lower poverty, higher opportunity neighborhoods (as determined by the Secretary based on objective, evidence-based criteria)
analyze the locations where the participants in the program of the public housing agency live; and (II) based on the analysis described in subclause (I), establish policies and practices to reduce disparities and barriers to access to locations throughout the metropolitan area that evidence indicates are more likely to improve outcomes for children or adults.
consider separately the locations of families with children, households that include a person with disabilities, and other groups protected under the Fair Housing Act
provide mapping tools and other information necessary for a public housing agency to perform the location analysis
be performed by each public housing agency described in clause (i) not less frequently than once every 5 years; (II) be performed by all public housing agencies in a metropolitan area in the same year, as determined by the Secretary; and (III) be made available to the public in a manner that protects the privacy of program participants.
consult with other such public housing agencies in the same metropolitan area, or smaller regional area approved by the Secretary
The Secretary shall include public housing agency performance in achieving the goal described in subparagraph (A)(i)(II) in the periodic assessment of agency performance
Section 302 would require HUD within one year to allow eligible groups of public housing agencies to combine specified funding contracts or jointly administer parts of their programs. Agencies in the Moving to Work demonstration would be excluded from the specified full funding-contract consolidation options. Their special flexibility and waivers would not apply to funds or activities administered through partial joint arrangements.
Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall establish policies and procedures that— (A) enable public housing agencies that elect to operate in consortia under section 13(a) of the United States Housing Act of 1937 (42 U.S.C. 1437k(a)), excluding public housing agencies participating in the Moving to Work demonstration program
to consolidate their funding contracts for assistance provided under section 8(o) of such Act (42 U.S.C. 1437f(o)) into a single contract; (ii) to consolidate their funding contracts for assistance provided under subsections (d) and (e) of section 9 of such Act (42 U.S.C. 1437g); or (iii) to exercise the consolidation options under each of clauses (i) and (ii)
enable public housing agencies to form partial consortia under such section 13(a) (42 U.S.C. 1437k(a)) that consolidate the administration of certain aspects of their housing programs
Any flexibility or waiver applicable to the Moving to Work demonstration program shall not apply to any activities or funds administered through a partial consortium
Sections 401–402 would amend the federal tax code. Section 402 would set the basic estate-tax exclusion at $3.5 million and replace the tentative-tax schedule with 55% on the first $13 million of the amount used in that calculation, 60% on the next portion through $93 million, and 65% above that. If a separately defined applicable amount exceeded $1 billion, an additional tax would equal 10% of that entire applicable amount. These are tax-calculation amounts, not simple brackets on a person's total property. The changes would apply to deaths, gifts, and generation-skipping transfers after enactment. The underlying provisions needed to calculate a particular liability are not fully supplied.
Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
If the amount with respect to which the tentative tax to be computed is: The tentative tax is: Not over $13,000,000 55 percent of such amount. Over $13,000,000 but not over $93,000,000 $7,150,000, plus 60 percent of the excess of such amount over $13,000,000. Over $93,000,000 $55,150,000, plus 65 percent of the excess of such amount over $93,000,000.
the basic exclusion amount is $3,500,000.
In the case of a taxable estate for which the applicable amount is in excess of $1,000,000,000, the tax determined under subsection (b) shall be increased by an amount equal to 10 percent of such applicable amount.
the applicable amount shall be equal to the sum of the amounts under subparagraphs (A) and (B) of paragraph (1) of subsection (b) for the taxable estate.
The amendments made by this section shall apply to estates of decedents dying, and generation-skipping transfers and gifts made, after the date of the enactment of this Act.
Section 403 addresses trusts in which the person transferring assets keeps a right to fixed payments. To receive the specified tax treatment, that payment right would have to last at least ten years, annual payments could not decrease during the first ten years, and the remainder interest would have to be worth at least 10% of the transferred assets at transfer. The rule would apply to transfers after enactment.
in the case of an interest described in paragraph (1)(A) (determined without regard to this paragraph) which is retained by the transferor, such interest shall be treated as described in such paragraph only if— (A) the right to receive the fixed amounts referred to in such paragraph is for a term of not less than 10 years, (B) such fixed amounts, when determined on an annual basis, do not decrease relative to any prior year during the first 10 years of the term referred to in subparagraph (A), and (C) the remainder interest has a value equal to or greater than 10 percent of the value of the assets transferred to the trust, determined as of the time of the transfer.
The amendments made by this section shall apply to transfers made after the date of the enactment of this Act.
Section 404 would apply estate and gift tax rules to specified portions of trusts treated as owned by a person under the referenced tax rules. It would cover grantor-owned portions and specified portions associated with disregarded transactions involving a non-grantor deemed owner. Covered assets would enter that person's gross estate at death; lifetime distributions and ending deemed ownership would be treated as gifts. Previously counted gifts would reduce the amount subject to these rules, and the trust would owe the resulting tax. Exceptions would cover trusts already included in the owner's gross estate and trust types Treasury determines lack a significant transfer-tax-avoidance purpose. The rules would cover new trusts and specified contributions or transactions involving older trusts on or after enactment.
This section shall apply to— (1) the portion of a trust with respect to which the grantor is the deemed owner, and (2) the portion of the trust to which a person who is not the grantor is a deemed owner by reason of the rules of subpart E of part 1 of subchapter J of chapter 1, and such deemed owner engages in a sale, exchange, or comparable transaction with the trust that is disregarded for purposes of subtitle A.
the value of the gross estate of the deceased deemed owner of such portion shall include all assets attributable to that portion at the time of the death of such owner
any distribution from such portion to one or more beneficiaries during the life of the deemed owner of such portion shall be treated as a transfer by gift for purposes of chapter 12
such owner ceases to be treated as the owner of such portion under subpart E of part 1 of subchapter J of chapter 1, all assets attributable to such portion at such time shall be treated for purposes of chapter 12 as a transfer by gift made by the deemed owner.
This section shall not apply to— (1) any trust that is includible in the gross estate of the deemed owner (without regard to subsection (a)(1)), and (2) any other type of trust that the Secretary determines by regulations or other guidance does not have as a significant purpose the avoidance of transfer taxes.
The amount to which subsection (a) applies shall be reduced by the value of any transfer by gift by the deemed owner to the trust previously taken into account by the deemed owner under chapter 12.
Any tax imposed pursuant to subsection (a) shall be a liability of the trust.
The amendments made by this section shall apply— (1) to trusts created on or after the date of the enactment of this Act, (2) to any portion of a trust established before the date of the enactment of this Act which is attributable to a contribution made on or after such date, and (3) to any portion of a trust established before the date of the enactment of this Act to which section 2901(a) of the Internal Revenue Code of 1986 (as added by subsection (a)) applies by reason of a transaction described in section 2901(b)(2) of such Code on or after such date.
Section 405 would remove the generation-skipping transfer exemption for specified transfers outside its exempt-person definition by setting the inclusion ratio at one for covered transfers and trust terminations. Exempt persons would include individuals no more than two generations below the transferor, people born before the trust was created, and trusts whose interests are all held by such people, disregarding avoidance interests. Trusts created before January 1, 2026, would be treated as created on that date for the birth-date test. The main amendment would take effect at enactment. The section would also repeal section 1433(b)(2) of the Tax Reform Act of 1986 for transfers after enactment; that provision is not reproduced, so the repeal's substantive effect cannot be determined here.
In the case of any direct skip or taxable distribution made to any person who is not an exempt person, the inclusion ratio shall be 1.
In the case of any taxable termination which occurs at any time immediately after no exempt person is a beneficiary of the trust, the inclusion ratio shall be 1.
the term exempt person means— (I) a natural person— (aa) who is assigned to a generation which is 2 or fewer generations below the generation assignment of the transferor, or (bb) whose date of birth precedes the date on which the trust was created, or (II) a trust in which all interests are held by persons described in subclause (I).
any interest which is used primarily to postpone or avoid the application of this subsection shall be disregarded.
if the trust was created before January 1, 2026, such trust shall be deemed to have been created on January 1, 2026.
Section 1433(b)(2) of the Tax Reform Act of 1986 (Public Law 99–514) is repealed.
The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.
The amendment made by subsection (b) shall apply to generation-skipping transfers (within the meaning of section 2611 of the Internal Revenue Code of 1986) made after the date of enactment of this Act.
Section 406 would rewrite the annual gift exclusion using a $10,000 per-recipient amount. For gifts through trusts, interests in passthrough entities, sale-restricted interests, and other property recipients cannot immediately liquidate without regard to specified withdrawal or similar rights, the donor's combined exclusion would be capped at twice the per-recipient amount in effect for that year. The section would also delete tax-code section 2503(c), whose text is not supplied. These changes would apply to calendar years beginning after enactment; the supplied text does not establish the operation of any remaining inflation-adjustment rules or the substantive effect of the deletion.
In the case of gifts made to any person by the donor during the calendar year, the first $10,000 of such gifts to such person shall not, for purposes of subsection (a), be included in the total amount of gifts made during such year.
The aggregate amount excluded under subparagraph (A) with respect to all transfers described in clause (ii) made by the donor during the calendar year shall not exceed twice the dollar amount in effect under such subparagraph for such calendar year.
(I) a transfer in trust, (II) a transfer of an interest in a passthrough entity, (III) a transfer of an interest subject to a prohibition on sale, and (IV) any other transfer of property that, without regard to withdrawal, put, or other such rights in the donee, cannot immediately be liquidated by the donee.
Section 2503 is amended by striking subsection (c).
The amendments made by this section shall apply to any calendar year beginning after the date of the enactment of this Act.
Section 407 would make tax-code section 1014 inapplicable to property held in a trust of which the transferor is considered the owner under the referenced rules when, after transfer to the trust, the property is not includible in that person's gross estate. The section describes this as disallowing a step-up in basis for certain grantor-trust property; the underlying section 1014 is not reproduced. The change would apply to transfers after enactment, and the section expressly forbids drawing conclusions from it about treatment of earlier transfers.
Clarification regarding disallowance of step-up in basis for property held in certain grantor trusts
Section 1014 is amended—
This section shall not apply to property— (1) held in a trust of which the transferor is considered the owner under subpart E of part I of subchapter J, and (2) if, after the transfer of such property to the trust, such property is not includible in the gross estate of the transferor for purposes of chapter 11.
The amendments made by this section shall apply to transfers after the date of the enactment of this Act.
No inference may be drawn from the amendments made by this section with respect to the application of section 1014 of the Internal Revenue Code of 1986 to property described in subsection (f) of such section (as added by subsection (a)) which was transferred on or before the date of enactment of this Act.
Section 408 would prohibit valuation discounts for transfers of entity interests that are not actively traded under the referenced definition when the transferor, recipient, and their families control the entity immediately before transfer. For covered entity transfers, nonbusiness assets would also be valued as if transferred directly, without discounts. The text provides exceptions to the treatment of passive assets as nonbusiness assets, including specified actively used real estate, and treats reasonably necessary working capital as business property. It would also look through qualifying ownership stakes of at least 10% to underlying assets. The rules would apply to transfers after enactment.
in the case of the transfer of any interest in an entity other than an interest which is actively traded (within the meaning of section 1092), if the transferor, the transferee, and members of the family of the transferor and transferee have control of such entity immediately before such transfer, no discount shall be allowed
For purposes of this subtitle, in the case of the transfer of any interest in an entity other than an interest which is actively traded (within the meaning of section 1092)— (A) the value of any nonbusiness assets held by the entity with respect to such interest shall be determined as if the transferor had transferred such assets directly to the transferee (and no valuation discount shall be allowed with respect to such nonbusiness assets)
a passive asset shall be treated as a nonbusiness asset unless— (I) the asset is property described in paragraph (1) or (4) of section 1221(a) or is a hedge with respect to such property, or (II) the asset is real property used in the active conduct of 1 or more real property trades or businesses (within the meaning of section 469(c)(7)(C)) in which the transferor materially participates and with respect to which the transferor meets the requirements of section 469(c)(7)(B)(ii).
Any asset (including a passive asset) which is held as a part of the reasonably required working capital needs of a trade or business shall be treated as used in the active conduct of a trade or business.
If a nonbusiness asset of an entity described in paragraph (1) consists of a 10-percent interest in any other entity, this subsection shall be applied by disregarding the 10-percent interest and by treating the entity as holding directly its ratable share of the assets of the other entity.
The term 10-percent interest means— (i) in the case of an interest in a corporation, direct ownership of at least 10 percent (by vote or value) of the stock in such corporation, (ii) in the case of an interest in a partnership, direct ownership of at least 10 percent of the capital or profits interest in the partnership, and (iii) in any other case, direct ownership of at least 10 percent of the beneficial interests in the entity.
The amendments made by this section shall apply to transfers after the date of the enactment of this Act.
Section 409 would add an estate-and-trust income surcharge of 5% on modified adjusted gross income above $200,000, plus another 3% on income above $500,000. Its income measure would subtract specified interest deductions and the deduction allowed under section 642(c), whose full terms are not supplied. Qualifying wholly charitable trusts would be exempt, and all portions of an electing small business trust would be combined for the income calculation. The section also contains coordinating tax amendments and directs Treasury to issue implementation and anti-avoidance guidance. It would apply to tax years beginning after enactment.
a tax equal to the sum of— (1) 5 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $200,000, plus (2) 3 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $500,000.
modified adjusted gross income means adjusted gross income reduced by any deduction (not taken into account in determining adjusted gross income) allowed for investment interest (as defined in section 163(d)) or business interest (as defined in section 163(j)).
Adjusted gross income shall be determined as provided in section 67(e) and reduced by the amount allowed as a deduction under section 642(c).
Charitable trusts Subsection (a) shall not apply to a trust all the unexpired interests in which are devoted to one or more of the purposes described in section 170(c)(2)(B).
all portions of any electing small business trust shall be treated as a single trust.
The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent the avoidance of the purposes of this section.
Coordination with certain provisions
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Section 410 would replace the $750,000 statutory amount in the valuation rules for certain farm and other real property with $3 million and update the inflation-adjustment references to 2026 and calendar year 2025. It would apply to estates of people dying, and gifts made, after December 31, 2025. The underlying eligibility and valuation rules are not reproduced, so this does not establish a $3 million exclusion for every farm.
Modification of rules for value of certain farm, etc., real property
Paragraph (2) of section 2032A(a) of the Internal Revenue Code of 1986 is amended by striking $750,000 and inserting $3,000,000.
by striking 1998 and inserting 2026, (2) by striking $750,000 each place it appears and inserting $3,000,000, and (3) by striking calendar year 1997 and inserting calendar year 2025 in subparagraph (B).
The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 31, 2025.
Section 411 would increase the statutory exclusion limit for qualifying land subject to conservation easements from $500,000 to $2 million, and change the specified applicable percentage from 40% to 60%. It would apply to estates of people dying, and gifts made, after December 31, 2025. The complete eligibility conditions and calculation are not supplied.
Modification of estate tax rules with respect to land subject to conservation easements
Modification of exclusion limitation Subparagraph (B) of section 2031(c)(1) of the Internal Revenue Code of 1986 is amended by striking $500,000 and inserting $2,000,000.
Modification of applicable percentage Paragraph (2) of section 2031(c) of the Internal Revenue Code of 1986 is amended by striking 40 percent and inserting 60 percent.
The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 31, 2025.
Section 501 would double the number of accessible homes otherwise required by the two referenced HUD regulations in housing constructed, altered, or otherwise assisted with money made available to HUD under this bill or its amendments. It would not impose that doubling on all housing generally. The underlying regulations are not supplied, so a specific resulting percentage cannot be determined from this source set.
In the case of housing that is constructed, altered, or otherwise assisted using amounts made available to the Secretary of Housing and Urban Development under this Act or an amendment made by this Act, sections 8.22 and 8.23 of title 24, Code of Federal Regulations (or any successor regulations) shall be applied such that the number of dwelling units required to be accessible under those sections is twice the number that would otherwise be required to be accessible under those sections.
The supplied official-actions snapshot, updated January 28, 2026, records introduction in the House on March 11, 2025, referrals that day to Financial Services, Judiciary, Veterans' Affairs, and Ways and Means, and referral to the Subcommittee on Economic Opportunity on March 27, 2025. This dated snapshot does not establish subsequent action or enactment.
Source snapshot updated 2026-01-28T19:46:34Z. 2025-03-27: Referred to the Subcommittee on Economic Opportunity. 2025-03-11: Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans' Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-03-11: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-03-11. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No clearly unrelated provision or documented policy rider attached to appropriations was identified after reviewing the complete supplied introduced version. Breadth or controversy alone does not establish a rider. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials; amendment attachment history is not supplied.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No recipient- or locality-specific congressional spending earmark was identified after reviewing the complete supplied introduced version. General program funding and competitive or formula allocations do not alone establish earmarks. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials; formal earmark disclosures are not supplied.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The cited findings identify narrow preferences, exemptions, liability protection, grandfathering, and tax treatment. Classification is not a judgment about justification or likely effects; ordinary program coverage and equal-access protections alone are not treated as preferential benefits.
Section 103 would give community partners a special final opportunity to outbid a nonpartner winner in covered mortgage-pool auctions. This is a bidding preference within the housing-preservation policy.
in the case of an auction, if the winning bid is not from a community partner, permitting any community partner that bid during that same auction to have a final opportunity to enter a higher bid on the pool.
the term community partner has the meaning given the term nonprofit organization in section 229 of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4119).
Section 103 would exempt transactions with nonprofit tenants or purchasers from its ban on contract-for-deed, lease-to-own, and land-installment transfers of property securing purchased re-performing loans. This is an organizational exception within the mortgage-sale protections.
Use of contract for deed, lease to own, or a land installment contract to sell or otherwise transfer any property that is secured by a purchased loan shall be prohibited unless the tenant or purchaser is a nonprofit organization.
Section 201 would protect creditors from specified liability when they provide down-payment assistance to an ineligible borrower in good-faith reliance on attestations about first-time and first-generation buyer status. The protection is limited to those eligibility criteria and supports administration of the assistance program.
No additional documentation beyond the borrower’s attestation shall be required to demonstrate eligibility under paragraphs (2) and (3) of subsection (a), and no creditor shall be subject to liability, including monetary penalties or requirements to indemnify a Federal agency or repurchase a loan that has been sold or securitized, for the provision of down payment assistance under this section to a borrower who does not meet the eligibility requirements under those paragraphs if the creditor does so in good faith reliance on borrower attestations of eligibility required by those paragraphs or any regulation promulgated to carry out those paragraphs.
(2) First-generation homebuyer
(3) First-time homebuyer
Section 204 would grandfather a federal credit union's previously approved underserved service area if it had established a service facility before enactment. That area would qualify notwithstanding the new general underserved-area criteria, preserving specified existing service areas within the membership-expansion policy.
notwithstanding subparagraph (A), includes, with respect to any Federal credit union, any geographic area within which the credit union— (i) has received approval to provide service as an underserved area before the date of enactment of this paragraph from the Administration; and (ii) has established a service facility before that date of enactment.
Section 206 would create a temporary, ancestry-based extension of veterans' home-loan eligibility for living first-time, first-generation buyers descended from deceased veterans who served on active duty during the specified 1944–1968 period and never used the covered housing benefit. This is a narrow eligibility expansion within the housing-access policy.
The term veteran also includes, for purposes of home loans, any direct descendant of a veteran described in subparagraph (B) if the descendant— (i) is living on the date of the enactment of the American Housing and Economic Mobility Act of 2025; (ii) is a first-time homebuyer; and (iii) is a first-generation homebuyer.
served on active duty at any time during the period between June 22, 1944, and April 11, 1968; (ii) is deceased; and (iii) did not receive a housing loan benefit under this chapter during his or her lifetime.
the period beginning one year after the date of the enactment of this Act and ending ten years after the date on which the Secretary of Veterans Affairs prescribes the regulations required by subsection (c).
Section 301 would expressly preserve lenders' ability to offer veteran-based loan programs and entities' ability to provide the specified veteran-based housing assistance while adding veteran status to the discrimination provisions. This protects specialized programs for veterans and their providers within the broader fair-housing policy. It does not create a general exemption from all discrimination requirements, and the referenced assistance-program eligibility rules are not reproduced.
by striking sex, each place that term appears and inserting sex (including sexual orientation and gender identity), marital status, source of income, veteran status,
Nothing in this title shall be construed to— (A) prohibit a lender from implementing a loan program for veterans or based upon veteran status; or (B) prohibit an entity from providing housing assistance under— (i) section 8(o)(19) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(19)); (ii) the Homeless Providers Grant and Per Diem program of the Department of Veterans Affairs; or (iii) any other Federal housing assistance program for veterans or based on veteran status.
Section 409 would exempt qualifying wholly charitable trusts from the proposed estate-and-trust income surcharge. The exemption covers trusts whose unexpired interests are all devoted to the purposes referenced in section 170(c)(2)(B), creating a specific exception within the new surcharge. The referenced eligibility provisions are not reproduced, so the full qualifying purposes cannot be determined from the supplied text.
In the case of an estate or trust, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the sum of— (1) 5 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $200,000, plus (2) 3 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $500,000.
Charitable trusts Subsection (a) shall not apply to a trust all the unexpired interests in which are devoted to one or more of the purposes described in section 170(c)(2)(B).
Within the broader estate-tax changes, section 410 would increase a statutory amount governing valuation of certain farm and other real property from $750,000 to $3 million. This is targeted tax treatment for estates with qualifying property; the unreproduced statute limits what can be concluded about exact beneficiaries and savings.
Modification of rules for value of certain farm, etc., real property
Paragraph (2) of section 2032A(a) of the Internal Revenue Code of 1986 is amended by striking $750,000 and inserting $3,000,000.
Section 411 would enlarge preferential estate-tax treatment for estates with qualifying conservation-easement land by increasing the statutory exclusion limit from $500,000 to $2 million and the specified applicable percentage from 40% to 60%. This is property-specific treatment within the estate-tax title. Full eligibility requirements and the complete calculation are outside the supplied text.
Modification of estate tax rules with respect to land subject to conservation easements
Modification of exclusion limitation Subparagraph (B) of section 2031(c)(1) of the Internal Revenue Code of 1986 is amended by striking $500,000 and inserting $2,000,000.
Modification of applicable percentage Paragraph (2) of section 2031(c) of the Internal Revenue Code of 1986 is amended by striking 40 percent and inserting 60 percent.
Full text preserved for this analysis. Legislative record snapshot: Jan 28, 2026. How PlainBill uses AI