How Trump’s Tax Law Will Deepen Housing Insecurity (July 25, 2025 )
July 25, 2025 — The new budget reconciliation law provides a marginal 12 percent increase in Low Income Housing Tax Credit (LIHTC) allocations and permanent funding for Opportunity Zones, but these modest gains are overshadowed by historic cuts to the social safety net.
Massive reductions in funding for Medicaid, Medicare, and food assistance create significant income burdens for low-income renters, who are increasingly forced to prioritize rent over health care and groceries. Furthermore, the elimination of the Greenhouse Gas Reduction Fund and other climate-related tax credits is projected to drive up utility bills by as much as 10 percent, exacerbating the risk of eviction and foreclosure for vulnerable households. Compounding these issues, the proposed Transportation, Housing and Urban Development (T.H.U.D.) bill threatens to defund public housing stock and reduce the availability of Housing Choice Vouchers, potentially stripping hundreds of thousands of families of housing assistance. This legislative landscape effectively hollows out fair housing enforcement by eliminating critical initiative programs and leaves state governments to manage a deepening affordability crisis with insufficient resources.
| https://shelterforce.org/2025/07/25/how-trumps-tax-law-will-deepen-housing-insecurity/ |