Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The American Affordability Act of 2025 is a comprehensive tax and benefit reform bill designed to address the nation's cost-of-living crisis by reducing housing costs, supporting families with children and caregivers, expanding clean energy and infrastructure investments, and improving access to healthcare and education. The bill makes major changes to housing programs by significantly increasing Low-Income Housing Tax Credits, creating new tax credits for affordable home conversions and first-time homebuyers, and doubling the capital gains exclusion for home sales. For families, it establishes a new monthly child tax credit providing $300 per child (expanding to $360 for infants), enhances child care expense credits, and creates new credits for working family caregivers and adoption expenses, while also lowering the earned income tax credit eligibility age from 25 to 19 and removing the upper age limit. Additionally, the legislation extends clean energy and electric vehicle tax credits through 2032, creates new credits for electric bicycles, battery manufacturing, transmission line upgrades, disaster mitigation, and water recycling projects, and enhances healthcare affordability by extending premium subsidies to higher-income households and requiring free coverage of CDC-recommended vaccines. The bill includes funding for IRS outreach and health insurance navigator programs and makes most provisions effective for tax years beginning after December 31, 2025.
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