The American Housing and Economic Mobility Act of 2025 outlines various initiatives aimed at making housing more affordable, addressing historical housing discrimination, and improving housing assistance programs. Additionally, it proposes reforms to estate tax rules and introduces accessibility requirements, all structured to enhance economic opportunities and fairness in housing.

The section establishes a program where the Secretary of Housing and Urban Development will give grants to eligible entities, such as states or local governments, to lower costs and remove barriers for building affordable housing. These grants can be used for various activities like renovating school facilities or encouraging denser housing development, and must follow specific labor law requirements.

The section outlines funding allocations for various housing programs and funds for fiscal years 2025 through 2034. It includes appropriations for the Housing Trust Fund, Capital Magnet Fund, Public Housing Capital Fund, and others, along with the creation of the Middle Class Housing Emergency Fund to address shortages in affordable housing and prevent tenant displacement.

Congress has proposed rules to ensure that the relevant agencies prioritize selling foreclosed homes and non-performing loans to low- and moderate-income homeowners, as well as community partners planning to maintain the housing for such buyers. If properties or loans are sold under certain conditions, buyers and lenders must comply with fair housing practices and offer specific loss mitigation options to struggling borrowers, with limitations on resales to prevent predatory practices.

The section requires the Secretary to create programs ensuring that at least 75% of certain foreclosed homes are sold to people who will live in them or to non-profit groups that will fix them up and then sell them to people who will live in them. It also includes guidelines for an exclusive period where only certain buyers can bid on these homes and prevents resale through certain methods for 15 years without approval.

The section outlines the conditions and requirements under which the Secretary can sell or transfer non-performing mortgages insured under federal law. It emphasizes the need for lenders and servicers to review loss mitigation options, ensures borrowers are informed, and sets guidelines for auctions, prioritizing the sale of these mortgages to community partners, while protecting borrowers’ rights and ensuring a significant portion of foreclosed properties are used for affordable housing.

An enterprise is not allowed to sell bulk groups of single-family re-performing loans unless priority is given to government and nonprofit groups that support housing. The process must include notifying borrowers of upcoming sales and ensuring buyers follow guidelines for helping borrowers who fall behind on payments. Data must be collected and reported to Congress, and there are penalties for buyers who don't comply with the rules.

The section establishes a down payment assistance program for first-time, first-generation homebuyers who meet certain income criteria. Eligible participants can receive grants for purchasing their primary home, and the program is managed by the Secretary of Housing and Urban Development. The use of these funds requires no additional proof beyond personal attestation, and the grants must be partially repaid if the home isn't used as the buyer's main residence for at least five years unless certain exceptions apply.

This section establishes a program led by the Secretary of Housing and Urban Development to financially support States with neighborhoods facing an appraisal gap, where home prices are less than the cost to acquire or build. The program aims to assist borrowers in these areas by helping them pay down debts related to their homes and funding programs to improve or buy vacant properties, with a total of $5 billion authorized for this purpose for fiscal year 2025.

The "Community Reinvestment Reform Act of 2025" amends the original Community Reinvestment Act of 1977 to strengthen the requirements for financial institutions to support low- and moderate-income communities. It introduces standards for assessing how well these institutions meet community credit needs, includes measures to evaluate investments in climate resiliency, and requires public input in certain financial activities. It also sets penalties for institutions that consistently perform poorly and mandates data collection and community involvement to ensure fair access to financial services.

Congress finds that financial institutions have a duty to serve the financial needs of their local communities, especially low- and moderate-income areas, by offering various financial services and loans. The purpose of this section is to ensure that federal agencies use their authority to make sure these institutions meet community needs while operating safely and soundly.

The provided section defines various terms related to banking and financial regulations, including what constitutes an "application for a deposit facility," "community development," and the categorization of banks based on asset size. It also explains terms concerning climate resiliency, fossil fuel activities, and the identification of underserved communities and populations, ensuring clarity on how these concepts apply to U.S. financial institutions.

The section outlines the data collection and reporting requirements for regulated financial institutions, which must collect and maintain data on consumer loans and community development activities, and provide this information to federal agencies. These agencies will then compile and publicly disclose aggregated loan data while ensuring individual privacy, and establish online systems for public access to this information.

Each regulated financial institution must create a Community Advisory Committee made up of diverse groups to provide input on serving community credit and deposit needs. Executives of these institutions must meet semi-annually with the committees to discuss their services and plans, focusing on inclusivity of various communities. Specific consultation is also required before companies can merge, open, or close branches, ensuring community interests are considered.

The bill requires federal financial supervisory agencies to conduct a study every two years to find areas with ongoing discrimination or racial disparities in accessing credit and financial services. They must use various data sources, including public litigation information, and report their findings and policy recommendations to Congress to address these issues.

The public registries section requires federal financial agencies, through the Federal Financial Institutions Examination Council, to keep a list of community organizations and stakeholders who have commented on bank examinations and community needs. Additionally, they must engage with community groups to ensure diversity in geography, gender, race, and various needs like affordable housing and economic development facilities.

The amendments to the Federal Credit Union Act aim to help credit unions serve underserved areas by defining what constitutes an "underserved area," allowing such credit unions to expand their membership to include residents and businesses in these areas, and requiring them to submit plans that address the financial needs of these communities. The amendments also establish reporting requirements to ensure credit unions comply with their plans, and they mandate that the National Credit Union Administration Board issue regulations to support these changes.

The section amends existing laws to allow national and State member banks to invest in projects that benefit low- and moderate-income communities, like providing housing, services, or jobs, while setting limits on these investments based on the bank's financial condition to ensure they don't pose significant risks.

During a specific period, certain direct descendants of deceased veterans, who served between June 22, 1944, and April 11, 1968, but did not receive housing loan benefits, may qualify for VA-guaranteed home loans. This eligibility includes living descendants who are first-time and first-generation homebuyers, with guidance on verifications and procedures to be established by the Secretary of Veterans Affairs.

The section expands and clarifies the Fair Housing Act by adding protections against discrimination based on sexual orientation, gender identity, marital status, source of income, and veteran status. It also ensures that certain programs assisting veterans or based on veteran status are not prohibited, while making clear that discrimination protections apply to both actual and perceived characteristics.

The section aims to improve housing assistance programs by amending existing laws, encouraging public housing agencies to analyze and address barriers that prevent families from accessing better neighborhoods, and establishing policies for regional planning. It also allows public housing agencies to consolidate funding and collaborate to increase access to high-opportunity areas, while excluding certain agencies from specific flexibility provisions.

Whenever a new amendment or repeal is mentioned in this bill, it should be understood as a change or removal of a part of the Internal Revenue Code of 1986, unless the bill specifically states otherwise.

The section addresses changes to estate tax rates, with increased rates for large estates and a reduced basic exclusion amount of $3,500,000. It introduces a 10% surtax for estates exceeding $1 billion and specifies that these changes apply to the estates of people who pass away and certain transfers and gifts made after the law is enacted.

Under the proposed changes, a grantor retained annuity trust must have terms where payments are fixed for at least ten years and do not decrease in value during that period, and a portion of the trust must be worth at least 10% of the total assets at the time of transfer. These changes will only apply to transfers made after the law is enacted.

This section introduces specific tax rules for certain grantor trusts, stating that if a person who is considered the owner of part of the trust dies, the value of those assets is added to their estate. Transfers made from the trust during the owner's life are treated as gifts that may be taxed, and any tax due is the trust's responsibility. These rules apply primarily to new trusts and certain transactions with existing trusts after the law is enacted.

This section outlines how transfer taxes apply to certain trusts by including specific assets in the estate of a deceased owner and treating some distributions as gifts. It specifies the situations these rules apply to, exceptions to the rules, who is considered the "deemed owner," and states that the trust is responsible for paying any taxes owed.

The section amends tax code rules by eliminating certain tax exemptions for money or assets passed to individuals who are not "exempt persons" or trusts fully owned by such individuals. It repeals part of a previous law, specifying that these changes begin immediately upon the law's enactment and apply to future transfers.

The bill simplifies the gift tax exclusion by amending the limits and conditions under which gifts from a donor to individuals and certain types of transfers are excluded from taxation. It specifies a $10,000 exclusion limit per recipient annually and introduces an overall cap for certain transfers made by the donor, with these changes applying to any calendar year after the bill's enactment.

The section explains that property held in certain grantor trusts will not benefit from a step-up in basis, meaning the property value adjustment won't apply when such property is transferred to the trust and remains outside the transferor's gross estate. It specifies that the changes apply to transfers made after the bill's enactment and clarifies that no conclusions should be made about transfers made before that date.

The section describes new rules for transferring interests in entities, specifically focusing on discounts and valuing nonbusiness assets. It limits discounts on transfers controlled by family members and sets guidelines for valuing nonbusiness assets as if transferred directly, not allowing discounts for these types of assets.

In this section, the bill sets rules for how certain assets can be valued during transfers. It says no discounts will be given simply because family members control an asset, or because the asset is hard to sell. Also, if a business transfers assets that aren't used in everyday operations, these assets should be valued as if they were directly transferred without any discounts. Additionally, some assets like cash or stocks are considered passive and are not valued as business assets unless specific conditions are met.

The section introduces an additional tax, called a surcharge, on estates and trusts with high incomes. This surcharge is 5% on income over $200,000 and 3% on income over $500,000, and there are specific rules and exceptions, such as exemptions for charitable trusts and how the surcharge affects other tax calculations.

In this section, a surcharge tax on high income estates and trusts is introduced, requiring estates and trusts to pay an extra 5% tax on income over $200,000 and an additional 3% on income over $500,000. Some trusts, like charitable trusts and certain small business trusts, have special rules or exemptions, while the Secretary is tasked with issuing regulations to ensure the section's intentions are not avoided.

The bill section proposes changes to the Internal Revenue Code that increase the maximum value of certain real property, like farms, from $750,000 to $3,000,000. These adjustments will be tied to inflation starting from 2026, and the new rules will apply to estates of individuals who die, and gifts given, after December 31, 2025.

In this section, the rules for estate taxes on land with conservation easements are modified. The maximum exclusion amount increases from $500,000 to $2,000,000, and the applicable percentage changes from 40% to 60%. These changes will apply to people who pass away and gifts made after December 31, 2025.

Under this section, when building or changing housing with funds from the Secretary of Housing and Urban Development, the number of units that need to be accessible for people with disabilities must be doubled compared to what current regulations require.