Make Housing Affordable and Defend Democracy Act

Bill Number: H.R. 6390
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Taxation
Status: Introduced
Latest Action: 2025-12-04: Referred to the Subcommittee on Border Security and Enforcement.
Last Updated: 2026-05-16T08:07:04Z

AI-Generated Summary

Purpose of the Legislation

The "Make Housing Affordable and Defend Democracy Act" (H.R. 6390) aims to redirect federal resources by canceling (rescinding) over $175 billion in previously allocated funds for immigration enforcement and border security activities. It also introduces new tax incentives in the Internal Revenue Code to make housing more accessible, particularly for first-time buyers, renters, and low-income households, while encouraging the construction and conversion of affordable housing units.

Key Provisions

Rescission of Immigration Enforcement Funds (Section 2):
Permanently cancels unobligated (unused) balances totaling $175,660,630,000 from funds provided under Public Law 119-21 (a prior reconciliation act).
Targets specific areas, including:
$46.55 billion for border infrastructure and wall systems.
$45 billion for detention capacity.
$29.85 billion for U.S. Immigration and Customs Enforcement (ICE) hiring and training.
$10 billion each for state/local border assistance, Department of Homeland Security border support, and other enforcement activities.
Smaller amounts for Department of Defense border missions ($1 billion), Customs and Border Protection (CBP) personnel/vehicles/facilities ($12 billion total), technology/screening ($6.17 billion), Department of Justice ($3.33 billion), Bureau of Prisons ($5 billion), and Operation Stonegarden grants ($450 million).
Repeals sections 100001–100018 of Public Law 119-21, which established new immigration-related fees.
These rescissions reduce available funding for border security, detention, personnel bonuses, training, and related law enforcement.

First-Time Homebuyer Credit (Section 3):
Replaces the existing Section 36 of the Internal Revenue Code with a new non-refundable tax credit of up to $25,000 for qualified home purchase expenses (down payments and closing costs) on a principal residence (main home) bought in the U.S.
Doubles to $50,000 for "first-generation homebuyers" (individuals who aged out of foster care, were emancipated from parents, or whose parents never owned a majority interest in a home).
Increases the credit amount by 3.5% of the excess conforming loan limit in high-cost areas (as defined by federal mortgage standards).
Income phase-out: Starts reducing above $150,000 (single), $225,000 (head of household), or $300,000 (joint filers), fully phasing out at $100,000 above those thresholds.
Exclusions: No credit for nonresident aliens, if the home is sold or stops being principal within the year, or if claimed improperly.
Allows advance payments into an escrow account for down payments/closing costs, with recapture (repayment) if the home is sold, leased, or stops being principal within 5 years (exceptions for death, divorce, military duty, or buying a new primary home).
Definitions: "First-time homebuyer" means no ownership interest in a principal residence in the prior 10 years and no prior credit claimed; purchase must involve a commercial mortgage (not from relatives or inheritance).
Applies to homes bought in tax years after enactment; amounts adjust for inflation after 2025.

Starter Home Construction Credit (Section 4):
Adds new Section 45BB, a business tax credit equal to 15% of qualified construction costs (labor and materials) for "starter homes" up to 1,200 square feet and priced at no more than 80% of the area's median home price.
Doubles to 30% if sold to a first-time homebuyer.
State allocation: $30 per capita (population-based), distributed by state housing agencies; unused amounts reallocated to high-demand states; reduces allocations if occupancy certificates aren't issued.
Tribal allocation: Similar per capita formula for Indian Tribal Governments, with a minimum of $30 million or the lowest state amount.
Part of the general business credit; basis in property reduced by credit amount; applies to homes placed in service after enactment.

Affordable Housing Conversion Credit (Section 5):
Adds new Section 48F, an investment tax credit of 20% on qualified conversion costs (capital expenditures for depreciable property) to turn eligible commercial buildings (non-residential, at least 20 years old) into affordable housing.
Requires conversions to exceed the greater of $100,000 or 50% of the building's prior adjusted basis (original cost minus depreciation); costs limited to a 2-year window (extendable for long projects).
"Qualified affordable housing building": At least 20% of units rent-restricted (below market rate) and reserved for households at 80% or less of area median income for 30 years.
Higher rates: 30% in qualified census tracts/difficult development areas (low-income or high-cost zones) if 20% of units for 60% or less of median income; up to 35% for historic preservations in rural areas (capped at $2 million in costs).
State allocation: National limit of $12 billion, prorated by population; extra $3 billion for economically distressed areas; reallocates unused funds after 2028 to high-demand states.
Requires state agency plans prioritizing feasibility, location near jobs/transport, economic revitalization, and monitoring for compliance; allows transferability of credits.
Recapture if affordability fails within 30 years; applies to buildings placed in service after enactment.

Low-Income Housing Tax Credit (LIHTC) Boost (Section 6):
Amends Section 42(d)(5) to increase the "eligible basis" (amount qualifying for the credit) by 50% (to 150%) for buildings where 20% or more units are designated for extremely low-income households (30% of area median gross income or federal poverty line).
Requires state housing agency designation for financial feasibility; applies to new allocations or bond-financed projects after enactment (or bonds issued after December 31, 2025).

Renter Tax Credit (Section 7):
Adds new Section 36C, a non-refundable credit for rent exceeding 30% of adjusted gross income (AGI) on a principal residence, up to 100% of the small area fair market rent (HUD-published local rent standard, including utilities).
Credit percentage: 100% of excess for AGI ≤ $25,000; phases down to 0% above $100,000 (adjusted for inflation; prorated for partial-year renters or married filing separately).
Allows monthly advance payments elected on prior-year returns; reconciled on tax return.
Appropriates $50 million for IRS outreach, data sharing, and partnerships with states/tribes to enroll eligible renters (available for 5 years).

Significant Changes to Existing Law

Immigration Funding: Introduces permanent rescissions and repeals from Public Law 119-21, reducing or eliminating dedicated funds for border wall, detention, personnel, and enforcement—reversing prior allocations without creating new spending offsets.
Tax Code Amendments:
Revives and expands the expired first-time homebuyer credit (last active in 2010) with higher amounts, broader eligibility, and advance options.
Creates entirely new credits (Sections 45BB, 48F, 36C) modeled on existing housing incentives like LIHTC (Section 42) but targeted at construction, conversions, and renters.
Enhances LIHTC by boosting basis for extremely low-income units, similar to prior "basis boosts" for certain areas but newly focused on poverty-level households.
Adds advance payment mechanisms (like those for premium tax credits) and transferability for the conversion credit, increasing flexibility for developers and low-income filers.

Potential Impacts

Government Agencies: Significantly cuts budgets for Department of Homeland Security (DHS), CBP, ICE, Department of Justice (DOJ), and Department of Defense (DOD) border activities, potentially limiting operations, hiring, and infrastructure. Increases IRS workload for administering new credits, reporting, and outreach (with dedicated funding). State housing agencies gain allocation authority but face compliance monitoring duties.
Citizens: Lowers barriers to homeownership and renting for first-time/low-income individuals via direct credits (up to $50,000 for buyers, variable for renters), potentially increasing housing affordability and supply. Developers may prioritize small/affordable units, benefiting underserved communities, but recapture rules could deter short-term flips.
International Relations: Reduced border enforcement funding may slow migrant processing/detention, influencing U.S.-Mexico relations and migration flows, though no direct foreign policy changes.

Main Stakeholders Affected

Federal Agencies: DHS, CBP, ICE (reduced enforcement capacity); DOJ and Bureau of Prisons (less funding for immigration-related incarceration); IRS (new credit administration); HUD (data for rent standards).
Citizens and Households: First-time homebuyers (especially first-generation, foster youth, low-income); renters paying high rent relative to income; low-income families via LIHTC expansions.
Businesses and Developers: Homebuilders (starter credit incentives); real estate investors converting commercial properties; state/tribal housing agencies (allocation roles).
State/Local/Tribal Governments: Gain tools for affordable housing but lose some border assistance grants; tribes receive dedicated credits.
Immigration Advocates/Enforcement: Opposing groups—those favoring reduced enforcement benefit from rescissions; security-focused stakeholders face funding cuts.

Notable Legal, Constitutional, or Political Implications

Legal: Rescissions comply with congressional budgeting authority but could trigger Impoundment Control Act challenges if executive branch resists implementation. New credits require IRS regulations for definitions (e.g., "first-generation homebuyer" certifications) and anti-abuse rules; 30-year affordability commitments in conversions may lead to compliance disputes.
Constitutional: Balances congressional power of the purse (rescissions) against executive immigration enforcement; no direct separation-of-powers issues, but could invite lawsuits over funding cuts impairing national security duties.
Political: Ties housing affordability (progressive priority) to immigration defunding (contentious issue), potentially polarizing Congress—introduced by a diverse bipartisan group but referred to multiple committees (Ways and Means, Armed Services, Homeland Security, Judiciary) for review. Inflation adjustments and outreach funding aim for long-term equity, but high costs ($175B+ rescinded, new credits with national caps) may spark deficit/debt debates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Gomez, Jimmy [D-CA-34]

Cosponsors (79)

Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Carter, Troy A. [D-LA-2], Rep. Salinas, Andrea [D-OR-6], Rep. Garcia, Robert [D-CA-42], Rep. Sherman, Brad [D-CA-32], Rep. Thompson, Mike [D-CA-4], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Goldman, Daniel S. [D-NY-10], Rep. Garcia, Sylvia R. [D-TX-29], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Ansari, Yassamin [D-AZ-3], Rep. Ruiz, Raul [D-CA-25], Rep. Rivas, Luz M. [D-CA-29], Rep. Thanedar, Shri [D-MI-13], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Davis, Danny K. [D-IL-7], Rep. Sánchez, Linda T. [D-CA-38], Rep. Carson, André [D-IN-7], Rep. Vargas, Juan [D-CA-52], Rep. Carbajal, Salud O. [D-CA-24], Rep. Chu, Judy [D-CA-28], Rep. Matsui, Doris O. [D-CA-7], Rep. Lieu, Ted [D-CA-36], Rep. Wasserman Schultz, Debbie [D-FL-25], Rep. Beatty, Joyce [D-OH-3], Rep. Jackson, Jonathan L. [D-IL-1], Rep. Jacobs, Sara [D-CA-51], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Swalwell, Eric [D-CA-14], Rep. Evans, Dwight [D-PA-3], Rep. Liccardo, Sam T. [D-CA-16], Rep. Simon, Lateefah [D-CA-12], Rep. Lee, Summer L. [D-PA-12], Rep. McGovern, James P. [D-MA-2], Rep. Ramirez, Delia C. [D-IL-3], Rep. Dexter, Maxine [D-OR-3], Rep. Mullin, Kevin [D-CA-15], Rep. Leger Fernandez, Teresa [D-NM-3], Rep. McIver, LaMonica [D-NJ-10], Rep. Menendez, Robert [D-NJ-8], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Cohen, Steve [D-TN-9], Rep. Titus, Dina [D-NV-1], Rep. Randall, Emily [D-WA-6], Rep. Veasey, Marc A. [D-TX-33], Rep. Peters, Scott H. [D-CA-50], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Pocan, Mark [D-WI-2], Rep. Nadler, Jerrold [D-NY-12], Rep. Kelly, Robin L. [D-IL-2] and 29 more

Recent Actions

2025-12-04: Referred to the Subcommittee on Border Security and Enforcement.
2025-12-03: Referred to the Committee on Ways and Means, and in addition to the Committees on Armed Services, Homeland Security, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-12-03: Referred to the Committee on Ways and Means, and in addition to the Committees on Armed Services, Homeland Security, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-12-03: Referred to the Committee on Ways and Means, and in addition to the Committees on Armed Services, Homeland Security, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-12-03: Referred to the Committee on Ways and Means, and in addition to the Committees on Armed Services, Homeland Security, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-12-03: Introduced in House
2025-12-03: Introduced in House

Bill Versions

Make Housing Affordable and Defend Democracy Act — issued 2025-12-03 — PDF (54 pages)