Treasury Secretary Bessent Vague on LIHTC Expansion
The U.S. Senate has confirmed Scott Bessent as Treasury Secretary by a 68 to 29 vote, with 16 Democrats voting in favor of making him the nation’s 79th treasury secretary. The votes place him at the center of key fiscal policies, including tax reform, deficit management, and investment oversight. Affordable housing advocates are closely watching how Bessent’s leadership will influence the LIHTC program. During his confirmation hearings, Bessent was questioned on LIHTC and the administration’s broader housing policy.
What you need to know: The LIHTC program enjoys broad bipartisan support, with lawmakers pushing for its expansion through legislation such as the Affordable Housing Credit Improvement Act. However, with tax reform on the horizon, housing advocates are concerned about potential changes to the program’s structure and incentives.
During his confirmation hearing, Senator Cantwell asked, “Will you commit to working with my colleagues across the aisle and myself to help lower housing costs and increase supply through programs such as the Low-Income Housing Tax Credit? If confirmed, will you use your authority as Secretary of the Treasury to streamline the approval of credits through Treasury and IRS guidance so that communities can build a greater number of affordable homes?”
In response, Bessent expressed general support for housing-related tax incentives but stopped short of committing to specific expansions or improvements. He said, “President Trump is committed to the extension of TCJA [the Tax Cuts and Jobs Act], and if confirmed, I look forward to working with Congress to incorporate proposals that will have a positive impact on hardworking Americans. Specifically, if confirmed, I commit to working with the Congress to implement President Trump’s agenda and make housing more affordable for American families.” This response left some uncertainty about whether the administration will prioritize LIHTC enhancements or focus solely on broader tax policy objectives.
What’s next: The Trump administration is pushing for an extension of the Tax Cuts and Jobs Act. This potential upcoming tax legislation may present an opportunity to strengthen LIHTC, but it will require a bipartisan push.
