Sponsors (46)
The bill makes major investments to expand housing affordability, child and caregiver supports, health coverage affordability, and clean-energy and resilience incentives—delivering broad benefits to families, renters, and clean‑energy sectors—while substantially increasing federal spending and creating sizable administrative, compliance, and implementation burdens that introduce repayment risks and competitive allocation effects.
Millions of families with children (low- and middle-income) will get predictable monthly cash payments (advanceable and presumptively-eligible) to help with everyday expenses, plus protections (shielding from most offsets) and faster remediation for erroneous claims.
Substantially expands affordable housing supply and preservation by increasing LIHTC state allocations and new targeted credit programs (conversion credits, homeowner/for-sale credits, middle-income credits, DDA boosts and rural set-asides), improving financing options for conversions, rehabilitation, and new construction for low- and middle-income renters and buyers.
Makes health coverage more affordable and accessible for low- and moderate-income people (expanded premium tax credits, near‑full (99%) actuarial value for very low-income enrollees, added no-cost benefits and extended immunization coverage) and provides federal implementation support to Exchanges and issuers.
Large expansions of tax credits and direct payments across housing, child support, energy, health, and other programs materially increase federal tax expenditures and outlays, raising the risk of higher deficits or pressure on other federal spending unless offsets are provided.
The bill creates extensive new reporting, certification, valuation, verification, and monitoring obligations for the IRS, state housing agencies, developers, insurers, employers, and providers, producing significant administrative burden, compliance costs, and implementation risk for governments, businesses, and taxpayers.
Recipients and claimants face meaningful recapture, repayment, and liability risk (excess advance child payments, homebuyer recapture on early resale, conversion/credit recapture during long compliance periods), which can create cash-flow shocks and year-to-year uncertainty for low- and middle-income households and transferees.
Based on analysis of 14 sections of legislative text.
Creates multiple new and revised tax credits (housing, child monthly advance, caregiver, recycling, energy fixes), expands ACA cost‑sharing eligibility, and reforms housing credit allocation rules.
Official title: To amend the Internal Revenue Code of 1986 to address the nation's cost-of-living crisis.
Introduced December 18, 2025 by Michael Thompson · Last progress December 18, 2025
Creates wide-ranging tax and program changes to expand housing incentives, make clean-energy tax-credit fixes, add new family supports, and change health insurance subsidy rules. It revises and adds multiple tax credits (low-income, middle-income, neighborhood homes, recycling investment, child tax credit monthly advance, caregiver and family child-care startup credits), extends and tweaks the American Opportunity Tax Credit, and modifies ACA premium and cost-sharing rules to expand eligibility. The Act is complex and technical: it amends many Internal Revenue Code sections, establishes administration and reporting rules for new housing credit programs, restores or alters several clean-energy credit triggers and phaseouts, and sets up monthly advance child tax credit payments and presumptive eligibility processes, with most provisions effective for taxable years beginning after December 31, 2025 (and some ACA changes tied to plan years 2026–2028).