As we close out the first quarter of the year, several key policy developments at the federal and state levels are shaping the landscape for community reinvestment, affordable housing, and public transit. Here’s what you need to know:
Federal Updates
Government Shutdown Averted
Lawmakers successfully passed a short-term funding measure, preventing a government shutdown, keeping agencies operational — and additional spending towards military and border. However, long-term funding negotiations remain contentious, with housing and community development programs at risk of cuts. We will continue monitoring these discussions for potential impacts.
Tax Extenders Package, LIHTC Expansion and Neighborhood Home Investment Act
A bipartisan tax package is expected to be introduced soon, including long-awaited enhancements to the Low-Income Housing Tax Credit (LIHTC) through the Affordable Housing Credit Improvement Act (AHCIA). Passed last Congress in the House, this would mark the first significant expansion since 1986, addressing critical financing gaps for affordable housing projects. We expect it to be introduced next week. The Neighborhood Homes Investment Act (NHIA) may also be included and aims to provide tax credits to develop and rehabilitate owner-occupied homes in underserved communities, bridging investment gaps where market forces alone fall short.
Community Reinvestment Act (CRA) Rollback Efforts
The Trump Administration is pushing to roll back the updated CRA rule finalized in 2023, potentially weakening regulatory oversight and reducing lending and investment obligations for financial institutions. Read our statement here.
CDFI Fund and Treasury Response
In response to a Trump executive order, the U.S. Treasury recently sent a letter to the Office of Management and Budget (OMB), emphasizing the critical role of the Community Development Financial Institutions (CDFI) Fund. This underscores growing concerns about potential funding cuts or policy shifts that could hinder support for nonprofit, mission-driven lenders.
State Updates
Tracking Housing Legislation
State legislatures across the country are actively considering housing-related bills affecting affordability, development incentives, and tenant protections. Stay informed with PCRG’s Legislative Tracker, which provides updates on key bills moving through Harrisburg.
Public Transit in crisis
Public transit advocates and agencies across Pennsylvania are raising alarms about funding shortfalls. While Gov. Josh Shapiro has called for increased transit funding, it remains insufficient to bridge existing gaps. Pittsburgh Regional Transit (PRT) faces a $100 million shortfall, which could lead to significant service cuts, fare increases, and delays in infrastructure projects. Without new funding solutions, these disruptions will disproportionately impact low-income and transit-dependent communities. PCRG is partnering with advocacy groups like Pittsburghers for Public Transit to amplify this crisis and push for increased state investment during budget negotiations.
PCRG remains committed to advocating for policies that support equitable community development, housing affordability, and accessible public transit. Stay engaged and follow our updates for ways to take action!