American Housing and Economic Mobility Act of 2025
American Housing and Economic Mobility Act of 2025
Plain Language Summary
# American Housing and Economic Mobility Act of 2025 - Summary **What the Bill Would Do** This bill aims to address housing affordability and availability by providing federal grants and funding to help more Americans—especially lower-income individuals—buy homes or access affordable rentals. It would give money to state and local governments to remove obstacles to building affordable housing, help homeowners struggling with underwater mortgages (owing more than their home is worth), support construction of affordable rental properties, and provide grants to first-time homebuyers.
The bill also funds rural housing programs and includes changes to estate taxes that would increase the tax rate on large inheritances. **Who It Affects** The bill primarily affects lower-income individuals and first-generation homebuyers seeking to purchase their first homes, renters at risk of displacement, and communities with housing shortages. It also impacts state and local governments that would receive grants to address housing barriers, and potentially wealthy individuals through proposed estate tax changes. **Current Status** The bill (HR 2038) was introduced in the 119th Congress by Representative Emanuel Cleaver (D-Missouri) and is currently in committee, meaning it has not yet been voted on by the full House of Representatives.
CRS Official Summary
American Housing and Economic Mobility Act of 2025This bill addresses housing affordability and availability through grants, housing programs, and oversight of financial institutions. The bill also makes certain changes to the estate tax, such as by generally increasing the rate.The Department of Housing and Urban Development shall provide grants to (1) state, local, and tribal governments to remove barriers to building affordable units, (2) states to assist borrowers who have negative equity in their homes, (3) state housing finance agencies to support construction of affordable rental housing and prevent tenant displacement and harassment, and (4) eligible individuals (generally, lower income individuals who are first generation homebuyers) to help them purchase their first homes.The bill establishes and provides funding for the first-time homeowner grant program and the affordable rental housing construction program, and it also funds existing rural housing programs.The bill also requires financial regulators to generally assess the effectiveness of financial institutions in meeting the credit and lending needs of their communities, particularly of underserved populations. The bill also expands fair housing protections to prohibit discrimination based on sexual orientation, gender identity, marital status, source of income, veteran status, or an individual's perceived membership in a protected class (e.g., an individual's perceived race or sex).Additionally, the bill modifies the estate tax in various ways, including by reducing the number of brackets to three, increasing the tax rates, and reducing the basic exemption amount. The bill also places additional taxes on high-income estates and trusts.
Latest Action
Referred to the Subcommittee on Economic Opportunity.