By Kim Johnson, NLIHC
In July, congressional Republicans used reconciliation to enact the “One Big Beautiful Bill Act” (OBBBA; HR 1). Because of the rules of reconciliation, the bill did not impact funding for HUD programs. However, the bill includes harmful cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), two anti-poverty programs that provide essential assistance to many of the same households using—or in need of—rental assistance. As a result of cuts to SNAP and increased work reporting requirements, an estimated 2.4 million people will lose food assistance over the next ten years. Over the same decade, work reporting requirements and changes to the “Affordable Care Act” will cause an estimated 10 million people to lose health insurance coverage. With cuts to Medicaid and SNAP, low-income families will need to spend more of their limited budgets on healthcare and groceries, leaving even less money available for rent.
Among other provisions, the bill also includes an expansion of the Low-Income Housing Tax Credit (LIHTC), which is expected to help finance the construction of an additional 1.22 million affordable rental homes over the next 10 years. While additional affordable housing supply is needed, on its own, LIHTC does not typically produce homes deeply affordable enough for households with the lowest incomes to afford. Additional subsidies are typically required to ensure lower-income families can live in LIHTC units.