On Friday, July 4th, President Trump signed the “One Big Beautiful Bill Act” (H.R. 1)—a sweeping budget reconciliation package that includes the most substantial expansion of federal affordable housing resources in 25 years. The bill passed narrowly 217–214, with all Democrats and two Republicans voting no, and mirrors the version approved by the Senate.

This legislation is a generational victory for affordable housing—and Texas stands to gain more than nearly any other state.

What’s in the “One Big Beautiful Bill”?

The Housing Credit provisions in the reconciliation bill include two long-sought reforms:

• A permanent 12% increase in 9% LIHTC allocations, beginning in 2026
• A permanent reduction in the 50% bond financing threshold to 25% for properties placed in service after December 31, 2025—provided at least 5% of land and building costs are financed with bonds issued after that date.