Bill lets states issue tax-free bonds for old cheap housing without limits

What it does

The bill lets states and cities issue tax-free bonds to fix up old cheap housing. These bonds would not count against yearly limits on tax-free bonds. The bill targets buildings that got state or government money when built. Those buildings no longer have to stay cheap. Builders and housing groups can now borrow money at lower cost to fix these buildings.

Who it affects

Builders, housing groups, and nonprofits would pay less to borrow money. Taxpayers would lose government tax money. Renters might see improvements, but the bill does not require lower rent.

One thing to notice

The bill does not require that lower costs go to renters. Builders could keep the savings. The bill also lets more bond money buy old buildings instead of fix them.

From the analysis of the bill text, linked under Primary records below.

Where it stands

1 cosponsor: 1 Republicans.

• Jul 23, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jul 23, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Words to know

• tax-free bonds — Loans where the lender does not pay federal tax on the interest earned.
• cheap housing — Homes or apartments rented at prices low-income people can pay.
• tax-free — Not subject to federal income tax.