Senate Democrats Unveil Infrastructure Plan with Increased Funding for Affordable Housing

A group of nine Senate Democrats, led by Minority Leader Chuck Schumer (D-NY), have unveiled a $1 trillion infrastructure plan that includes measures "to preserve and expand affordable housing in cities, suburbs, rural communities, and on tribal lands through a combination of direct investment and tax incentives.” The Jobs & Infrastructure Plan for America’s Workers proposes $62 billion for affordable housing, neighborhood revitalization and lead remediation, including increased funding for the HOME Program, the Housing Trust Fund, Choice Neighborhoods, CDBG, USDA’s Rural Housing Service rental housing and homeownership assistance programs, and HUD’s Indian Housing Block Grant. The proposal also calls for strengthening the Housing Credit, noting that the Tax Cuts and Jobs Act reduced the number of affordable homes that will be produced with the Housing Credit by an estimated 235,000 units over the next 10 years. The full cost of the plan would be offset by reversing some of the recently enacted tax cuts – most notably, it calls for raising the corporate tax rate from 21 to 25 percent. This plan responds to President Trump’s infrastructure proposal, which was released last month and called for $200 billion in federal funding for infrastructure and sought $1.3 trillion in state, local and private investments, but did not fund housing infrastructure.

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