In committee
Make Housing Affordable and Defend Democracy Act
This legislation rescinds roughly $175.7 billion in federal funding previously designated for border wall construction, immigration detention beds, and border agency staffing and equipment. In turn, it creates a refundable tax credit of up to $25,000 for first-time homebuyers—and up to $50,000 for first-generation buyers—which can be transferred directly to escrow to cover down payments and closing costs. The bill also provides an advanceable monthly tax credit for low- and middle-income renters paying over 30 percent of their income in rent, while establishing tax credits for developers who construct small starter homes or convert older commercial buildings into affordable housing.
People affected—Not determinable from the text provided; applies broadly to nationwide populations of renters paying over 30% of income in rent, first-time and first-generation homebuyers, and residential developers, but does not provide precise eligibility counts.
Fiscal magnitude—no CBO estimate published
Reach85provisional · pending reviewrigor: heuristic llm
What this bill touches.
Spending vs. restraint−45Sentencing & corrections+45Overall tax level−55Land use & zoning−45Native American affairs+35Renters & rent+50Enforcement & security+75
Who it helps · who it burdens.
Who it helps
- first-time homebuyersEligible for a tax credit of up to $25,000 (or up to $50,000 for first-generation buyers) for down payment and closing costs, which can be disbursed in advance directly to an escrow account at purchase (Sec. 3(a)).
- rent-burdened tenantsEligible for a refundable tax credit (available in advance monthly payments) if rent and utilities exceed 30% of adjusted gross income, capped at local small area fair market rents (Sec. 7(a), (b)).
- starter home builders and developersEligible for a tax credit covering 15% of construction costs (30% if sold to first-time homebuyers) for new homes under 1,200 square feet priced at or below 80% of the area median home price (Sec. 4(a)).
- commercial property owners and developersEligible for a transferable tax credit covering 20% to 35% of conversion costs when converting commercial buildings into residential housing with at least 20% of units rent-restricted for 30 years (Sec. 5(a), (b)).
- affordable housing developersReceive an increase in their Low-Income Housing Tax Credit basis for projects reserving at least 20% of units for households at or below 30% of area median income or the poverty line (Sec. 6(a)).
- immigration applicants and petitionersRelieved of paying recently enacted statutory immigration fees due to their explicit repeal (Sec. 2(q)).
- Internal Revenue ServiceReceives $50 million in appropriations over five years for systems development, community outreach, and cross-enrollment efforts for the renter tax credit (Sec. 7(e)).
Who opposes it
- federal border security and immigration enforcement agenciesPermanently loses over $150 billion in unobligated appropriations for border wall construction, personnel hiring and bonuses, detention beds, vehicles, and facilities (Sec. 2(b)–(i), (k)–(n), (s)).
- state and local law enforcement agenciesLoses access to funding due to the permanent rescission of $10 billion for the State Border Security Reinforcement Fund and $450 million for the Operation Stonegarden Grant Program (Sec. 2(j), (r)).