LIHTC Expansion Bill Reintroduced in U.S. Senate

By: Gabriel Smith, Legislative Affairs Manager

April 30, 2025—On April 29, Senators Maria Cantwell (D-WA) and Todd Young (R-IN), senior members of the Senate Finance Committee, reintroduced the Affordable Housing Credit Improvement Act (AHCIA) in the U.S. Senate. This bipartisan bill has 30 total original cosponsors from both sides of the aisle and has strong support in the Senate as well as the U.S. House of Representatives.

If passed, this bill would call for key improvements to the low-income housing tax credit (LIHTC) and will support financing of nearly 2 million affordable new homes by:

• Raising the number of credits allocated to each state by 50%
• Reducing the 50% test for private-activity bond homes to 25%
• Improve the LIHTC program to serve at-risk and underserved groups such as veterans, victims of domestic violence, and Americans in rural areas

“Housing inflation is up 4% over the past year nationally and 4.5% in the Pacific Northwest-and that was before homebuilders reported an additional 5.5% increase in costs due to tariffs this year. We need to do more to lower housing costs for everyone. Expanding the Low-Income Housing Tax Credit will do just that by making it more affordable to build homes and lower rents,” Sen. Cantwell said upon passage.

NAHRO Legislator of the Year Sen. Ron Wyden (D-OR) and original cosponsor said this about the bill, “It’s time for Congress to meet the housing crisis with the bold solutions it demands and that starts with increasing housing supply. Our bill will deliver some much-needed relief to families by supporting existing, successful federal housing programs and building over one million new units of affordable housing.”

Now the bicameral AHCIA bills moving through the House and Senate. NAHRO will continue to track the status of the twin bills as they move through Congress and will keep you updated on how you can advocate for their passage and critical LIHTC expansion.