Congress Passes Short-Term Government Funding Bill, Preventing Shutdown
On Thursday, Congress managed to avert a potential government shutdown. The U.S. Senate advanced a short-term funding extension bill, referred to as a continuing resolution (CR), with a vote margin of 77-18. This CR extends funding at current levels for specific federal agencies, such as HUD and USDA, until March 1, and for the remaining agencies, until March 8. Later Thursday in the U.S. House of Representatives, the bill secured passage with a vote of 314-108 margin. The bill was subsequently signed into law by President Biden on Friday. This marks the third short-term CR Congress has passed since September. Leaders in Congress had reached an agreement on full-year spending levels in early January; so, this CR was essential to provide lawmakers with additional time to transform that agreement into legislative text and passage through both chambers of Congress.
House Ways and Means Committee Advances Bipartisan Tax Package
Today, the U.S. House Ways and Means Committee advanced the bipartisan tax legislation titled “The Tax Relief for American Families and Workers Act of 2024” (H.R. 7024). This legislation includes two provisions related to the Low-Income Housing Tax Credit (LIHTC): the restoration of the 12.5% allocation increase for 2023–2025 and the reduction of the 50% bond financing threshold to 30% for 2024–2025. According to an analysis conducted by Novogradac, the combined impact of these provisions is estimated to facilitate the financing of over 200,000 additional affordable homes.
The Ways and Means Committee demonstrated strong bipartisan support for this legislation, as it was approved by a 40-3 vote margin. The next legislative steps involve a final vote by the full U.S. House of Representatives later this month. Upon approval by the House, the legislation will proceed to the U.S. Senate for consideration and approval in the Senate Finance Committee, followed by a vote by the full Senate. While there are still procedural hurdles to overcome, this represents a significant legislative advancement and bodes well for the final enactment of the law. Special thanks to NAHMA members for their advocacy, as their support may be needed again in the future. Stay tuned for further updates!