Trump Nominates Bessent as Treasury Secretary, Turner for HUD
President-elect Donald Trump has nominated Scott Bessent to lead the Treasury Department and Scott Turner as Secretary of Housing and Urban Development (HUD). If confirmed by the Senate, Bessent will oversee the U.S. Department of the Treasury, which includes the Internal Revenue Service (IRS). Bessent, CEO of investment firm Key Square Group, formerly worked for Soros Fund Management.
Turner is a former NFL player who has more experience in political office than Bessent. He served two terms in the Texas House of Representatives representing the 33rd district. In this office, Turner served on the government transparency and operation committee, the government efficiency and reform committee, the human services committee, the select committee on federalism and fiscal responsibility, and the international trade and intergovernmental affairs committee. If confirmed, he will have oversight of all HUD’s programs, including Public Housing, Section 8, and other programs that intersect with the Low-Income Housing Tax Credit (LIHTC) program.
IRS Priorities Under a Second Trump Presidency
The nomination of Scott Bessent as Secretary of the Treasury could bring significant changes to the IRS and its administration of the LIHTC program. Bessent has been vocal about his views on fiscal policy, describing the Inflation Reduction Act as a “doomsday machine for the budget.” The Inflation Reduction Act allocated substantial funds to the IRS to enhance enforcement. Trump’s administration may seek to reallocate or reduce this funding, potentially shifting the agency’s focus and resources.
Bessent’s focus on deficit reduction and suggestions to repeal or limit certain tax credits to offset the costs of extending tax cuts indicate a possible shift in policy direction. Under his leadership, the IRS might prioritize stricter oversight and reevaluation of existing tax credit programs to ensure they align with fiscal responsibility goals. Overall, Bessent’s nomination signals a potential move toward fiscal conservatism, which may influence how the IRS manages tax credit programs, including LIHTC.
Along with his nomination of Bessent, Trump has announced that he intends to appoint Billy Long, who served as the U.S. representative for Missouri’s 7th congressional district from 2011 to 2023, to serve as the next IRS Commissioner. Long is known for his conservative stance and advocacy for small businesses. His background includes work as an auctioneer and business advisor, with limited direct experience in tax administration. Long’s conservative approach and emphasis on reducing federal regulations could influence the administration of various tax credit programs, including LIHTC.
HUD’s Prospects Under a Second Trump Presidency
If confirmed, Scott Turner will enter the role of HUD Secretary at a time when housing affordability is a growing concern. Trump’s campaign talked about addressing high housing costs, though much of his rhetoric was based on the premise of a clampdown on illegal immigration and inflation rather than affordable housing policies. One theme that has been evident throughout Trump’s first presidency and campaign is budget austerity, which could spell deep cuts for HUD funding.
In his first presidency, cuts to HUD’s budget met resistance in Congress, which, for example, has kept core programs like Section 8 housing vouchers and public housing intact. But a second term is expected to bring even more fiscal conservatism. Any budget cuts will grow wait lists and further squeeze the tightening affordable housing market.
HUD policy in the second presidency may experience potential influence by Project 2025. This is a published policy blueprint from the Heritage Foundation, a conservative think tank, working in concert with more than 100 organizations. It lays out a roadmap for a future conservative U.S. president to take the lead in restructuring many facets of federal agencies and policies and reforming the federal government while solidifying executive power. It includes a chapter on housing policy by former HUD Secretary Ben Carson, who led the agency from 2017 to 2021. This section may lay the groundwork for projects that Turner might build on, such as nurturing public-private partnerships and revisiting various regulations. The Project 2025 housing proposals include:
- A ban on families with undocumented members from living in federally assisted housing. Undocumented immigrants are already barred from receiving subsidies.
- Repealing again the Affirmatively Furthering Fair Housing rule, which mandates that local governments address segregation and promote fair housing.
- Ending Housing First policies, which places people in subsidized housing without preconditions. The focus would instead be on programs that encourage self-sufficiency and having sobriety be the first requirement.
- Implementing time limits and work requirements for people who receive federal housing subsidies.
Senate Confirmation Process
The Senate confirmation hearings for all three men are expected in January 2025. The Senate Committee on Banking, Housing, and Urban Affairs will assess Turner’s suitability for leading HUD. And the Senate Finance Committee will conduct hearings to evaluate Bessent and Long’s qualifications and views on economic policy.
Given his background as a hedge fund manager and advocate for deficit reduction and deregulation, senators will probably examine Bessent’s stance on tariffs and fiscal policy. And the committee will seek Long’s perspectives on tax administration and enforcement.
Following the hearings, each committee will vote to recommend the nominee favorably, unfavorably, or without recommendation to the full Senate. The full Senate will debate each nomination. A simple majority vote is required for confirmation.
