The latest news on infrastructure and our Annual Convening Recap

The latest news on infrastructure and our Annual Convening Recap
We wanted to update you on the very fluid status of ongoing discussions regarding infrastructure legislation, and also to provide you with a report on the Virtual Convening co-hosted by the Housing Advisory Group and the Affordable Housing Tax Credit Coalition on June 9th.
Infrastructure Negotiations

Following the breakdown of infrastructure negotiations between Senator Shelly Moore Capito (R-WV) and the White House, a bipartisan group of Senators, sometimes referred to as the G-20, stepped up to try to craft a compromise. A subset of that group, led by Senators Kyrsten Sinema (D-AZ) and Rob Portman (R-OH), continued to work on a framework for a bipartisan plan, and on June 16th, a bipartisan group of twenty Senators – ten Republicans, nine Democrats and one independent — released a statement in support of the framework. Since then, another Republican Senator has come on board.

The $1.2 trillion package provides $579 billion in new spending focused primarily on traditional “core” infrastructure. Proposed financing sources include, among others, using repurposed unused COVID-19 funds, reducing the tax gap, and an annual surcharge on electric vehicles. The plan includes a provision to index the gas tax as a placeholder, pending an alternative non-tax proposal from the Administration. The framework also includes provisions covering municipal bonds and private activity bonds, but details on those provisions are not specified.

The bipartisan group now is discussing the framework with colleagues, the Administration, and the House Problem Solvers Caucus – a bipartisan group that released its own framework to help break the gridlock on the infrastructure negotiations.

On a separate track, House and Senate Democratic leaders are putting in motion plans to use budget reconciliation to advance a robust package that likely will include a number of the President’s priorities – including infrastructure. Reconciliation is especially important in the Senate because it allows a bill to advance by a simple majority rather than requiring the 60 votes generally needed to advance legislation.

In this very fluid environment, it is hard to predict whether the Affordable Housing Credit Improvement Act will be included in a final bipartisan infrastructure package or the extent to which it can be in a larger reconciliation bill. With its carefully vetted provisions and strong bipartisan support, we believe it is well-positioned for both. But we need to keep doing our job to secure cosponsors to help our champions make the case for inclusion. Please continue your good work in contacting Members of Congress, and let us know if we can help. Please make use of the advocacy tools on the ACTION Campaign website and let us know if we may be helpful in any way. The legislative period between now and the scheduled August recess may predict the results of our efforts and the contents of an infrastructure package.

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