American Affordability Act of 2025

H.R. 6900, introduced by Rep. Mike Thompson (D-CA) with 45 cosponsors on December 18, 2025, was referred to the Ways and Means, Education and Workforce, and Energy and Commerce committees. The bill amends the Internal Revenue Code of 1986, focusing on expanding the Low-Income Housing Tax Credit (LIHTC) with reforms to state allocation formulas, tenant eligibility rules, and credit determination. At this early stage (referred to committee, no hearings scheduled as of analysis date May 28, 2026), the bill has zero funding authorization — it modifies tax credit allocation formulas but does not appropriate any direct spending. LIHTC is a tax expenditure that reduces federal revenue, not an outlay, so the fiscal impact would be captured through the JCT score, not an appropriations bill.

The money trail is indirect: state housing agencies allocate increased LIHTC authority, which reduces the cost of capital for affordable housing developers. Developers can then invest in construction, which creates demand for utilities (NEE, DUK, SO), solar equipment (ENPH, FSLR), and grid equipment (GEV). However, the causal chain is long and weak — no direct procurement, no mandate, and the bill is at the earliest legislative stage with uncertain prospects in a divided 119th Congress.

Structural winners are companies that can integrate renewable energy with affordable housing (NEE's NextEra Energy Resources community solar business) and utilities adding customer connections (DUK, SO). But these impacts are marginal — less than 0.5% of any company's revenue based on the $2.3B-$344.6B revenue figures provided. Tax credit expansion is protective for incumbent utilities and solar companies, not transformative.

As of May 28, 2026, no further actions beyond the December 18, 2025 referral have been recorded. The bill requires House committee hearings, a floor vote in the House, Senate introduction (no companion bill yet — HR247 and S46 are related but cover healthcare affordability, not housing), Senate committee passage, and presidential signature. Probability of passage in this Congress is below 30% based on committee referral status and lack of bicameral companion.