logo
Republicans dedicate some funding to courts, workforce agency, ag, but Democrats say it isn't enough

Republicans dedicate some funding to courts, workforce agency, ag, but Democrats say it isn't enough

Yahooa day ago

'The focus here is going to be on basically keeping our food safe and preventing disease from spreading,' Sen. Howard Marklein said at a press conference. (Photo by Baylor Spears/Wisconsin Examiner)
Republicans and Democrats on the Wisconsin Joint Finance Committee were divided Tuesday about the amount of money the state should invest in several state agencies including the Department of Workforce Development, the Wisconsin Supreme Court and the Department of Agriculture Trade and Consumer Protection.
Republicans on the committee said they were making strategic and realistic investments in priority areas, while Democrats said Republicans' investments wouldn't make enough of an impact.
The first divisive issue came up when the committee considered the budgets for Wisconsin's courts.
Democrats proposed that the state provide an additional $2 million and 8 new positions for the creation of an Office of the Marshals of the Supreme Court that would provide security for the Court.
Rep. Tip McGuire (D-Kenosha) and Sen. Kelda Roys (D-Madison) said the need for the office has increased recently due to the number of threats the judges and justices are facing.
'Given the role that they play in our judiciary in order to be impartial, we shouldn't want them to be in danger or to fear for their safety or to have any outward pressures on them that would influence the case,' McGuire said. 'I believe it's important for the cause of justice. I believe it's important for the cause of safety.'
Roys noted the inflammatory language that members of the Trump administration have used when talking about judges and justices, noting that Republicans have passed legislation before to help protect judges. She also noted that former Juneau County Circuit Court Judge John Roemer was targeted and murdered at his home in 2022.
'It is really frightening… and the Supreme Court has made this request over numerous years because they understand better than any of us do what it's like to try to serve the public in this critically important but increasingly dangerous role,' Roys said. 'I am much less interested in putting people in prison after they have murdered a judge than I am in preventing our judges from being attacked or killed, so, this seems to me a tiny amount of money to do a really important task to protect the third branch of government and particularly our Supreme Court.'
Republicans rejected Democrats' motion. Committee co-chair Rep. Mark Born (R-Beaver Dam) said at a press conference ahead of the meeting that the Wisconsin Capitol Police are tasked with protecting visitors, employees, legislators, the Court and anyone else in the building.
'They do a good job and continue to provide top-notch work here at the Capitol as part of security for everyone who works here,' Born said.
The committee also voted 13-3 with Andraca joining Republicans to allocate an additional $10 million each year to counties for circuit court costs.
The committee took action on portions of the budget for the Department of Agriculture, Trade and Consumer Protection (DATCP), giving a boost to he agency's Meat Inspection Program and Division of Animal Health.
'The focus here is going to be on basically keeping our food safe and preventing the disease from spreading,' committee co-chair Sen. Howard Marklein (R-Spring Green) said.
The Meat Inspection Program got an additional $2.7 million and two additional positions under the proposal approved by the committee. The program works to ensure the safety and purity of meat products sold in Wisconsin, including by inspecting the livestock and poultry slaughtering and processing facilities that are not already inspected by the U.S. Department of Agriculture (USDA).
The Division of Animal Health would get three additional employees that would be funded with about $500,000.
According to the Legislative Fiscal Bureau, Wisconsin has 233 official meat establishments and 70 custom meat establishments that require state inspection.
Roys said the proposal 'falls far short of what is needed,' noting that agriculture is a major economic driver in Wisconsin and the industry is under pressure due to actions being taken by the Trump administration. The USDA recently terminated its National Advisory Committee on Meat and Poultry Inspection, which had been in place since 1971, and the administration has considered ending most of its routine food safety inspections work.
'That kind of uncertainty is exactly why we need to step up our work at the state level,' Roys said, adding that she hopes that Republicans 'consider funding at the appropriate level what our farmers…deserve.'
Marklein noted that the committee's work on DATCP's part of the budget is not completed yet.
'This is a program that's had a shortfall year over year,' Andraca said, adding that she hopes 'members of this committee are vegetarians.'
'If there's one place that I wouldn't cut, it would probably be in meat inspection. If we're looking at places to take a little off the edge, food safety is not one of them, particularly in a time where we have avian flu and other diseases breaking out,' Andraca said.
The committee also voted along party lines to invest additional funds in programs administered by the Department of Workforce Development, including $6 million in youth apprenticeship grants, $570,000 in early college credit program grants, $250,000 for the agency's commercial driver training grant program and $250,000 for the workforce training grants.
Democrats had suggested that the committee dedicate $11 million for the youth apprenticeship program, which provides an opportunity for juniors and seniors in high school to get hands-on experience in a field alongside classroom instruction, but Republicans rejected it opting to put a little more than half of that towards the program.
Andraca said the program is important for allowing youth to 'try out new skills and new jobs' and train to fill positions in Wisconsin and that the $6 million investment makes it seem like the program is 'pretty much getting gutted.' The program has steadily grown annually over the last several years at an estimated rate of 16%, although, according to the LFB, the number of additional students each year has declined going from a high of 1,923 additional students in 2022-23, to 1,703 more in 2023-24, and 1,430 in 2024-25.
Andraca noted that the program currently operates on a sum certain model, meaning that there is a specific amount of money available and the size of a grant could vary depending on participation and available funds. If there is continued growth of 16% then the grant sizes could shrink. A sum sufficient model (which Democrats wanted) would mean that the agency's spending on the program isn't capped by a specific dollar amount.
Sen. Romaine Quinn (R-Birchwood) noted that the grants for students would likely grow from an average of about $900 currently to about $1,000 under the Republican proposal.
'This motion [is] at $6 million and $100 per award over the last budget, but we're supposed to believe it's gutting the program,' Quinn said.
'Welcome to the People's Republic of Madison where stuff like that happens a lot; $6 million in new money is a lot of money to most people but obviously the other side, it's gutting the program,' Born said, responding to Quinn. 'At some point when you're building a budget, you have to figure out a way to afford it, be reasonable in your investments, so maybe that's why we don't view a $6 million investment as gutting because we're trying to live within our means.'
The committee approved $2.3 million to support the new Wisconsin History Center in downtown Madison for 2025-26 and $540,800 and six positions annually starting in 2026-27.
Construction on the museum, which will be operated by the Wisconsin Historical Society, started in April and its opening is set for 2027.
The Historical Society had requested the one-time funding of $2.3 million in 2025-26 as well as ongoing funding of $1.7 million annually — more than double the amount the committee approved — starting in 2026-27 to help with operational costs, including security, janitorial and maintenance services. It said without ongoing funding from the state it wouldn't be able to open and maintain the museum. It also said that it was not anticipating needing to request additional funding for the museum operations in future budget cycles if the request is funded.
The committee also approved an additional $562,000 in one-time funding across the biennium for security and facilities improvements for the Historical Society's facilities and collections and $157,000 to cover estimated future increases in services costs. But the committee decreased funding for the Historical Society by $214,000 for estimated fuel and utilities costs.
A law, 2023 Wisconsin Act 73, overhauled alcohol regulation in Wisconsin and created a new Division of Alcohol Beverages under the Department of Regulation tasked with preventing violations of the new laws. Republicans on the committee approved a motion to recategorize nine general DOR positions and over $900,000 to the Division of Alcohol Beverages to help with enforcement. It also transferred an attorney to the division and added $456,000 in funding for two more positions in the Division of Alcohol Beverages.
Democrats said that Republicans on the committee were 'nickel and diming' the Department of Revenue with its proposal given that it recategorizes already existing positions rather than creating new ones.
'I do appreciate some of the efforts involved in this motion,' McGuire said, adding that he noticed there were 10 positions that were moved around.
'That seemed odd to me,' McGuire said. 'Were their feet up on their desk? They weren't collecting taxes at school time, or what were they doing? We want to be able to give the Department of Revenue tools they need to succeed, and frankly, the tools they need to provide resources to the state to make sure that everyone's on an even playing field so we can fund the priorities' of the state.
The GOP proposal passed on a party-line vote.
SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Playbook PM: Reconciliation, rescissions roil Republicans
Playbook PM: Reconciliation, rescissions roil Republicans

Politico

time39 minutes ago

  • Politico

Playbook PM: Reconciliation, rescissions roil Republicans

Presented by THE CATCH-UP BIG IMMIGRATION NEWS: The Trump administration today will tell hundreds of thousands of Cubans, Haitians, Nicaraguans and Venezuelans who immigrated here legally under humanitarian parole that their legal status is being terminated, CNN's Priscilla Alvarez scooped. That will leave them vulnerable to deportation, after the Supreme Court green-lit the policy for now. … But the administration seems to have paused its plans to begin mass transfers of detained immigrants to Guantanamo Bay, POLITICO's Myah Ward and Nahal Toosi report. RECONCILABLE DIFFERENCES: Republicans have averted one small blow-up on the Hill — Sen. Rand Paul (R-Ky.) is invited to today's White House congressional picnic after all. President Donald Trump announced it, and Paul posted a photo of his grandson in a MAGA hat (though Rep. Thomas Massie (R-Ky.) said he too had his tickets withheld). But much more challenging clashes still loom for both the reconciliation megabill and today's House vote on rescissions. Miller time: White House deputy chief of staff Stephen Miller met with Senate Republicans today to advocate for border/immigration enforcement funding in the reconciliation bill, per ABC's Allison Pecorin. But things got tense between Miller and deficit hawks who want to pare back spending, including what sources tell Punchbowl's Andrew Desiderio was a 'shouting match' with Sen. Ron Johnson (R-Wis.) on the budget math. Axios' Stef Kight reports that Sen. Roger Marshall (R-Kan.) was peeved at Miller, while an absent Paul loomed large. Kicking the can down the road: A decision on the state and local tax deduction number won't be included in the Senate Finance bill text yet, Sen. Chuck Grassley (R-Iowa) told Semafor's Burgess Everett. Sen. Markwayne Mullin (R-Okla.) told reporters he's working with House members to try to land a SALT deal. 'I hope they modify it in a very small way,' Speaker Mike Johnson said, holding up prayer hands. By the numbers: The latest CBO report offers a neat encapsulation of the messaging wars likely to come between Democrats and Republicans on the bill. The analysis finds that the reconciliation package — including tax cuts, Medicaid cuts and SNAP cuts — would bolster the average American household's resources from 2026 to 2034. But it would increase inequality, hurting low-income families' resources while benefiting the middle class and wealthy. Specifically, the nonpartisan scorekeeper says low-income households would suffer a $1,600 annual hit on average, middle-income households would gain $500 to $1,000, and high-income households would romp with a whopping $12,000 boost, per POLITICO's Jennifer Scholtes. WHAT TO WATCH TODAY: The House is barreling toward a 3 p.m. vote on enshrining Department of Government Efficiency cuts to foreign aid and public broadcasting, with the outcome potentially still up in the air. Johnson said he feels confident Republicans have the votes to claw back $9 billion in funding. But POLITICO's Meredith Lee Hill reports that it's not a done deal yet: Leadership hasn't been able to flip seven GOP holdouts, and they 'may have to rely on Dem absences.' At stake: The consequences of this vote are enormous. Republicans see it as a way to start institutionalizing DOGE cuts and ax spending for organizations they dislike. But decimating funding for PEPFAR could threaten HIV treatment and prevention programs that have saved 25 million lives in 22 years, even as the White House claims it'll keep lifesaving work going. Humanitarian groups say the future of foreign aid looks very bleak, though the Senate may try to scale back some of the cuts, NOTUS' Helen Huiskes reports. Meanwhile, cuts to PBS and NPR have public media stations, especially in rural areas, fearing they may not survive, POLITICO's Aaron Pellish reports. Good Thursday afternoon. Thanks for reading Playbook PM. Drop me a line at eokun@ 8 THINGS YOU NEED TO KNOW 1. CONSTITUTIONAL CRISIS WATCH: Defense Secretary Pete Hegseth today refused to confirm that the administration would comply with a potential court ruling barring the deployment of Marines to support ICE operations in Los Angeles, POLITICO's Joe Gould reports. He deflected lawmakers' questions and said only that 'we should not have local judges determining foreign policy or national security policy.' The California clash: Ahead of this afternoon's court hearing, California Gov. Gavin Newsom continued to go after Trump for deploying troops to anti-ICE protests. On NYT's 'The Daily,' Newsom outright questioned the president's mental acuity after Trump claimed he talked to the governor Monday: 'Maybe he actually believed he said those things, and he's not all there. I mean that.' But he also distanced himself from sanctuary policies and said he'd work with ICE. Indeed, many Democrats are hoping to refocus the political conversation here away from immigration policy and onto Trump pushing the legal limits of his power, POLITICO's Dustin Gardiner and Natalie Fertig report from San Francisco. Behind the escalation: Before the LA situation, there was a monthslong history of planning within the administration to use the military more to support domestic immigration enforcement, CNN's Priscilla Alvarez and Natasha Bertrand report. And on the flip side, far-left groups that advocate for violence have encouraged agitators to escalate beyond peaceful protests, especially at night — part of a pattern from other cities in recent years, NBC's Rich Schapiro and Andrew Blankstein report. Wait, what? Apparently having heard from farming and hospitality advocates, Trump posted on Truth Social today to indicate that he doesn't want aggressive deportations to target their workforce. That message may not have gotten through to his vast immigration enforcement apparatus: Border czar Tom Homan told Semafor's Ben Smith that coming soon, 'worksite enforcement operations are going to massively expand.' The other military hubbub: The latest AP/NORC poll shows Americans have mixed feelings about Trump's military parade on his birthday this Saturday. The median opinion seems to be something like: Seems fine, but wish we weren't spending money on it. U.S. adults overall say they approve of the parade, 40 percent to 31 percent, but don't think it's a good use of government funds, 60 percent to 38 percent. 2. PAGING NUUK: 'I just want to help you out, because people try to twist your words,' Rep. Mike Turner (R-Ohio) said to Hegseth on the Hill today. 'You are not confirming in your testimony today that at the Pentagon, there are plans for invading or taking by force Greenland, correct?' But Hegseth wouldn't go there: 'The Pentagon has plans for any number of contingencies,' he said. 'We look forward to working with Greenland to ensure that it is secured from any potential threats.' 3. MIDDLE EAST LATEST: Top Israeli officials are expected to travel tomorrow to meet with special envoy Steve Witkoff, POLITICO's Nahal Toosi reports. That will be an opportunity for Jerusalem to clarify what its plans are toward Iran, amid a flurry of reports that U.S. officials expect an Israeli attack on Iran could be imminent. 'I don't want to say imminent, but it is something that could very well happen,' Trump said of a potential Israeli strike. But Witkoff has warned senators that Iran's response might be a mass casualty event in Israel, Axios' Barak Ravid scooped. 4. MAN OF STEEL: 'Trump Says US Government Will Get 'Golden Share' in US Steel,' by Bloomberg's Josh Wingrove and Mario Parker: 'Trump's comment was the first public confirmation by the administration that it was seeking a golden share. The White House has not yet spelled out what that would mean, including — as is typically the case — whether that would include an equity stake.' 5. TRADING PLACES: Trade talks between the U.S. and India have hit some speed bumps as both sides dig in on crucial demands, including whether New Delhi will allow genetically modified crops in, Bloomberg's Shruti Srivastava reports. Meanwhile, despite Trump touting the latest framework agreement with China this week, Beijing is very much playing the long game and learning how to stall the U.S. repeatedly, NYT's David Pierson and Berry Wang report. 'While Trump seeks quick deals done directly with top leaders, [Chinese President Xi Jinping] favors a framework led by his lieutenants that wards against being blindsided,' Bloomberg writes. 'Such haggling could drag on for years.' 6. WITH FRIENDS LIKE THESE: Despite Trump's alliance with Salvadoran President Nayib Bukele, ProPublica's T. Christian Miller and Sebastian Rotella reveal that San Salvador impeded a yearslong U.S. investigation into whether its government had quietly struck a deal with MS-13. Bukele allies have also refused to extradite gang members to the U.S. who could have been witnesses. At the same time, Bukele's growing relationship with Trump has emboldened what experts say is a growing authoritarian crackdown on dissent at home, AP's Megan Janetsky and Marcos Alemán report. Longtime Bukele opponents say there's been 'an inflection point' in recent weeks, as the U.S. Embassy hasn't said anything. 7. LOOK WHO'S BACK: Sen. Bernie Sanders (I-Vt.) is hitting the road again with his record-breaking 'Fighting Oligarchy' tour, which has rejuvenated progressives deep into red territory. His stops next weekend will take a similar approach, from the Rio Grande Valley to Tulsa, Oklahoma, to Johnson's hometown of Shreveport, Louisiana. 8. BUYER'S REMORSE: 'Trump's travel ban fuels despair and disgust with politics among Arab Americans in Michigan,' by AP's Isabella Volmert in Dearborn: 'It came as a particular shock to many Yemeni Americans … While it may not elicit the same protests as 2017, many Yemeni and Arab Americans in the all important battleground state see it as yet another offense contributing to enormous dissatisfaction with both major political parties.' TALK OF THE TOWN Winsome Earle-Sears' old Google/Yelp reviews for her business show that she often got into it with displeased customers. Abraham Lincoln-signed copies of the Emancipation Proclamation and the 13th Amendment are going up for auction, potentially fetching several million dollars. Noah Wyle was on the Hill today to advocate for mental health care for health care workers. PLAYBOOK REAL ESTATE SECTION — 'This D.C. real estate agent is closing huge deals with Trump-world elite,' by Axios' Mimi Montgomery: 'Over the years, [Daniel] Heider, 38, has become known in Washington for selling ginormous, ultra-lux estates — positioning him perfectly for catering to the enormously wealthy cast of players moving into President Trump's Gilded Age D.C. … He doesn't see himself as simply a real estate agent. He's more of a white-glove concierge meets sociologist meets therapist, he tells Axios.' OUT AND ABOUT — SPOTTED at Walmart's U.S. manufacturing reception yesterday at its Navy Yard office, capping the company's two-day Hill fly-in: Reps. Nick LaLota (R-N.Y.), Sarah Elfreth (D-Md.), Bill Foster (D-Ill.), Darrell Issa (R-Calif.), Brad Knott (R-N.C.), Mariannette Miller-Meeks (R-Iowa), Brad Schneider (D-Ill.), Nick Langworthy (R-N.Y.) and Beth Van Duyne (R-Texas) and Resident Commissioner Pablo José Hernández (D-P.R.). — SPOTTED at the Aspen Institute's Philosophy and Society/Wisdom of Crowds salon with Francis Fukuyama at Damir Marusic's residence last night: Shadi Hamid, Samuel Kimbriel, Christine Emba, Jason Willick, Freddy Gray, Freddie Hayward, Jordan Castro, Rachel Rizzo, Kelly Chapman, Harry Stein, Jamie Kirchick, Diana Brown, Mana Afsari, Santiago Ramos, Kristina Tabor, Samuel Goldman, Jon Purves, Chris Griswold, Peter Catapano, Chris McCaffery, Sadev Parikh and John Hudson. TRANSITIONS — Ronald Rowe Jr. is joining the Chertoff Group as a senior adviser. He previously was acting director of the Secret Service. … Reservoir Communications Group is adding Patrick 'Pat' Kannan as CFO and Ashley Flint as an SVP. Kannan previously was CFO at OPEXUS. Flint previously was a principal at Avalere Health. Send Playbookers tips to playbook@ or text us on Signal here. Playbook couldn't happen without our editor Zack Stanton, deputy editor Garrett Ross and Playbook Podcast producer Callan Tansill-Suddath.

Conservative Josh Hawley introduces bill to raise federal minimum wage to $15 an hour
Conservative Josh Hawley introduces bill to raise federal minimum wage to $15 an hour

USA Today

time44 minutes ago

  • USA Today

Conservative Josh Hawley introduces bill to raise federal minimum wage to $15 an hour

Conservative Josh Hawley introduces bill to raise federal minimum wage to $15 an hour Show Caption Hide Caption Lawmakers advance bill to lower pay for trainees Florida lawmakers are advancing bills that would allow employers to pay certain workers in training below the minimum wage for up to 12 months. Fox - 35 Orlando WASHINGTON - Ultraconservative Missouri Sen. Josh Hawley introduced a bill on June 10 with Democratic Vermont Sen. Peter Welch to raise the federal minimum wage to $15 an hour, making him one of the few Republicans to support the cause. The bill, dubbed the 'Higher Wages for American Workers Act,' would raise the minimum wage starting in January 2026 and allow it to increase on the basis of inflation in subsequent years. The federal minimum wage is currently $7.25 per hour and it's been unchanged since 2009. It is unclear whether the legislation will be taken up for a vote. Members of Congress have previously tried to raise the minimum wage, but to no avail. In 2021, Democratic lawmakers tried to tack a $15 per hour minimum wage provision in former President Joe Biden's $1.9 trillion coronavirus package, but a Senate official ruled that the measure couldn't be included in the bill. President Donald Trump said in December 2024 that he would 'consider' raising the minimum wage. However, he revoked a 2024 executive order that set the minimum wage for federal contractors at $17.75. 'For decades, working Americans have seen their wages flatline," Hawley said in a statement. One major culprit of this is the failure of the federal minimum wage to keep up with the economic reality facing hardworking Americans every day." Welch, a member of the Senate Finance Committee, echoed a similar sentiment. 'Every hardworking American deserves a living wage that helps put a roof over their head and food on the table–$7.25 an hour doesn't even come close,' he said. The Employment Policies Institute, a think tank dedicated to researching employment growth, opposed Hawley and Welch's push, arguing that it would result in a loss of jobs. 'Sen. Hawley should know better,' Rebekah Paxton, research director of the institute, said in a news release. 'This proposal would more than double the minimum wage and slash over 800,000 jobs. An overwhelming majority of economists agree that drastic minimum wage hikes cut employment, limit opportunities for workers, and shutter businesses.' The nonpartisan Congressional Budget Office found in an analysis that raising the minimum wage would 'raise the earnings and family income of most low-wage workers' but would cause other low-income workers to lose their jobs and their family income to fall. Hawley in February teamed up with progressive firebrand Vermont Sen. Bernie Sanders to introduce a bill capping credit card interest rates at 10%, saying it would "provide meaningful relief to working people." He's also been a vocal critic of Medicaid cuts.

The History of the Low-Income Housing Tax Credit—And How it Could Improve Trump's ‘Big Beautiful Bill'
The History of the Low-Income Housing Tax Credit—And How it Could Improve Trump's ‘Big Beautiful Bill'

Time​ Magazine

timean hour ago

  • Time​ Magazine

The History of the Low-Income Housing Tax Credit—And How it Could Improve Trump's ‘Big Beautiful Bill'

This April, over 150 Republicans and Democrats in Congress came together to introduce the Affordable Housing Credit Improvement Act. The bill aims to address a crisis plaguing nearly every U.S. city: the shortage of low-income and moderate-income housing. Nearly half of American renters spend over 50% of their income on housing, a level that experts consider 'cost burdened," according to the National Low-Income Housing Coalition. The bill works by expanding a tool—the Low-Income Housing Tax Credit (LIHTC) —which has a long and bipartisan history. Everyone from businesspeople to housing advocates have enthusiastically supported it. The credit helps underwrite nearly all construction of affordable housing in the U.S. Whether Congress can pass the Affordable Housing Credit Improvement Act (AHCIA) may come down to whether its Republican boosters can get it into President Donald Trump's ' Big, Beautiful Bill," which the Senate is now working on. It would add cost to the legislation, which could cause rifts between GOP legislators. Yet, history indicates that including it could improve a key source of housing for America's 'working poor.' At the heart of the LIHTC is the idea of giving investors subsidies for building housing. This concept dates back to the era after World War II. Americans may be familiar with the Servicemen's Readjustment Act, the ' GI Bill,' which set up low-interest mortgages for veterans and other home buyers. It produced broad rings of single-family suburban homes around every city. Much less well-known, however, are a series of incentive programs the government enacted to spur the building of rental housing. Read More: A Look at Community Land Trusts and How They Combat the Affordable Housing Crisis During the late 1940s and early 1950s, the administration of Democrat Harry Truman used a tool called FHA 608 to quickly house veterans returning from World War II and the Korean War. It offered long-term loans and free project-planning assistance to apartment developers and guaranteed them a profit. In many cities, that produced more low-rent units than did the nascent U.S. Public Housing program. In the 1960s, another Democratic President, Lyndon B. Johnson, pushed a new set of subsidies. Housing was a top concern for Johnson as part of his War on Poverty —leading to his creation of the Department of Housing and Urban Development (HUD) in 1965. His administration used two programs, FHA 221(d)3 and HUD 236, to provide depreciation tax breaks and ultra-low interest loans to private developers of low- and moderate-income apartments. As nationally syndicated financial columnist Sylvia Porter reported excitedly, 'There are unparalleled opportunities for profit awaiting you, the investor, in low-cost housing … as a result of the meshing of giant new housing and tax laws.' A savvy investor could use the 'big deductions … to offset your other highly taxed income'—a technique called a "tax shelter." As with the earlier Truman program, these subsidies to private developers 'far outdistanced the traditional public housing program' in producing new units, according to the United States Comptroller General Elmer Staats. During the 1980s, federal housing efforts ran headlong into a rising conservative movement, led by President Ronald Reagan. The right was determined to pare back government spending and slash programs. Congress moved to wipe out most aid to help build affordable housing and replace it with Section 8 vouchers. Instead of subsidizing construction, the government would pay landlords the difference between what a renter could afford and the market rate for rent. But business leaders and housing activists revolted. They insisted that Congress should create a strategy to stimulate construction of new units. In 1986, their efforts paid off as part of the sweeping, seminal bipartisan Tax Reform Act. Among its many provisions was the Low-Income Housing Tax Credit. LIHTC gave investors a tax credit—an update of the tax shelter idea—if they developed affordable housing or provided dollars to a non-profit doing that work. From 1986 through to today, the majority of affordable housing in the U.S. has been constructed with this credit. Local or state dollars often supplement it, but without LIHTC, many projects simply would not get built. The credit has worked pretty well for nearly 40 years, an impressive longevity. But two shortcomings have become apparent. The first is that when the Reagan Administration launched the program, the idea of mixed-income housing was not yet a goal. So LIHTC regulations favor projects that serve households that make 60% of an area's median income (AMI). That's an important demographic, including teachers, nurse assistants, food service managers, and other similarly situated individuals. But this target is too narrow on both ends. It often prices out the poorest Americans, who make 30% AMI or less, and it also offers nothing to people making 80% AMI, who increasingly need help with today's skyrocketing rents. A second shortcoming of LIHTC is that funding has not expanded since 1986, when both the population and its needs were dramatically smaller. The result is that, now, meaningful projects are excluded simply because of lack of available money. As Scott Farmer, the head of the North Carolina Housing Finance Agency told me in an interview, 'The worst part of our job is that we get 120 applications a year and can only fund 30 to 35. Those other deals are great deals, we just don't have enough resources to go around.' The new AHCIA bill recently introduced in Congress aims to address both of those problems. It would encourage landlords to mingle tenants at all incomes. Mixed-income projects have been considered best-practice for some 30 years now; the AHCIA will help regulations catch up with that reality. The AHCIA would also dramatically expand the available credits. It would re-institute a temporary increase of 12.5% that Congress approved in 2018 but later allowed to lapse. And it would boost the total by an another 50%, allowing hundreds of additional projects to become reality. The AHCIA has serious support on both side of the aisle in Washington. Its Senate co-sponsors include conservative Republicans Todd Young of Indiana and Marsha Blackburn of Tennessee, along with liberal Democrats Ron Wyden of Oregon and Maria Cantwell of Washington. The House version of the bill already has 130 cosponsors. The difficulty in passing the bill may not be opposition. Rather, it's that relatively small tax-related proposals like AHCIA rarely get enacted as stand-alone legislation. Instead, they often get swept up into fierce and partisan debates over taxes and spending. That's precisely what's happening right now in the Capitol—President Trump's 'Big, Beautiful Bill' includes massive tax cuts along with reductions in social service programs such as Medicaid and SNAP (food stamps), increased funding for deportations and border security, and much more. Despite its broad support, the AHCIA could be overlooked amid the bigger battles. The question will be whether advocates of AHCIA can push some pieces of their legislation into this larger bill. The history provides at least some modest hope. The use of tax credits has deep roots, both among Republicans and Democrats, and a long track-record of success. When Congress adopted LIHTC back in 1986, it came as part of much bigger legislation—so that path is a genuine possibility. Will leaders in Congress take action in 2025? If they do, the Affordable Housing Credit Improvement Act has the potential to do a lot of good, to expand the housing supply, spur the economy, and help address the affordability crisis plaguing America. Tom Hanchett is a North Carolina-based historian. His new book Affordable Housing in Charlotte: What One City's History Tells Us About America's Pressing Problem is published by UNC Press.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store