To amend the Internal Revenue Code of 1986 to extend certain tax benefits related to empowerment zones to the District of Columbia.

What happened: On December 9, 2025, Del. Eleanor Holmes Norton (D-DC) introduced HR6537, which amends the Internal Revenue Code to treat a portion of the District of Columbia as an empowerment zone for tax purposes. The bill was referred to the House Committee on Ways and Means. It has seen no further action in over four months — it remains in early legislative stages with minimal momentum.

The money trail: This bill does NOT authorize or appropriate any direct federal spending. It creates a tax expenditure — businesses operating in the designated DC zone would become eligible for existing empowerment zone tax benefits (wage credits, increased Section 179 expensing, tax-exempt bond financing). The revenue cost to Treasury would depend on how many businesses take advantage, but the Congressional Joint Committee on Taxation would estimate a revenue loss (typically tens to low hundreds of millions over 10 years for a single urban zone). As an authorization-type tax change, it requires passage and presidential signature to take effect.

Structural winners: Vornado Realty Trust ($VNO) is the most directly exposed publicly traded entity. Vornado owns premier DC office assets including the Washington, D.C. portfolio centered around downtown and the central business district. If a large portion of DC qualifies as an empowerment zone, Vornado tenants could claim wage credits, making Vornado's office space more attractive. Other DC-area REITs (e.g., $BXP, Boston Properties) have some DC exposure but are far more diversified nationally.

Real market data: $VNO currently trades at $30.12, well below the 52-week high of $43.37. The stock has rallied +15.89% over the past 30 days but was volatile even intra-period (closing range $28.92–$30.30). The 7-day change of +2.8% is modest. This price action appears more correlated with broader REIT market performance (falling interest rates improve REIT valuations) than with HR6537, which has not progressed since December.

Timeline: The bill must pass the House Ways and Means Committee, then the full House, then the Senate (where it needs a companion bill or amendment onto a larger tax package), then be signed by the President. In a divided 119th Congress, standalone tax bills from a DC delegate without committee chair sponsorship face extremely low passage probability. Most likely path: attachment to an end-of-year omnibus tax extenders package, if one emerges.