This bill takes about $175 billion that was previously allocated for immigration enforcement and border security and redirects it toward making housing more affordable. It does this through several new tax credits designed to help people buy homes and afford rent.

For homebuyers, the bill creates a $25,000 tax credit for first-time homebuyers (increased to $50,000 for people who aged out of foster care or whose parents never owned a home). The credit phases out for higher earners and includes an option to have the government deposit the money directly into an escrow account to help with down payments and closing costs. There's also a separate 15% tax credit for builders who construct small, affordable homes under 1,200 square feet that don't exceed 80% of the area median home price.

For renters, the bill creates a new "Renter Tax Credit" that helps people whose rent exceeds 30% of their income. The credit percentage varies based on income level, providing more help to lower-income renters. Additionally, the bill creates a tax credit for converting old commercial buildings into affordable housing, with a 20% credit for conversion costs, and includes special provisions for rural and historic properties.

The bill also funds the IRS with $50 million to help eligible people enroll in these new programs and understand their benefits. All the dollar amounts in these credits will automatically increase each year to account for inflation starting in 2026.