In committee
American Affordability Act of 2025
This legislation expands federal tax relief and direct financial support for families, workers, renters, and homebuyers. It establishes monthly cash payments of up to $360 per child for parents, creates refundable tax credits for rent and first-time home purchases, and permanently increases health insurance subsidies under the Affordable Care Act. The bill also provides tax credits to fund affordable housing construction, family caregiving, child care startups, disaster-proofing home upgrades, and clean energy development.
People affected—Not determinable from the text provided; the bill broadly alters tax rules and benefits for millions of households, renters, homebuyers, taxpayers with children, and health insurance beneficiaries, but does not provide an aggregate population count.
Fiscal magnitude—no CBO estimate published
Reach88provisional · pending reviewrigor: heuristic llm
What this bill touches.
Childcare & leave+60Collective bargaining+30Elder & long-term care+45Public works+50College cost & debt+55Government role in coverage+60Overall tax level−65Land use & zoning−55Energy sources+60Welfare & anti-poverty+75Greenhouse-gas policy+65Native American affairs+35Renters & rent+55
Who it helps · who it burdens.
Who it helps
- Families with childrenReceives monthly advance child allowances of up to $360 per child under 6 and $300 per child aged 6–17 (replacing the annual Child Tax Credit), an expanded Child and Dependent Care Credit up to $16,000 of expenses, and higher pretax dependent care assistance caps under Sec. 31001, Sec. 32001, and Sec. 32002.
- Renters paying high housing costsEligible for a refundable, monthly advanceable tax credit when rent exceeds 30 percent of adjusted gross income under Sec. 13002.
- First-time homebuyersEligible for a refundable first-time homebuyer tax credit of up to $10,000–$15,000 that can be transferred directly to mortgage lenders at closing to reduce purchase costs under Sec. 13001.
- Affordable housing developers and property ownersBenefit from increased state LIHTC allocation caps, 30 percent basis boosts for extremely low-income, rural, and tribal developments, flexible average-income occupancy tests, and the creation of the Middle-Income Housing Tax Credit and commercial-to-residential conversion credits under Sec. 11101, 11201, 11307, 11402, 11501, 12001, and 12005.
- Clean energy and transmission project developersBenefit from the restoration and extension of clean electricity production and investment tax credits, hydrogen production credits, accelerated 5-year depreciation, and new credits for high-capacity transmission lines and advanced battery manufacturing under Sec. 21001, 21002, 21005, 22004, 24006, and 24007.
- Health insurance policyholders and ACA marketplace enrolleesReceive permanent elimination of the 400 percent federal poverty line cap for ACA premium tax credits, enhanced cost-sharing reductions covering up to 99 percent of allowed costs for lower-income tiers, and a freeze on annual maximum out-of-pocket limits under Sec. 50001, Sec. 50002, and Sec. 50003.
- Higher education students and student loan borrowersReceive permanent gross income exclusions for discharged postsecondary student loans, repeal of the income phaseout on the student loan interest deduction, and expanded American Opportunity Tax Credits under Sec. 41001, Sec. 41005, and Sec. 41006.
- Union members and service workersGain an above-the-line deduction for union dues, restored miscellaneous itemized deductions for unreimbursed employee expenses exceeding 2 percent of AGI, permanent tip deductions including automatic gratuities, and expanded overtime deductions under Sec. 42002, Sec. 42003, and Sec. 42004.
- Family caregiversEligible for a nonrefundable tax credit of up to $5,000 covering 30 percent of qualifying out-of-pocket expenses for assisting relatives with long-term care needs under Sec. 32003.
Who it burdens
- Foreclosure buyers of affordable housing propertiesMust provide 60 days notice to the IRS and state housing credit agencies prior to terminating 30-year extended affordability agreements following property foreclosure under Sec. 11310.
- Private health insurance issuers and group health plansRequired to cover CDC-recommended vaccines without patient cost-sharing through 2029 based on ACIP recommendations in effect as of October 25, 2024, regardless of subsequent recommendation revocations, under Sec. 50004.
- State housing credit allocation agenciesRequired to evaluate project development cost reasonableness, establish concerted community revitalization criteria, incorporate tribal housing needs, and prohibited from conditioning credit allocations on local official approvals under Sec. 11305, Sec. 11306, Sec. 11312, and Sec. 11401.
Who opposes it
- Metallurgical coal producersExcluded from the section 45X advanced manufacturing production tax credit by removing metallurgical coal from the definition of applicable critical minerals under Sec. 21003.