Sec. 1. Short title; table of contents. 
TITLE I—MAKING HOUSING MORE AFFORDABLE 
Sec. 101. Local housing innovation grants. 
Sec. 102. Investing in affordable housing infrastructure. 
Sec. 103. Conditions for the sale of real estate-owned properties and non-per-
forming loans. 
TITLE II—TAKING THE FIRST STEPS TO REVERSE THE LEGACY 
OF HOUSING DISCRIMINATION AND GOVERNMENT NEGLIGENCE 
Sec. 201. Down payment assistance program for first-time, first-generation 
homebuyers. 
Sec. 202. Formula grant program for communities with an appraisal gap. 
Sec. 203. Strengthening the Community Reinvestment Act of 1977. 
Sec. 204. Amendments relating to credit union service to underserved areas. 
Sec. 205. Raising public welfare caps. 
Sec. 206. Temporary eligibility of certain direct descendants of certain veterans 
for housing loans guaranteed by the Secretary of Veterans Af-
fairs. 
TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES 
Sec. 301. Expanding rights under the Fair Housing Act. 
Sec. 302. Improving outcomes in housing assistance programs. 
TITLE IV—ESTATE TAX REFORM 
Sec. 401. Amendment to Internal Revenue Code of 1986. 
Sec. 402. Rate adjustment. 
Sec. 403. Required minimum 10-year term, etc., for grantor retained annuity 
trusts. 
Sec. 404. Certain transfer tax rules applicable to grantor trusts. 
Sec. 405. Elimination of generation-skipping transfer tax exemption for trans-
fers to certain persons. 
Sec. 406. Simplifying gift tax exclusion for annual gifts. 
Sec. 407. Clarification regarding disallowance of step-up in basis for property 
held in certain grantor trusts. 
Sec. 408. Limitation on discounts; valuation rules for certain transfers of non-
business assets. 
Sec. 409. Surcharge on high income estates and trusts. 
Sec. 410. Modification of rules for value of certain farm, etc., real property. 
Sec. 411. Modification of estate tax rules with respect to land subject to con-
servation easements. 
TITLE V—ACCESSIBILITY REQUIREMENTS 
Sec. 501. Accessibility requirements. 
TITLE I—MAKING HOUSING 
MORE AFFORDABLE 
SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 
(a) DEFINITIONS.—In this section: 
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(1) 
ELEMENTARY
SCHOOL; 
SECONDARY 
SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec-
ondary school’’ have the meanings given those terms 
in section 8101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801). 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a State; 
(B) a unit of general local government; or 
(C) an Indian tribe. 
(3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4103). 
(4) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given the term in section 101 of the Higher 
Education Act of 1965 (20 U.S.C. 1001). 
(5) METROPOLITAN
AREA; STATE; UNIT
OF 
GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro-
politan area’’, ‘‘State’’, and ‘‘unit of general local 
government’’ have the meanings given those terms in 
section 102 of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5302). 
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(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(b) ESTABLISHMENT.—Not later than 1 year after 
the date of enactment of this Act, the Secretary shall es-
tablish a program to award grants on a competitive basis 
to eligible entities to— 
(1) reform local land use restrictions to bring 
down the costs of producing affordable housing; and 
(2) remove unnecessary barriers to building af-
fordable units in their communities. 
(c) ELIGIBLE ACTIVITIES.—An eligible entity receiv-
ing a grant under this section may use funds to— 
(1) carry out any of the activities described in 
section 105 of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5305); 
(2) carry out any of the activities permitted 
under the Local and Regional Project Assistance 
Program under section 6702 of title 49, United 
States Code; or 
(3) modernize, renovate, or repair facilities used 
by public elementary schools, public secondary 
schools, and public institutions of higher education, 
including modernization, renovation, and repairs 
that— 
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(A) promote physical, sensory, and envi-
ronmental accessibility; and 
(B) are consistent with a recognized green 
building rating system. 
(d) APPLICATION.— 
(1) IN GENERAL.—An eligible entity desiring a 
grant under this section shall submit to the Sec-
retary an application that demonstrates that the eli-
gible entity has carried out, or is in the process of 
carrying out, initiatives that facilitate the expansion 
of the supply of well-located affordable housing. 
(2) ACTIVITIES.—Initiatives that meet the cri-
teria described in paragraph (1)— 
(A) include— 
(i) establishing ‘‘by-right’’ develop-
ment, which allows jurisdictions to admin-
istratively approve new developments that 
are consistent with their zoning code; 
(ii) revising or eliminating off-street 
parking requirements to reduce the cost of 
housing production; 
(iii) 
instituting 
measures 
that 
incentivize owners of vacant land to rede-
velop the space into affordable housing or 
other productive uses; 
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(iv) revising minimum lot size require-
ments and bans or limits on multifamily 
construction to allow for denser and more 
affordable development; 
(v) instituting incentives to promote 
dense development, such as density bo-
nuses; 
(vi) passing inclusionary zoning ordi-
nances that require a portion of newly de-
veloped units to be reserved for low- and 
moderate-income renters or homebuyers; 
(vii) streamlining regulatory require-
ments and shortening processes, reforming 
zoning codes, or other initiatives that re-
duce barriers to housing supply elasticity 
and affordability; 
(viii) 
allowing 
accessory 
dwelling 
units; 
(ix) using local tax incentives to pro-
mote development of affordable housing; 
and 
(x) implementing measures that pro-
tect tenants from harassment and displace-
ment, including— 
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(I) providing access to counsel 
for tenants facing eviction; 
(II) the prohibition of eviction ex-
cept for just cause; 
(III) measures intended to pre-
vent or mitigate sudden increases in 
rents; 
(IV) the repeal of laws that pre-
vent localities from implementing a 
measure described in subclause (I), 
(II), or (III); 
(V) protections against construc-
tive eviction; 
(VI) 
tenant 
right-to-organize 
laws; 
(VII) a cause of action for ten-
ants to sue landlords who threaten or 
begin an illegal eviction; and 
(VIII) landlord-tenant mediation 
or other non-eviction diversion pro-
grams; and 
(B) do not include activities that alter or-
dinances that govern wage and hour laws, fam-
ily and medical leave laws, health and safety re-
quirements, prevailing wage laws, or protections 
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for workers’ health and safety, anti-discrimina-
tion, and right to organize. 
(3) RELATION TO CONSOLIDATED PLAN.—An 
eligible entity shall include in an application sub-
mitted under paragraph (1) a description of how the 
planning and development of eligible activities de-
scribed in subsection (c) may advance an objective, 
or an aspect of an objective, included in the com-
prehensive housing affordability strategy and com-
munity development plan of the eligible entity under 
part 91 of title 24, Code of Federal Regulations, or 
any successor regulation (commonly referred to as a 
‘‘consolidated plan’’). 
(e) LABOR LAWS.— 
(1) IN GENERAL.—All laborers and mechanics 
employed by contractors or subcontractors in the 
performance of construction work financed in whole 
or in part with a grant received under this section 
shall be paid wages at rates not less than those pre-
vailing on similar construction in the locality, as de-
termined by the Secretary of Labor in accordance 
with subchapter IV of chapter 31 of title 40, United 
States Code (commonly known as the ‘‘Davis-Bacon 
Act’’). 
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(2) AUTHORITY
AND
FUNCTIONS.—With re-
spect to the labor standards specified in paragraph 
(1), the Secretary of Labor shall have the authority 
and functions set forth in Reorganization Plan 
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 
App.) and section 3145 of title 40, United States 
Code. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$2,000,000,000 for each of fiscal years 2025 through 
2029. 
SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA-
STRUCTURE. 
(a) HOUSING TRUST FUND.—Section 1338(a) of the 
Federal Housing Enterprises Financial Safety and Sound-
ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add-
ing at the end the following: 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Hous-
ing Trust Fund $48,000,000,000 for each of fiscal 
years 2025 through 2034.’’. 
(b) CAPITAL MAGNET FUND.—Section 1339 of the 
Federal Housing Enterprises Financial Safety and Sound-
ness Act of 1992 (12 U.S.C. 4569) is amended by adding 
at the end the following: 
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‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to the Capital Magnet 
Fund $3,000,000,000 for each of fiscal years 2025 
through 2034.’’. 
(c) PUBLIC
HOUSING
CAPITAL
FUND.—Section 
9(c)(2)(A) of the United States Housing Act of 1937 (42 
U.S.C. 1437g(c)(2)(A)) is amended to read as follows: 
‘‘(A) CAPITAL FUND.—For allocations of 
assistance 
from 
the 
Capital 
Fund, 
$70,000,000,000 for fiscal year 2025.’’. 
(d) INDIAN HOUSING BLOCK GRANT PROGRAM.— 
Section 108 of the Native American Housing Assistance 
and Self-Determination Act of 1996 (25 U.S.C. 4117) is 
amended— 
(1) by striking ‘‘such sums as may be necessary 
for each of fiscal years 2009 through 2013’’ and in-
serting ‘‘$2,500,000,000 for fiscal year 2025 and 
such sums as may be necessary for each of fiscal 
years 2026 through 2034’’; and 
(2) by striking the second sentence. 
(e) NATIVE HAWAIIAN HOUSING BLOCK GRANT PRO-
GRAM.—Section 824 of the Native American Housing As-
sistance and Self-Determination Act of 1996 (25 U.S.C. 
4243) is amended by striking ‘‘such sums as may be nec-
essary for each of fiscal years 2001, 2002, 2003, 2004, 
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and 2005’’ and inserting ‘‘$50,000,000 for fiscal year 
2025 and such sums as may be necessary for each of fiscal 
years 2026 through 2034’’. 
(f) RURAL HOUSING PROGRAMS.—Out of funds in 
the Treasury not otherwise appropriated, there is appro-
priated for fiscal year 2025— 
(1) to provide direct loans under section 502 of 
the Housing Act of 1949 (42 U.S.C. 1472), 
$420,000,000; 
(2) to provide assistance under section 514 of 
such Act (42 U.S.C. 1484), $54,000,000; 
(3) to provide assistance under section 515 of 
such Act (42 U.S.C. 1485), $420,000,000; 
(4) to provide assistance under section 516 of 
such Act (42 U.S.C. 1486), $75,000,000; 
(5) to provide grants under section 523 of such 
Act (42 U.S.C. 1490c), $75,000,000; and 
(6) to provide funding to carry out the Multi-
family Preservation and Revitalization Demonstra-
tion Program of the Rural Housing Service (as au-
thorized under sections 514, 515, and 516 of such 
Act (42 U.S.C. 1484, 1485, 1486)), $240,000,000. 
(g) MIDDLE CLASS HOUSING EMERGENCY FUND.— 
(1) DEFINITIONS.—In this subsection— 
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(A) the term ‘‘affordable rental housing 
unit’’ means a unit for which monthly rent is 
not more than 30 percent of the monthly area 
median income; and 
(B) the term ‘‘State’’ has the meaning 
given the term in section 3(b)(7) of the United 
States Housing Act of 1937 (42 U.S.C. 
1437a(b)(7)). 
(2) ESTABLISHMENT.—The Secretary of Hous-
ing and Urban Development shall establish and 
manage a fund, to be known as the ‘‘Middle Class 
Housing Emergency Fund’’, which shall be funded 
with any amounts as may be appropriated, trans-
ferred, or credited to the Fund under any provision 
law. 
(3) GRANTS.—From amounts available in the 
fund established under paragraph (2), the Secretary 
of Housing and Urban Development shall award 
grants on a competitive basis to State housing fi-
nance agencies located in a State in which— 
(A) there is a shortage of affordable rental 
housing units available to individuals with an 
income that is at or below the area median in-
come and median rents have risen on average 
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over the preceding 5 years substantially faster 
than the area median income; or 
(B) there is a shortage of housing units 
available for sale that are affordable to individ-
uals with an income that is at or below the area 
median income and median home prices have 
risen on average over the preceding 5 years 
substantially faster than the area median in-
come. 
(4) USE
OF
FUNDS.—Grants received under 
this subsection shall be used to fund— 
(A) the construction or acquisition, by non-
profit organizations, State or local agencies, 
special-purpose units of local government, resi-
dent councils organized to acquire housing, and 
other qualified purchasers (as defined by the 
Secretary of Housing and Urban Development), 
of rental housing units or units for purchase 
that are affordable to residents making less 
than 120 percent of the area median income; 
and 
(B) measures to prevent tenant displace-
ment and harassment, including— 
(i) the provision of legal advice and 
representation for tenants facing eviction; 
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(ii) enforcement of anti-harassment 
laws; 
(iii) emergency rental assistance; and 
(iv) other measures as specified by the 
Secretary of Housing and Urban Develop-
ment. 
(5) LABOR LAWS.— 
(A) IN GENERAL.—All laborers and me-
chanics employed by contractors or subcontrac-
tors in the performance of construction work fi-
nanced in whole or in part with a grant received 
under this subsection shall be paid wages at 
rates not less than those prevailing on similar 
construction in the locality as determined by 
the Secretary of Labor in accordance with sub-
chapter IV of chapter 31 of title 40, United 
States Code (commonly known as the ‘‘Davis- 
Bacon Act’’). 
(B) AUTHORITY
AND
FUNCTIONS.—With 
respect to the labor standards specified in sub-
paragraph (A), the Secretary of Labor shall 
have the authority and functions set forth in 
Reorganization Plan Numbered 14 of 1950 (64 
Stat. 1267; 5 U.S.C. App.) and section 3145 of 
title 40, United States Code. 
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(6) REGULATIONS.—The Secretary of Housing 
and Urban Development shall promulgate regula-
tions to carry out this subsection that include— 
(A) the metrics that the Secretary will use 
to determine eligibility for a grant under this 
subsection; 
(B) a requirement that grantees and sub-
grantees consult with impacted communities in 
policymaking and planning for the construction 
or acquisition of housing units as described in 
paragraph (4)(A); and 
(C) a requirement that all housing units 
constructed or acquired using grants awarded 
under the subsection are affordable to residents 
making less than 120 percent of the area me-
dian income in perpetuity. 
(7) APPROPRIATIONS.—Out of funds in the 
Treasury not otherwise appropriated, there is appro-
priated to the fund established under this subsection 
$4,000,000,000 for fiscal year 2025. 
SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE- 
OWNED PROPERTIES AND NON-PERFORMING 
LOANS. 
(a) FINDINGS.—Congress finds that— 
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(1) the Federal Housing Administration, the 
Federal National Mortgage Association, and the 
Federal Home Loan Mortgage Corporation provide 
critical homeownership opportunities that greatly 
benefit individuals, families, and communities; and 
(2) it is the purpose of this section to— 
(A) preserve owner-occupied homes with 
mortgages insured by the Federal Housing Ad-
ministration or purchased by the Federal Na-
tional Mortgage Association or the Federal 
Home Loan Mortgage Corporation for contin-
ued use as owner-occupied homes; and 
(B) direct that, upon the sale of those 
properties or transfer of those mortgages, cer-
tain percentages of those properties are sold to 
low- and moderate-income homeowners. 
(b) LOANS INSURED BY THE FEDERAL HOUSING AD-
MINISTRATION.—Title II of the National Housing Act (12 
U.S.C. 1707 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘Claim Without Conveyance of 
Title program’ means the program of the Federal 
Housing Administration carried out under section 
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203.368 of title 24, Code of Federal Regulations, or 
any successor regulation; and 
‘‘(2) the term ‘community partner’ has the 
meaning given the term ‘nonprofit organization’ in 
section 229 of the Low-Income Housing Preserva-
tion and Resident Homeownership Act of 1990 (12 
U.S.C. 4119). 
‘‘(b) REQUIREMENT.—Not later than 1 year after the 
date of enactment of this section, the Secretary shall de-
velop programs within the Federal Housing Administra-
tion to ensure that not less than 75 percent of the single- 
family residential properties conveyed to the Federal 
Housing Administration after foreclosure or conveyed to 
third parties under the Claim Without Conveyance of Title 
program are sold— 
‘‘(1) directly to an owner-occupant; or 
‘‘(2) to community partners that will— 
‘‘(A) rehabilitate or develop the property; 
and 
‘‘(B) sell the property to an owner-occu-
pant. 
‘‘(c) GUIDELINES.—Not later than 1 year after the 
date of enactment of this section, the Secretary shall de-
velop guidelines for the Claim Without Conveyance of Title 
program that provide an exclusive listing period during 
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which only eligible governmental entities, nonprofit organi-
zations approved by the Department of Housing and 
Urban Development, and owner-occupant buyers may sub-
mit bids. 
‘‘(d) ANTI-PREDATORY FEATURE.—Unless the Sec-
retary provides prior approval, the Secretary shall prohibit 
any purchaser of a real estate-owned property of the Fed-
eral Housing Administration from reselling the property 
within 15 years of purchase using a land installment con-
tract or through any other mechanism that does not trans-
fer title to the buyer at the time of sale. 
‘‘SEC. 260. SALE OF NON-PERFORMING LOANS. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘community partner’ has the 
meaning given the term in section 259; and 
‘‘(2) the term ‘covered mortgage’— 
‘‘(A) means any mortgage insured under 
this title that is secured by a single-family resi-
dential property; and 
‘‘(B) includes the promissory note secured 
by the mortgage described in subparagraph (A). 
‘‘(b) RESTRICTION ON SALE OR TRANSFER.—Except 
as provided in this section, the Secretary may not sell or 
transfer any covered mortgage. 
‘‘(c) CONDITIONS FOR SALE OR TRANSFER.— 
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‘‘(1) IN GENERAL.—The Secretary— 
‘‘(A) may sell or transfer a covered mort-
gage only if— 
‘‘(i) the capital level of the Fund is 
substantially below the capital ratio re-
quired under section 205(f)(2); 
‘‘(ii) the Secretary certifies that other 
reasonable measures are not available to 
restore the Fund to that capital ratio; and 
‘‘(iii) the Secretary complies with 
paragraph (2)(C), if applicable; and 
‘‘(B) may sell or transfer only such covered 
mortgages as are necessary to assist in restora-
tion of that capital ratio. 
‘‘(2) REQUIREMENTS FOR THE SECRETARY.— 
‘‘(A) IN GENERAL.—If the Secretary in-
tends to sell or transfer a covered mortgage, the 
Secretary shall provide the current borrower 
and all owners of record of the property secur-
ing the covered mortgage, or require that the 
current borrower and owners of record be pro-
vided, a separate written notice of the intent to 
sell the covered mortgage that— 
‘‘(i) is mailed via certified and first 
class mail not less than 90 days before the 
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‘‘(C) AUCTIONS.—The Secretary may not 
sell any covered mortgage through any type of 
non-performing loan sale auction program until 
the Secretary issues rules, through the notice 
and comment rule making procedures under 
section 553 of title 5, United States Code, that 
address essential aspects of any non-performing 
loan sale program, including— 
‘‘(i) the method of selection of loans 
for sale; 
‘‘(ii) notice to borrowers prior to in-
clusion of the loan in a sale; and 
‘‘(iii) review of loss mitigation status 
prior to the sale, selection of eligible bid-
ders, loss mitigation guidelines applicable 
to loan purchasers, and reporting require-
ments for purchasers. 
‘‘(3) CERTIFICATION REQUIREMENT FOR LEND-
ERS AND SERVICERS.— 
‘‘(A) CERTIFICATION.—As a condition to 
payment of an insurance claim under this title 
in connection with any non-performing loan 
sale, the lender or servicer of the loan shall pro-
vide the Secretary and the borrower with writ-
ten certification of the loss mitigation review 
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contained in the FHA Single Family Housing 
Policy Handbook 4000.1, or any successor 
handbook, which certification shall include a de-
scription of the actions the lender or servicer 
has taken, prior to transfer of the loan to the 
Secretary, to— 
‘‘(i) review the borrower for all avail-
able loss mitigation options of the Federal 
Housing Administration; and 
‘‘(ii) implement the options described 
in clause (i) that are appropriate to the 
borrower. 
‘‘(B) FALSE STATEMENTS.— 
‘‘(i) IN
GENERAL.—Any false state-
ment provided in a certification described 
in subparagraph (A) shall be a basis for— 
‘‘(I) recovery by the Secretary of 
any amounts paid under the insurance 
claim and any other penalties and 
sanctions authorized under Federal 
law; and 
‘‘(II) a private right of action by 
the borrower against the lender and 
servicer, with remedies to include 
compensatory and punitive damages 
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and an assessment of costs and attor-
ney’s fees. 
‘‘(ii) TRANSFERS.—Unless a bona fide 
purchaser has acquired title to the prop-
erty as a primary residence— 
‘‘(I) a certification described in 
subparagraph (A) that contains a 
false statement shall be a basis for re-
voking the transfer of the property; 
and 
‘‘(II) the pre-sale lender and 
servicer of the property shall— 
‘‘(aa) resume servicing the 
loan as a loan insured under this 
title; and 
‘‘(bb) reimburse the Sec-
retary for any insurance claim 
paid and all costs related to the 
sale of the property. 
‘‘(4) REQUIREMENTS FOR PURCHASERS.— 
‘‘(A) IN GENERAL.—Each purchaser of a 
covered mortgage shall offer the borrower on 
the covered mortgage loss mitigation options 
that allow for payment reduction at least as 
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great as would be available to the borrower if 
the loan had not been sold. 
‘‘(B) LOSS
MITIGATION
OPTIONS.—The 
specific formula, calculations, waterfall steps, 
and other terms for appropriate loss mitigation 
options described in subparagraph (A) shall be 
published by the Secretary, made available to 
the public, and included in a written notice 
given to borrowers before any acceleration or 
foreclosure is initiated after a loan sale. 
‘‘(5) REQUIREMENTS
FOR
TRANSFEREES.— 
With respect to a transferee, including any subse-
quent transferee, of a covered mortgage that is sold 
under this title— 
‘‘(A) the transferee shall certify in writing 
to the Secretary that the transferee will comply 
with the provisions of this section in the mar-
keting and transfer of any property received in 
the disposition of any transferred loan; 
‘‘(B) the transferee shall provide to the 
Secretary records documenting that the trans-
fers of those properties are in compliance with 
this section; and 
‘‘(C) the failure of the Secretary or the 
transferee to comply with the requirements 
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under this section for a loan in default shall be 
a defense to foreclosure, and a transferee may 
not execute a foreclosure judgment or order of 
sale, or conduct a foreclosure sale, until the 
transferee has complied with all requirements 
under this section. 
‘‘(d) LIMITATIONS.—With respect to covered mort-
gages that are sold under this title and acquired by the 
buyer through foreclosure sale, not less than 90 percent 
of the properties that are the subject of the covered mort-
gages shall be— 
‘‘(1) sold to owner-occupants; 
‘‘(2) operated or transferred to an entity that 
will operate the property as affordable rental hous-
ing for households below 80 percent of the area me-
dian income for a period of not less than 15 years; 
or 
‘‘(3) transferred or donated to a nonprofit 
agency that is certified by the Secretary and will re-
develop the property for owner occupancy or afford-
able rental housing. 
‘‘(e) PRIORITIZATION
OF SALES.—The Secretary 
shall implement policies, procedures, and controls to— 
‘‘(1) identify and recruit community partners; 
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‘‘(2) engage in consultations with community 
partners before the sale of a pool of covered mort-
gages under this title to determine whether that sale 
can be designed to meet the specific needs of the 
communities served by the community partners; and 
‘‘(3) prioritize the sale of pools of single-family 
mortgages to community partners by— 
‘‘(A) designing pools of covered mortgages 
for direct sale to a community partner, the 
price of which shall be set by the Secretary 
based on a pricing model that considers— 
‘‘(i) the current fair market value of 
the properties; and 
‘‘(ii) the potential impact of fore-
closures on those properties to the value of 
other homes that secure mortgages insured 
under this title in the same census tract; 
or 
‘‘(B) in the case of an auction, if the win-
ning bid is not from a community partner, per-
mitting any community partner that bid during 
that same auction to have a final opportunity to 
enter a higher bid on the pool.’’. 
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(c) FANNIE MAE.—Section 302 of the Federal Na-
tional Mortgage Association Charter Act (12 U.S.C. 1717) 
is amended by adding at the end the following: 
‘‘(d)(1) In this subsection, the term ‘covered mort-
gage’— 
‘‘(A) means any mortgage that is secured by a 
single-family residential property; and 
‘‘(B) includes the promissory note secured by 
the mortgage described in subparagraph (A). 
‘‘(2) The corporation may not sell or transfer any 
covered mortgage under this section unless the require-
ments of this subsection are met. 
‘‘(3)(A) If the corporation intends to sell or transfer 
a covered mortgage, the corporation shall provide the cur-
rent borrower and all owners of record of the property se-
curing the covered mortgage, or require that the current 
borrower and owners of record be provided, a separate 
written notice of the intent to sell the covered mortgage 
that— 
‘‘(i) is mailed via certified and first class mail 
not less than 90 days before the date on which the 
loan is included in any proposed sale; and 
‘‘(ii) includes— 
‘‘(I) a description of the loss mitigation op-
tions of the corporation that are available to 
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borrowers in financial distress and the obliga-
tion of servicers to consider borrowers in de-
fault for those options; 
‘‘(II) a description of the actions that the 
servicer of the loan has taken to review and im-
plement those options for the borrower; and 
‘‘(III) a description of the procedures the 
borrower may use to contest with the corpora-
tion the compliance by the servicer with that 
obligation. 
‘‘(B) The Federal Housing Finance Agency, as re-
ceiver for the corporation, may not authorize the corpora-
tion to sell any covered mortgage through any type of non- 
performing loan sale auction program until the Director 
of the Federal Housing Finance Agency issues rules, 
through the notice and comment rule making procedures 
under section 553 of title 5, United States Code, that ad-
dress essential aspects of any non-performing loan sale 
program, including— 
‘‘(i) the method of selection of loans for sale; 
‘‘(ii) notice to borrowers prior to inclusion of 
the loan in a sale; and 
‘‘(iii) review of loss mitigation status prior to 
the sale, selection of eligible bidders, loss mitigation 
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guidelines applicable to loan purchasers, and report-
ing requirements for purchasers. 
‘‘(4)(A) Each purchaser of a covered mortgage shall 
offer the borrower on the covered mortgage loss mitigation 
options that allow for payment reduction at least as great 
as would be available to the borrower if the loan had not 
been sold. 
‘‘(B) The specific formula, calculations, waterfall 
steps, and other terms for loss mitigation options de-
scribed in subparagraph (A) shall be published by the cor-
poration, made available to the public, and included in a 
written notice given to borrowers before any acceleration 
or foreclosure is initiated after a loan sale. 
‘‘(5) With respect to a transferee, including any sub-
sequent transferee, of a covered mortgage that is sold by 
the corporation under this section— 
‘‘(A) the transferee shall certify in writing to 
the corporation that the transferee will comply with 
the provisions of this subsection in the marketing 
and transfer of any property received in the disposi-
tion of any transferred loan; 
‘‘(B) the transferee shall provide to the corpora-
tion records documenting that the transfers of those 
properties are in compliance with this subsection; 
and 
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‘‘(C) the failure of the corporation or the trans-
feree to comply with the requirements under this 
subsection for a loan in default shall be a defense to 
foreclosure, and a transferee may not execute a fore-
closure judgment or order of sale, or conduct a fore-
closure sale, until the transferee has complied with 
all requirements under this subsection. 
‘‘(6) With respect to covered mortgages that are sold 
by the corporation under this section and foreclosed upon 
by the buyer, not less than 90 percent of the properties 
that are the subject of the covered mortgages in an auc-
tion shall be— 
‘‘(A) sold to owner-occupants; 
‘‘(B) operated or transferred to an entity that 
will operate the property as affordable rental hous-
ing for households below 80 percent of the area me-
dian income for a period of not less than 15 years; 
or 
‘‘(C) transferred or donated to a nonprofit 
agency that is certified by the corporation and will 
redevelop the property for owner occupancy or af-
fordable rental housing. 
‘‘(7) The corporation shall implement policies, proce-
dures, and controls to— 
‘‘(A) identify and recruit community partners; 
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‘‘(B) engage in consultations with community 
partners before the sale of a pool of covered mort-
gages under this section to determine whether that 
sale can be designed to meet the specific needs of 
the communities served by the community partners; 
and 
‘‘(C) prioritize the sale of pools of single-family 
mortgages to community partners by— 
‘‘(i) designing pools of covered mortgages 
for direct sale to a community partner, the 
price of which shall be set by the corporation 
based on a pricing model that considers— 
‘‘(I) the current fair market value of 
the properties; and 
‘‘(II) the potential impact of fore-
closures on those properties to the value of 
other homes in the same census tract; or 
‘‘(ii) in the case of an auction, if the win-
ning bid is not from a community partner, per-
mitting any community partner that bid during 
that same auction to have a final opportunity to 
enter a higher bid on the pool.’’. 
(d) FREDDIE MAC.—Section 305 of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1454) 
is amended by adding at the end the following: 
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‘‘(e)(1) In this subsection, the term ‘covered mort-
gage’— 
‘‘(A) means any mortgage that is secured by a 
single-family residential property; and 
‘‘(B) includes the promissory note secured by 
the mortgage described in subparagraph (A). 
‘‘(2) The Corporation may not sell or transfer any 
covered mortgage under this section unless the require-
ments of this subsection are met. 
‘‘(3)(A) If the Corporation intends to sell or transfer 
a covered mortgage, the Corporation shall provide the cur-
rent borrower and all owners of record of the property se-
curing the covered mortgage, or require that the current 
borrower and owners of record be provided, a separate 
written notice of the intent to sell the covered mortgage 
that— 
‘‘(i) is mailed via certified and first class mail 
not less than 90 days before the date on which the 
loan is included in any proposed sale; and 
‘‘(ii) includes— 
‘‘(I) a description of the loss mitigation op-
tions of the Corporation that are available to 
borrowers in financial distress and the obliga-
tion of servicers to consider borrowers in de-
fault for those options; 
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‘‘(II) a description of the actions that the 
servicer of the loan has taken to review and im-
plement those options for the borrower; and 
‘‘(III) a description of the procedures the 
borrower may use to contest with the Corpora-
tion the compliance by the servicer with that 
obligation. 
‘‘(B) The Federal Housing Finance Agency, as re-
ceiver for the Corporation, may not sell any covered mort-
gage through any type of non-performing loan sale auction 
program until the Director of the Federal Housing Fi-
nance Agency issues rules, through the notice and com-
ment rule making procedures under section 553 of title 
5, United States Code, that address essential aspects of 
any non-performing loan sale program, including— 
‘‘(i) the method of selection of loans for sale; 
‘‘(ii) notice to borrowers prior to inclusion of 
the loan in a sale; and 
‘‘(iii) review of loss mitigation status prior to 
the sale, selection of eligible bidders, loss mitigation 
guidelines applicable to loan purchasers, and report-
ing requirements for purchasers. 
‘‘(4)(A) Each purchaser of a covered mortgage shall 
offer the borrower on the covered mortgage loss mitigation 
options that allow for payment reduction at least as great 
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as would be available to the borrower if the loan had not 
been sold. 
‘‘(B) The specific formula, calculations, waterfall 
steps, and other terms for loss mitigation options de-
scribed in subparagraph (A) shall be published by the Cor-
poration, made available to the public, and included in a 
written notice given to borrowers before any acceleration 
or foreclosure is initiated after a loan sale. 
‘‘(5) With respect to a transferee, including any sub-
sequent transferee, of a covered mortgage that is sold by 
the Corporation under this section— 
‘‘(A) the transferee shall certify in writing to 
the Corporation that the transferee will comply with 
the provisions of this subsection in the marketing 
and transfer of any property received in the disposi-
tion of any transferred loan; 
‘‘(B) the transferee shall provide to the Cor-
poration records documenting that the transfers of 
those properties are in compliance with this sub-
section; and 
‘‘(C) the failure of the Corporation or the trans-
feree to comply with the requirements under this 
subsection for a loan in default shall be a defense to 
foreclosure, and a transferee may not execute a fore-
closure judgment or order of sale, or conduct a fore-
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closure sale, until the transferee has complied with 
all requirements under this subsection. 
‘‘(6) With respect to covered mortgages that are sold 
by the Corporation under this section and foreclosed upon 
by the buyer, not less than 90 percent of the properties 
that are the subject of the covered mortgages in an auc-
tion shall be— 
‘‘(A) sold to owner-occupants; 
‘‘(B) operated or transferred to an entity that 
will operate the property as affordable rental hous-
ing for households below 80 percent of the area me-
dian income for a period of not less than 15 years; 
or 
‘‘(C) transferred or donated to a nonprofit 
agency that is certified by the Corporation and will 
redevelop the property for owner occupancy or af-
fordable rental housing. 
‘‘(7) The Corporation shall implement policies, proce-
dures, and controls to— 
‘‘(A) identify and recruit community partners; 
‘‘(B) engage in consultations with community 
partners before the sale of a pool of covered mort-
gages under this section to determine whether that 
sale can be designed to meet the specific needs of 
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the communities served by the community partners; 
and 
‘‘(C) prioritize the sale of pools of single-family 
mortgages to community partners by— 
‘‘(i) designing pools of covered mortgages 
for direct sale to a community partner, the 
price of which shall be set by the Corporation 
based on a pricing model that considers— 
‘‘(I) the current fair market value of 
the properties; and 
‘‘(II) the potential impact of fore-
closures on those properties to the value of 
other homes in the same census tract; or 
‘‘(ii) in the case of an auction, if the win-
ning bid is not from a community partner, per-
mitting any community partner that bid during 
that same auction to have a final opportunity to 
enter a higher bid on the pool.’’. 
(e) SALE OF RE-PERFORMING LOANS.—The Federal 
Housing Enterprises Financial Safety and Soundness Act 
of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting 
after section 1328 (12 U.S.C. 4548) the following: 
‘‘SEC. 1329. SALE OF RE-PERFORMING LOANS. 
‘‘(a) BULK AUCTION OR GROUP SALES.—An enter-
prise may not conduct bulk auctions or other group sales 
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of single family re-performing residential loans unless the 
following requirements are met: 
‘‘(1) The enterprise establishes a system that 
provides priority to Federal, State, local, or Tribal 
governments or nonprofit organizations that have 
the capacity and experience required for buying, 
servicing, and resolving single family mortgage loans 
in a manner that promotes affordable housing, fair 
housing, affordable homeownership, provision of 
housing counseling, or neighborhood stabilization. 
‘‘(2) Clear, written notice is sent by the enter-
prise or servicer through certified and first-class 
mail to the borrower and all owners of record, with 
a copy sent to the enterprise if sent by the servicer, 
not less than 90 days before the inclusion of the 
loan in any proposed sale— 
‘‘(A) stating that the loan will be included 
in a bulk auction or group sale of re-performing 
loans; and 
‘‘(B) describing the bulk auction or group 
sale process, including— 
‘‘(i) the loss mitigation or other pro-
tections available to the borrower and 
other owners of record both before and 
after the auction or sale; and 
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‘‘(ii) the obligations of the servicer of 
the loan before and after the auction or 
sale, including loss mitigation require-
ments. 
‘‘(3) The enterprise requires in the terms of the 
bulk auction or group sale that purchasers take 
loans subject to the following requirements: 
‘‘(A) The purchaser is required to offer 
targeted payment relief options to borrowers 
that become more than 60 days delinquent on 
their mortgage after their loan is sold that in-
cludes deferral of principal and term extension 
options that reduce payments to an affordable 
level. 
‘‘(B) The purchaser is required to offer a 
deferral program to borrowers that become 
more than 60 days delinquent on their mort-
gage after their loan is sold that offers terms 
and protections at least as favorable as those 
available under loss mitigation guidelines of the 
enterprise, including the absence of fees, to bor-
rowers who can afford their pre-hardship mort-
gage payment. 
‘‘(C) Failure by the purchaser to follow the 
established loss mitigation guidelines shall serve 
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as a defense to a judicial foreclosure and a 
basis to enjoin or otherwise stay a non-judicial 
foreclosure. 
‘‘(D) Data reporting as provided under 
subsection (b)(1). 
‘‘(E) If a property becomes vacant, the 
purchaser shall not release the lien until the 
property is sold or donated. 
‘‘(F) Use of contract for deed, lease to 
own, or a land installment contract to sell or 
otherwise transfer any property that is secured 
by a purchased loan shall be prohibited unless 
the tenant or purchaser is a nonprofit organiza-
tion. 
‘‘(b) DATA AND REPORTING.— 
‘‘(1) PURCHASER REPORTING.—During the 4- 
year period following any auction or sale of single 
family re-performing residential mortgage loans 
under subsection (a), the Director shall require the 
enterprise to collect from each purchaser of such 
loans, including any subsequent purchaser of a loan, 
quarterly loan-level data regarding the treatment 
and outcome of the loan, including— 
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‘‘(A) loan characteristics, including loan 
type, remaining loan term, loan to value ratio, 
number of months in arrears, and loan status; 
‘‘(B) loss mitigation data, including wheth-
er loss mitigation was provided by the pur-
chaser, debt-to-income ratio and percent pay-
ment reduction for any modified loans, and per-
formance of modified loans; 
‘‘(C) demographic data for each borrower 
and any co-borrower, including race, national 
origin, sex, ZIP Code, and census tract, and, if 
available, disability status and veteran status; 
and 
‘‘(D) other purchaser actions, including 
charge offs and resales of loans and dates for 
such actions. 
‘‘(2) SEMIANNUAL REPORTS TO CONGRESS.— 
The Director shall submit to Congress, and make 
publicly available at no cost to the public in a readily 
accessible format on the website of the Agency, 
semi-annual reports on— 
‘‘(A) loans sold in an auction or sale under 
subsection (a) by each enterprise, disaggregated 
by pool, including— 
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‘‘(i) the number of loans and types of 
loans; 
‘‘(ii) mean and median delinquency 
and loan to value ratios at the time of the 
sale; 
‘‘(iii) the number and percentage of 
loans modified prior to auction or sale; and 
‘‘(iv) demographic and geographic 
data, including property locations by cen-
sus tract or larger geographic location if 
necessary to protect personally identifiable 
information; 
‘‘(B) the performance of loans after an 
auction 
or 
sale 
under 
subsection 
(a), 
disaggregated by loan pool, including the initial 
purchaser, current owner, current servicer, data 
summarizing any alternatives to foreclosure of-
fered and enacted, and data summarizing the 
data collected under subparagraph (A); and 
‘‘(C) the results of a fair lending analysis 
conducted based on the data in subparagraphs 
(A) and (B) to identify any discriminatory im-
pacts or outcomes associated with the auctions 
or sales. 
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‘‘(c) PENALTIES FOR NONCOMPLIANCE.—The enter-
prises may forcibly retain loans or properties, without pro-
viding compensation, from purchasers that do not meet 
the requirements under subsection (a)(3). 
‘‘(d) REGULATIONS.—The Director shall issue regu-
lations defining the terms of permissible auctions or sales 
in accordance with the requirements in this section.’’. 
TITLE 
II—TAKING 
THE 
FIRST 
STEPS TO REVERSE THE LEG-
ACY OF HOUSING DISCRIMI-
NATION AND GOVERNMENT 
NEGLIGENCE 
SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 
FIRST-TIME, 
FIRST-GENERATION 
HOME-
BUYERS. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE RESIDENT.—The term ‘‘eligible 
resident’’ means an individual who— 
(A) is a first-time homebuyer; 
(B) is a first-generation homebuyer; and 
(C) has an income that is less than— 
(i) 120 percent of the area median in-
come; or 
(ii) in the case of a homebuyer acquir-
ing a property for use as a principal resi-
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dence that is located in a high-cost area, 
as determined by the Secretary, 140 per-
cent of the area median income. 
(2) 
FIRST-GENERATION
HOMEBUYER.—The 
term ‘‘first-generation homebuyer’’ means a home-
buyer who is, as self-attested by the homebuyer, an 
individual— 
(A) whose parents do not, or did not at the 
time of their death, to the best of the individ-
ual’s knowledge, have any present ownership in-
terest in a principal residence in any State, ex-
cluding ownership of heir property; and 
(B) whose spouse or domestic partner has 
not, during the 3-year period ending on the 
date of purchase of a property using a grant 
under subsection (b), had any present owner-
ship interest in a principal residence in any 
State, excluding ownership of heir property, 
without regard to whether the spouse or domes-
tic partner is a co-borrower on a mortgage for 
the property being purchased. 
(3) FIRST-TIME HOMEBUYER.—The term ‘‘first- 
time homebuyer’’ means a homebuyer who is, as 
self-attested by the homebuyer, an individual (and if 
married or in a domestic partnership, the spouse or 
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domestic partner of the individual) who, during the 
3-year period ending on the date of purchase of a 
property using a grant under subsection (b)— 
(A) has had no present ownership in a 
principal residence in any State, excluding own-
ership of heir property; or 
(B) surrendered any present ownership in-
terest in a principal residence in any State, ex-
cluding ownership of heir property, as part of 
a divorce proceeding. 
(4) HEIR
PROPERTY.—The term ‘‘heir prop-
erty’’ means residential property for which title— 
(A) passed by operation of law through in-
testacy; and 
(B) is held by 2 or more heirs as tenants 
in common. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(6) STATE.—The term ‘‘State’’ includes the 
District of Columbia and any territory or possession 
of the United States. 
(b) ESTABLISHMENT.—There is established in the 
Treasury of the United States a fund that— 
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(1) shall be administered by the Secretary, act-
ing through the Office of Housing of the Depart-
ment of Housing and Urban Development; and 
(2) shall be used— 
(A) to provide grants to eligible residents 
to purchase a property for use as a principal 
residence; 
(B) for outreach to financial institutions in 
targeted areas and eligible residents, including 
for the administration of that outreach; 
(C) for counseling or financial education 
administered by counseling agencies approved 
by the Secretary in order to ensure sustainable 
homeownership; and 
(D) to maintain any records required to 
implement this section. 
(c) GRANT AMOUNT.—An eligible resident may re-
ceive a grant under subsection (b) in an amount equal 
to— 
(1) not more than 3.5 percent of the appraised 
value of the property to be purchased; or 
(2) if the appraised value of the property to be 
purchased exceeds the principal obligation amount 
limitation for mortgages insured under title II of the 
National Housing Act (12 U.S.C. 1707 et seq.), 3.5 
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percent of the maximum principal obligation limita-
tion for the property to be purchased. 
(d) RELATION TO FHA LOAN.—An eligible resident 
shall not be required to obtain a mortgage that is insured 
under title II of the National Housing Act (12 U.S.C. 
1707 et seq.) as a condition of receiving a grant under 
subsection (b). 
(e) LAYERING OF ASSISTANCE.—Receipt by an eligi-
ble recipient of assistance for a down payment from a 
source other than the fund established under subsection 
(b), including assistance from the Federal Government, a 
State or local government, or any other public, private, 
or nonprofit source, shall not affect the eligibility of the 
eligible recipient for assistance under subsection (b). 
(f) REGULATIONS AND DATABASE.—Not later than 
1 year after the date of enactment of this Act, the Sec-
retary shall— 
(1) in consultation with interested parties, in-
cluding housing counseling agencies approved by the 
Secretary and individuals or groups with expertise in 
fair housing, promulgate regulations relating to the 
use of the fund established under subsection (b); 
(2) promulgate regulations relating to the dis-
bursement of funds under this section to ensure that 
an eligible resident is able to receive funds before 
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the closing date for the home of the eligible resident, 
which may include creating a program that allows a 
lender to be reimbursed by the fund established 
under subsection (b) if the lender— 
(A) provides an eligible resident with funds 
for the closing; or 
(B) allows an eligible resident to be 
preapproved to receive assistance under this 
section when arranging financing for the home 
of the eligible resident; and 
(3) establish methods to verify that an indi-
vidual is an eligible resident. 
(g) APPROPRIATION.—Out of funds in the Treasury 
not otherwise appropriated, there is appropriated to the 
fund established under subsection (b) such sums as may 
be necessary for each of fiscal years 2025 through 2034 
to carry out the activities under subsection (b)(2). 
(h) INCLUSION OF PROGRAM IN HOME BUYING IN-
FORMATION BOOKLETS.—Section 5(b) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) 
is amended by inserting after paragraph (14) the fol-
lowing: 
‘‘(15) Information relating to the down pay-
ment assistance program established under section 
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201 of the American Housing and Economic Mobil-
ity Act of 2025.’’. 
(i) INCLUSION OF PROGRAM AS MORTGAGE PROD-
UCT.—Section 203(f)(1) of the National Housing Act (12 
U.S.C. 1709(f)(1)) is amended by inserting ‘‘, including 
the down payment assistance program established under 
section 201 of the American Housing and Economic Mo-
bility Act of 2025,’’ after ‘‘mortgage products’’. 
(j) RELIANCE ON BORROWER ATTESTATIONS.—No 
additional documentation beyond the borrower’s attesta-
tion shall be required to demonstrate eligibility under 
paragraphs (2) and (3) of subsection (a), and no creditor 
shall be subject to liability, including monetary penalties 
or requirements to indemnify a Federal agency or repur-
chase a loan that has been sold or securitized, for the pro-
vision of down payment assistance under this section to 
a borrower who does not meet the eligibility requirements 
under those paragraphs if the creditor does so in good 
faith reliance on borrower attestations of eligibility re-
quired by those paragraphs or any regulation promulgated 
to carry out those paragraphs. 
(k) REPAYMENT OF ASSISTANCE.— 
(1) REQUIREMENT.—An eligible resident who 
receives a grant under subsection (b) to purchase a 
property for use as a principal residence and does 
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not occupy the property as a principal residence for 
5 years or more shall repay to the Secretary a pro-
portional amount of the grant based on the number 
of years, if any, for which the eligible resident has 
occupied the property as a principal residence. 
(2) LIMITATION.—Notwithstanding paragraph 
(1), an eligible resident who receives a grant under 
subsection (b) to purchase a property for use as a 
principal residence and does not occupy the property 
as a principal residence for 5 years or more shall not 
be liable to the Secretary for repayment under para-
graph (1) of this subsection if— 
(A) the failure to occupy the property as a 
principal residence is due at least in part to a 
hardship; or 
(B) the eligible resident sells the property 
before the expiration of the 5-year period begin-
ning on the date of acquisition and the capital 
gains from the sale to a bona fide purchaser in 
an arm’s length transaction are less than the 
amount the eligible resident would be required 
to repay under paragraph (1). 
SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 
WITH AN APPRAISAL GAP. 
(a) DEFINITIONS.—In this section— 
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(1) the term ‘‘neighborhood with an appraisal 
gap’’ means a census tract in which the median sales 
price of a dwelling unit is lower than the median 
cost to acquire and rehabilitate, or build, a new 
dwelling unit; 
(2) the term ‘‘Secretary’’ means the Secretary 
of Housing and Urban Development; and 
(3) the term ‘‘State’’ has the meaning given the 
term in section 3(b)(7) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437a(b)(7)). 
(b) ESTABLISHMENT.—The Secretary shall establish 
a formula grant program to provide funding to States to 
support neighborhoods with an appraisal gap, including 
borrowers with negative equity in their primary residence 
in those neighborhoods, through— 
(1) measures that provide funds to borrowers 
to— 
(A) pay down arrears on an otherwise af-
fordable loan; 
(B) pay down arrears or principal on a 
loan in order to qualify for a loan modification 
that will allow the borrower to keep the home; 
(C) pay off, or pay down part of, a second 
mortgage or home equity line of credit; 
(D) pay off a small-dollar mortgage; 
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(E) pay delinquent taxes and tax liens; 
(F) pay off delinquent water or sewer bills 
and liens; and 
(G) pay for home repairs or maintenance 
or for modifications to bring the home into 
compliance with any applicable codes; and 
(2) programs to purchase or rehabilitate vacant 
or distressed properties to enhance neighborhood 
property values. 
(c) FORMULA.—The Secretary shall distribute 
amounts under this section to States based on— 
(1) the number of borrowers with a primary 
residence with negative equity in each State; and 
(2) the share of neighborhoods with an ap-
praisal gap in each State. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$5,000,000,000 for fiscal year 2025. 
SEC. 203. STRENGTHENING THE COMMUNITY REINVEST-
MENT ACT OF 1977. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Community Reinvestment Reform Act of 2025’’. 
(b) AMENDMENTS TO THE COMMUNITY REINVEST-
MENT ACT OF 1977.—The Community Reinvestment Act 
of 1977 (12 U.S.C. 2901 et seq.) is amended— 
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(1) by striking sections 802 and 803 (12 U.S.C. 
2901, 2902) and inserting the following: 
‘‘SEC. 802. FINDINGS AND PURPOSE. 
‘‘(a) FINDINGS.—Congress finds that— 
‘‘(1) regulated financial institutions are re-
quired by law to demonstrate that they serve the 
convenience and needs of the communities in which 
they are chartered or do business, in particular low- 
and moderate-income communities; 
‘‘(2) the convenience and needs of communities 
include the need for credit services, deposit services, 
transaction services, other financial services, and 
community development loans and investments; and 
‘‘(3) regulated financial institutions have a con-
tinuing and affirmative obligation to meet the credit 
or other financial needs of all the local communities 
in which they are chartered or do business, including 
communities in which— 
‘‘(A) the institutions make loans and do 
not accept deposits; or 
‘‘(B) the institutions accept deposits but 
do not make loans. 
‘‘(b) PURPOSE.—It is the purpose of this title to re-
quire each appropriate Federal financial supervisory agen-
cy to use its authority when examining regulated financial 
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institutions to ensure that those institutions meet the 
credit and other financial needs of the local communities 
in which they are chartered or do business consistent with 
the safe and sound operation of those institutions. 
‘‘SEC. 803. DEFINITIONS. 
‘‘In this title: 
‘‘(1) APPLICATION FOR A DEPOSIT FACILITY.— 
The term ‘application for a deposit facility’ means 
an application to the appropriate Federal financial 
supervisory agency otherwise required under Federal 
law or regulations thereunder for— 
‘‘(A) a charter for a national bank or Fed-
eral savings and loan association; 
‘‘(B) deposit insurance in connection with 
a newly chartered State bank, savings bank, 
savings and loan association, or similar institu-
tion; 
‘‘(C) the establishment of a domestic 
branch or other facility with the ability to ac-
cept deposits of a regulated financial institu-
tion; 
‘‘(D) the relocation of the home office or a 
branch office of a regulated financial institu-
tion; 
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‘‘(E) the merger or consolidation with, the 
acquisition of the assets of, or the assumption 
of the liabilities of a regulated financial institu-
tion requiring approval under section 18(c) of 
the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)); or 
‘‘(F) the acquisition of shares in, or the as-
sets of, a regulated financial institution requir-
ing approval under section 3 of the Bank Hold-
ing Company Act of 1956 (12 U.S.C. 1842). 
‘‘(2) APPROPRIATE FEDERAL BANKING AGEN-
CY.—The term ‘appropriate Federal banking agency’ 
has the meaning given the term in section 3 of the 
Federal Deposit Insurance Act (12 U.S.C. 1813). 
‘‘(3) APPROPRIATE
FEDERAL
FINANCIAL
SU-
PERVISORY
AGENCY.—The term ‘appropriate Fed-
eral financial supervisory agency’ means— 
‘‘(A) the appropriate Federal banking 
agency with respect to depository institutions 
and depository institution holding companies; 
and 
‘‘(B) the Bureau of Consumer Financial 
Protection with respect to any covered person 
supervised by the Bureau pursuant to section 
1024 of the Dodd-Frank Wall Street Reform 
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and Consumer Protection Act (12 U.S.C. 
5514). 
‘‘(4) ASSESSMENT
AREA.—The term ‘assess-
ment area’ means, with respect to a regulated finan-
cial institution, each community, including a State, 
metropolitan area, or urban or rural county, in 
which the institution— 
‘‘(A) maintains deposit-taking branches, 
automated teller machines, or retail offices; 
‘‘(B) is represented by an agent; or 
‘‘(C) issues a significant number of loans 
or other products relative to the total number 
of loans or other products made by the institu-
tion or relative to the total number of loans or 
other products offered by the private sector 
market. 
‘‘(5) CLIMATE RESILIENCY AND DISASTER MITI-
GATION.—The term ‘climate resiliency and disaster 
mitigation’ means activities that— 
‘‘(A) assist individuals and communities to 
prepare for, adapt to, and withstand climate-re-
lated risks, natural disasters, or weather-related 
disasters; 
‘‘(B) benefit or serve residents of low- to 
moderate-income census tracts or climate vul-
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nerable communities and do not directly result 
in forced or involuntary relocation of those resi-
dents; and 
‘‘(C) are done in conjunction with— 
‘‘(i) a plan, program or initiative of a 
Federal, State, local or Tribal government; 
or 
‘‘(ii) a mission-driven nonprofit orga-
nization that is focused on benefiting or 
serving targeted census tracts or climate 
vulnerable communities. 
‘‘(6) CLIMATE
VULNERABLE
COMMUNITIES.— 
The term ‘climate vulnerable communities’ means 
communities experiencing heightened risk and in-
creased sensitivity to climate change with less capac-
ity and fewer resources to cope with, adapt to, or re-
cover from climate impacts, as determined by the 
appropriate Federal financial supervisory agencies. 
‘‘(7) COMMUNITY BENEFITS PLAN.—The term 
‘community benefits plan’ means a plan that pro-
vides measurable goals for future amounts of safe 
and sound loans, investments, services, and other fi-
nancial products for low- and moderate-income com-
munities and other distressed or underserved com-
munities. 
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‘‘(8) COMMUNITY
DEVELOPMENT.—The term 
‘community development’ includes— 
‘‘(A) affordable housing for low- or mod-
erate-income individuals and avoidance of pat-
terns of lending resulting in the loss of afford-
able housing units and housing for low- and 
moderate-income individuals in high-opportunity 
areas; 
‘‘(B) community development services, in-
cluding counseling and successful mortgage or 
loan modifications of delinquent loans; 
‘‘(C) activities that promote integration; 
‘‘(D) activities that promote economic de-
velopment by financing small businesses or 
farms that meet the size eligibility requirements 
of the development company or small business 
investment company programs under section 
121.301 of title 13, Code of Federal Regula-
tions, or any successor regulation, with an em-
phasis on small businesses that have gross an-
nual revenues of not more than $1,000,000; 
‘‘(E) activities that revitalize or stabilize— 
‘‘(i) low- or moderate-income geog-
raphies; 
‘‘(ii) designated disaster areas; 
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‘‘(iii) distressed or underserved non-
metropolitan middle-income geographies 
designated by the Federal Financial Insti-
tutions Examination Council, based on— 
‘‘(I) rates of poverty, unemploy-
ment, and population loss; or 
‘‘(II) population size, density, 
and dispersion, if those activities help 
to meet essential community needs, 
including the needs of low- and mod-
erate-income individuals; or 
‘‘(iv) other distressed or underserved 
communities; 
‘‘(F) activities that promote physical, envi-
ronmental, and sensory accessibility in housing 
stock that is integrated into the community; 
and 
‘‘(G) other activities that promote the ob-
jectives of this title, as determined by the ap-
propriate Federal financial supervisory agen-
cies. 
‘‘(9) DEPOSITORY
INSTITUTION; DEPOSITORY 
INSTITUTION HOLDING COMPANY; INSURED DEPOSI-
TORY INSTITUTION.—The terms ‘depository institu-
tion’, ‘depository institution holding company’, and 
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‘insured depository institution’ have the meanings 
given those terms in section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813). 
‘‘(10) ENTIRE COMMUNITY.—The term ‘entire 
community’ means— 
‘‘(A) all of the assessment areas of a regu-
lated financial institution; and 
‘‘(B) areas outside of assessment areas de-
scribed in subparagraph (A) in which a regu-
lated financial institution has made loans or re-
ceived deposits. 
‘‘(11) ENUMERATED
CONSUMER
LAWS.—The 
term ‘enumerated consumer laws’ has the meaning 
given the term in section 1002 of the Consumer Fi-
nancial Protection Act of 2010 (12 U.S.C. 5481). 
‘‘(12) FOSSIL
FUEL.—The term ‘fossil fuel’ 
means coal, petroleum, methane gas (often referred 
to as ‘natural gas’), or any derivative of coal, petro-
leum, or methane gas that is used for fuel directly 
or indirectly, such as for generating electricity. 
‘‘(13) FOSSIL FUEL COMPANY.—The term ‘fos-
sil fuel company’ means any company that— 
‘‘(A) is among the 200 companies with the 
largest fossil fuel reserves in the world; 
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‘‘(B) is among the 30 largest public com-
pany owners in the world of coal-fired power 
plants; 
‘‘(C) has as its core business— 
‘‘(i) the construction or operation of 
fossil fuel infrastructure; or 
‘‘(ii) the exploration, extraction, refin-
ing, processing or distribution of fossil 
fuels; or 
‘‘(D) receives more than 50 percent of its 
gross revenue from companies that meet the 
definition under subparagraph (A), (B), or (C). 
‘‘(14) FOSSIL
FUEL
EXPANSION.—The term 
‘fossil fuel expansion’ means financing for new fossil 
fuel infrastructure projects, including financing of 
exploration activities, that would— 
‘‘(A) increase greenhouse gas emissions; 
and 
‘‘(B) increase the difficulty of achieving 
Federal, State, or local carbon emission reduc-
tion goals. 
‘‘(15) FOSSIL
FUEL
INFRASTRUCTURE.—The 
term ‘fossil fuel infrastructure’ means oil or gas 
wells, oil or gas pipelines and refineries, oil, coal or 
gas-fired power plants, oil and gas storage tanks, 
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fossil fuel export terminals, and any other infra-
structure used exclusively for fossil fuels, including 
facilities with carbon capture, utilization, and stor-
age. 
‘‘(16) GEOGRAPHY.—The term ‘geography’ 
means a census tract delineated by the Bureau of 
the Census in the most recent decennial census. 
‘‘(17) INTERMEDIATE BANK.—The term ‘inter-
mediate bank’ is a depository institution with assets 
of not less than $402,000,000 and less than 
$1,609,000,000, as adjusted annually for purposes 
of an examination under section 804. 
‘‘(18) LARGE BANK.—The term ‘large bank’ is 
a depository institution with assets of not less than 
$1,609,000,000, as adjusted annually for purposes 
of an examination under section 804. 
‘‘(19) OTHER DISTRESSED OR UNDERSERVED 
COMMUNITY.—The term ‘other distressed or under-
served community’ means an area or census tract 
that, according to a periodic review and data anal-
ysis by the appropriate Federal financial supervisory 
agencies on an interagency basis through the Fed-
eral Financial Institutions Examination Council of 
certain metrics, such as loans per households or 
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small business, is experiencing economic hardship or 
is underserved by financial institutions. 
‘‘(20) OTHER
UNDERSERVED
POPULATION.— 
The term ‘other underserved population’ means a 
population that is experiencing ongoing effects of 
discrimination or is relatively underserved by finan-
cial institutions, as measured by loans per house-
holds or other similar metrics. 
‘‘(21) REGULATED FINANCIAL INSTITUTION.— 
The term ‘regulated financial institution’ means— 
‘‘(A) an insured depository institution; 
‘‘(B) a depository institution holding com-
pany; and 
‘‘(C) a U.S. nonbank mortgage originator. 
‘‘(22) RETAIL LENDING ASSESSMENT AREA.— 
The term ‘retail lending assessment area’ means a 
geographical area in which a regulated financial in-
stitution— 
‘‘(A) makes a threshold number of loans, 
as determined by the appropriated Federal su-
pervisory agencies; 
‘‘(B) does not have branches, deposit-tak-
ing automated teller machines, or offices; and 
‘‘(C) is not represented by agents. 
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‘‘(23) SMALL BANK.—The term ‘small bank’ is 
a depository institution with assets of less than 
$402,000,000, as adjusted annually to take into ac-
count inflation for purposes of determining which in-
stitutions are subject to an examination under sec-
tion 804. 
‘‘(24) 
U.S. 
NONBANK
MORTGAGE
ORIGI-
NATOR.—The term ‘U.S. nonbank mortgage origi-
nator’ means a covered person subject to section 
1024 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (12 U.S.C. 5514) that of-
fers or provides— 
‘‘(A) origination of loans secured by real 
estate for use by consumers primarily for per-
sonal, family, or household purposes; or 
‘‘(B) loan modification or foreclosure relief 
services in connection with a loan described in 
subparagraph (A).’’; 
(2) in section 804 (12 U.S.C. 2903)— 
(A) by redesignating subsections (c) and 
(d) as subsections (f) and (g), respectively; 
(B) by striking subsections (a) and (b) and 
inserting the following: 
‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD-
ING COMPANIES.— 
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‘‘(1) IN GENERAL.—In connection with its ex-
amination of a regulated financial institution other 
than a U.S. nonbank mortgage originator, the ap-
propriate Federal financial supervisory agency shall 
perform the following: 
‘‘(A) Assess the record of the institution in 
meeting the credit and other financial needs of 
its entire community, in particular low- and 
moderate-income people and communities, and 
other distressed or underserved communities, 
and other underserved populations consistent 
with the safe and sound operation of the insti-
tution. 
‘‘(B) Assess the effectiveness of the fol-
lowing activities in meeting the credit and other 
financial needs of the assessment areas of the 
institution, consistent with the safe and sound 
operation of the institution: 
‘‘(i) Retail lending, including home, 
small business, consumer, automobile, and 
other lending and financial products, that 
responds to credit needs or other financial 
needs. 
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‘‘(ii) Community development lending 
and investments, which may include a con-
sideration of— 
‘‘(I) the origination of loans and 
other efforts by the institution to as-
sist existing low- and moderate-income 
residents to remain in affordable 
housing in their community; and 
‘‘(II) the origination of loans by 
the institution that result in the con-
struction, rehabilitation, or preserva-
tion of affordable housing units. 
‘‘(iii) Community development finance 
tests or similar tests developed by the ap-
propriate Federal banking agencies shall 
include separate quantitative measures for 
community development investments. The 
evaluation of investments shall positively or 
negatively affect test scores depending on 
bank performance, in community develop-
ment finance tests or similar tests. 
‘‘(iv) Retail financial services and 
community development services. 
‘‘(v) Evaluation of the responsiveness, 
affordability, and sustainability of retail fi-
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nancial services including credit and de-
posit products shall positively or negatively 
affect tests scores, depending on bank per-
formance, in the retail products and serv-
ice test or similar tests. 
‘‘(vi) Retail lending assessment areas 
shall be established for large banks and in-
termediate banks if not more than 90 per-
cent of the retail loans of the bank are in 
assessment areas containing their branches 
and deposit-taking automated teller ma-
chines. Large banks and intermediate bank 
evaluations shall also examine lending out-
side of retail lending assessment areas and 
assessment areas containing branches and 
deposit-taking automated teller machines. 
Evaluations of these loans shall be consid-
ered when assigning an institution level 
rating to the bank. 
‘‘(C) With respect to its evaluation of an 
application for a deposit facility by the institu-
tion— 
‘‘(i) consider the record described in 
subparagraph (A), the effectiveness of the 
activities described in subparagraph (B), 
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the overall rating of the institution under 
this section, and any improvement plans 
submitted pursuant to this section; 
‘‘(ii) provide an opportunity for public 
comment for a period of not less than 60 
days; 
‘‘(iii) consider changes in the commu-
nity reinvestment performance of the insti-
tution since the most recent rating under 
this section by the appropriate Federal fi-
nancial supervisory agency; and 
‘‘(iv) require— 
‘‘(I) a demonstration of public 
benefit, including a community bene-
fits plan with measurable goals re-
garding increasing responsible lending 
and other financial products that is 
commensurate with the ability of the 
institution to accomplish those goals; 
‘‘(II) that the institution consult 
with community-based organizations 
and other community stakeholders in 
developing the community benefits 
plan; and 
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‘‘(III) a public hearing for any 
institution that has a received a ‘need- 
to-improve’ or ‘low satisfactory’ grade 
in any individual assessment area dur-
ing the most recent examination. 
‘‘(2) CONSIDERATION
OF
LENDING
IN
PART-
NERSHIP WITH NON-DEPOSITORY LENDERS.— 
‘‘(A) IN GENERAL.—As part of assessing a 
financial institution under paragraph (1), the 
appropriate Federal financial supervisory agen-
cy shall evaluate the performance of the finan-
cial institution in originating loans for small 
farms, consumer loans (including residential 
mortgages, unsecured installment loans, ad-
vances, and lines of credit), and loans for small 
businesses (including unsecured installment 
loans, advances, and lines of credit) in partner-
ship with 1 or more non-depository lenders. 
‘‘(B) 
AFFORDABILITY
AND
SUSTAIN-
ABILITY.—In making the evaluation described 
in subparagraph (A), the appropriate Federal 
financial supervisory agency shall consider the 
affordability and sustainability of the loan origi-
nations made in partnership with 1 or more 
non-depository lenders. 
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‘‘(C) DEFINITIONS.—In this paragraph: 
‘‘(i) NON-DEPOSITORY LENDER.—The 
term ‘non-depository lender’ means a lend-
er that is not an insured depository institu-
tion. 
‘‘(ii) 
SMALL
BUSINESS; 
SMALL 
FARM.—The terms ‘small business’ and 
‘small farm’ have the meanings given those 
terms under the regulations promulgated 
by the Bureau implementing the amend-
ments made by section 1071 of the Dodd 
Frank Wall Street Reform and Consumer 
Protection Act of 2010 (Public Law 111– 
203; 124 Stat. 2056) under part 1002 of 
title 12, Code of Federal Regulations, or 
any successor regulation. 
‘‘(3) DEDUCTIONS FOR FOSSIL EXPANSION.— 
‘‘(A) IN GENERAL.—As part of assessing a 
financial institution under paragraph (1), the 
appropriate Federal financial supervisory agen-
cy shall— 
‘‘(i) determine the total dollar amount 
of loans and investments to fossil fuel com-
panies for the purposes of fossil fuel ex-
pansion that were originated or held by the 
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financial institution during the period cov-
ered by an examination under section 804; 
and 
‘‘(ii) deduct not more than that total 
dollar amount from the reported commu-
nity development loans and investments of 
the financial institution, both in the aggre-
gate and at the local market, or assess-
ment area, level. 
‘‘(B) 
ACTIVITIES.—The 
deduction 
de-
scribed in subparagraph (A)(ii) may only be off-
set by financing by the institution of climate re-
siliency and disaster mitigation activities spe-
cifically targeted to underserved communities, 
such as— 
‘‘(i) the development of climate resil-
ient affordable housing, schools, and small 
businesses 
(as 
defined 
in 
paragraph 
(2)(C)); 
‘‘(ii) clean electricity projects and 
microgrids; 
‘‘(iii) nature-based protective infra-
structure; 
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‘‘(iv) building decarbonization, which 
includes holistic home weatherization and 
health interventions; 
‘‘(v) lending to green small businesses 
and companies with legitimate public 
decarbonization transition plans, strate-
gies, and targets; 
‘‘(vi) electric public transit and elec-
tric vehicle charging infrastructure; 
‘‘(vii) investments in weatherization 
and climate resilience for local businesses; 
‘‘(viii) operational and technical sup-
port and capacity building for environ-
mental and climate justice organizations, 
including support for community groups 
active in environmental testing and train-
ing of community members to identify cli-
mate or environmental risks and opportu-
nities in their communities; and 
‘‘(ix) workforce development related to 
the transition away from fossil fuels, in-
cluding activities to train workers on skills 
needed to participate in carbon-pollution- 
free energy sectors. 
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‘‘(4) PENALTIES FOR SUSTAINED FAILING PER-
FORMANCE.—A regulated financial institution other 
than a U.S. nonbank mortgage originator that re-
ceives overall performance ratings under this section 
of ‘needs to improve’ or ‘substantial noncompliance’ 
for 2 consecutive examinations shall be subject to 
the following penalties, as deemed applicable by the 
appropriate Federal financial supervisory agency: 
‘‘(A) Restrictions on the institution’s 
growth (overall or in discrete areas), business 
activities, or payment of dividends, including re-
strictions on ability to sell loans originated by 
the institution to enterprises, as defined in sec-
tion 1303 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4502). 
‘‘(B) Recommendations to appropriate 
State agencies that State mortgage licenses be 
suspended or revoked with a statement of facts 
covering the justification for the recommended 
suspension or revocation. 
‘‘(C) Requiring the institution to simplify 
or reduce its operations, including that the in-
stitution reduce its asset size, divest subsidi-
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aries or business lines, or exit from 1 or more 
markets of operation. 
‘‘(D) Recovery, or claw back, of portions of 
executive compensation received during consecu-
tive evaluation periods under this section of 
which the institution received an overall per-
formance rating of ‘needs to improve’ or ‘sub-
stantial noncompliance’. 
‘‘(b) U.S. NONBANK MORTGAGE ORIGINATOR.— 
‘‘(1) IN GENERAL.—In connection with its ex-
amination of a U.S. nonbank mortgage originator, 
the appropriate Federal financial supervisory agency 
shall perform the following: 
‘‘(A) Assess the record of the U.S. 
nonbank mortgage originator in meeting the 
credit or other financial needs of its entire com-
munity, in particular low-income and moderate- 
income people and communities and other dis-
tressed or underserved communities and other 
underserved populations, consistent with the 
safe and sound operation of the U.S. nonbank 
mortgage originator. 
‘‘(B) Assess, as appropriate, the following 
activities in the assessment areas of the U.S. 
nonbank mortgage originator: 
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‘‘(ii) provide an opportunity for public 
comment for a period of not less than 60 
days; 
‘‘(iii) consider changes in the commu-
nity reinvestment performance of the U.S. 
nonbank mortgage originator since the 
most recent rating under this section by 
the appropriate Federal financial super-
visory agency; and 
‘‘(iv) require— 
‘‘(I) a demonstration that grant-
ing the application for a deposit facil-
ity is in the public interest, which 
shall include a submission of a com-
munity benefits plan, which shall be 
commensurate with the ability of the 
institution to accomplish the plan, by 
the U.S. nonbank mortgage originator 
to the appropriate Federal financial 
supervisory agency; 
‘‘(II) that the U.S. nonbank 
mortgage originator consult with com-
munity-based organizations and other 
community stakeholders in developing 
the community benefits plan; and 
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‘‘(III) a public hearing for any 
U.S. nonbank mortgage originator 
that has a received a ‘need-to-im-
prove’ or ‘low satisfactory’ grade in 
any individual assessment area during 
the most recent examination. 
‘‘(2) PENALTIES AND FEES.—The appropriate 
Federal financial supervisory agency shall have the 
same authority to assess penalties and fees under 
subsection (a)(4) for U.S. nonbank mortgage origi-
nator as is the case for regulated financial institu-
tions described in subsection (a). 
‘‘(3) AUTHORITY TO ADJUST EXAMINATION AND 
SUPERVISORY
FEES.—The appropriate Federal fi-
nancial supervisory agencies shall have the authority 
to adjust the dollar amount of examination and su-
pervisory fees, based in part on the rating of institu-
tions under this section. 
‘‘(c) REQUIREMENTS.— 
‘‘(1) IN GENERAL.—In connection with its ex-
amination of a regulated financial institution under 
subsection (a) or (b), the appropriate Federal finan-
cial supervisory agency shall— 
‘‘(A) consider public comments received by 
the appropriate Federal financial supervisory 
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agency regarding the record of the institution in 
meeting the credit or other financial needs of 
its entire community, including low- and mod-
erate-income communities, and hold not less 
than 1 public hearing to receive comments for 
large banks with assets of not less than 
$50,000,000,000; and 
‘‘(B) require— 
‘‘(i) an improvement plan for an insti-
tution that receives a rating of ‘low satis-
factory’ or lower on the written evaluation 
of the institution, or such a rating in any 
individual assessment area; and 
‘‘(ii) the improvement plan described 
in clause (i) to result in the reasonable 
likelihood that the institution will obtain a 
rating of at least ‘high satisfactory’ in 
meeting community credit or other finan-
cial needs in the relevant measure on the 
next examination. 
‘‘(2) IMPROVEMENT PLAN.— 
‘‘(A) IN GENERAL.—A regulated financial 
institution that is required to submit an im-
provement plan required under paragraph 
(1)(B) shall submit the plan in writing to the 
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appropriate Federal financial supervisory agen-
cy not later than 90 days after receiving notice 
that the regulated financial institution is re-
quired to submit the plan. 
‘‘(B) PUBLIC COMMENT.—Upon receipt of 
an improvement plan of a regulated financial 
institution required under paragraph (1)(B), 
the appropriate Federal financial supervisory 
agency shall— 
‘‘(i) make the plan available to the 
public for review and comment for a period 
of not less than 60 days; and 
‘‘(ii) require the regulated financial 
institution to revise, as appropriate, the 
improvement plan in response to the public 
comments received under the public review 
and comment period described in clause (i) 
and submit the plan to the appropriate 
Federal financial supervisory agency not 
later than 60 days after the end of that pe-
riod. 
‘‘(3) EXAMINATION
OF
CERTAIN
REGULATED 
FINANCIAL INSTITUTIONS.—In the case of a regu-
lated financial institution whose lending or other 
business is not clustered in geographical areas and 
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is thinly dispersed across the country, the institution 
shall— 
‘‘(A) be evaluated under subsection (a) or 
(b), as applicable— 
‘‘(i) by considering the effectiveness of 
the institution in serving customers or bor-
rowers, with a special emphasis on low- 
and moderate-income individuals and other 
underserved populations across the country 
regardless of where the individuals reside; 
and 
‘‘(ii) based on objective thresholds de-
veloped by the appropriate Federal finan-
cial supervisory agencies to clarify when 
lending or other business is dispersed 
across the country and not clustered in 
distinct geographical areas, which may in-
clude low levels of lending or other finan-
cial products across States or other areas; 
and 
‘‘(B) meet the needs of other distressed or 
underserved communities. 
‘‘(d) CONSIDERATION.—Remediation of consumers 
pursuant to an order by a court or administrative body 
or a settlement with a government agency or a private 
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party may not be considered in an assessment conducted 
under subsection (a) or (b). 
‘‘(e) RULE OF CONSTRUCTION.—An evaluation of a 
bank holding company under this section shall incorporate 
evaluations of subsidiary regulated financial institutions 
made by the appropriate Federal financial supervisory 
agency of each subsidiary, if applicable.’’; 
(C) in subsection (f), as so redesignated— 
(i) by striking paragraph (2); 
(ii) by redesignating paragraph (3) as 
paragraph (2); and 
(iii) in paragraph (2), as so redesig-
nated, by striking subparagraph (C); and 
(D) in subsection (g), as so redesignated, 
by striking ‘‘subsection (a)’’ and inserting ‘‘sub-
sections (a) and (b)’’; 
(3) in section 807 (12 U.S.C. 2906)— 
(A) in subsection (a)— 
(i) by striking ‘‘an insured depository 
institution’’ and inserting ‘‘a regulated fi-
nancial institution’’; and 
(ii) by inserting ‘‘or financial’’ after 
‘‘credit’’; 
(B) in subsection (b)— 
(i) in paragraph (1)— 
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(I) in subparagraph (A)— 
(aa) in clause (ii), by strik-
ing ‘‘and’’ at the end; 
(bb) by redesignating clause 
(iii) as clause (iv); and 
(cc) by inserting after clause 
(ii) the following: 
‘‘(iii) disclose whether the institution en-
gaged in acts or practices that the Bureau of 
Consumer Financial Protection has determined, 
and has publicly disclosed, violate the enumer-
ated consumer laws; and’’; and 
(II) by striking subparagraph (B) 
and inserting the following: 
‘‘(B) EVALUATION ON AN ASSESSMENT AREA 
BASIS.—The information required under subsections 
(a) and (b) of section 804 shall be presented sepa-
rately for each assessment area. 
‘‘(C) TREATMENT
WITH
RESPECT
TO
VIOLA-
TIONS
OF
ENUMERATED
CONSUMER
LAWS.—If a 
regulated financial institution has engaged in acts or 
practices that the appropriate Federal financial su-
pervisory agency has determined to be unfair, decep-
tive, or abusive or acts or practices that violate enu-
merated consumer laws intended to ensure the fair, 
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equitable, and nondiscriminatory access to credit for 
individuals and communities that are enforced by 
the Bureau of Consumer Financial Protection or 
other Federal or State agencies, the written evalua-
tion shall be negatively influenced in a manner com-
mensurate with the extent of the harm suffered by 
those individuals and communities.’’; 
(ii) in paragraph (2)— 
(I) by striking subparagraphs 
(A), (B), (C), and (D) and inserting 
the following: 
‘‘(A) ‘Outstanding record of meeting com-
munity credit or other financial needs’. 
‘‘(B) ‘High Satisfactory record of meeting 
community credit or other financial needs’. 
‘‘(C) ‘Low Satisfactory record of meeting 
community credit or other financial needs’. 
‘‘(D) ‘Needs to improve record of meeting 
community credit or other financial needs’. 
‘‘(E) ‘Substantial noncompliance in meet-
ing 
community 
credit 
or 
other 
financial 
needs’.’’; and 
(iii) by inserting after the flush text 
following paragraph (2) the following: 
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‘‘(3) ADDITIONAL
AUTHORITY.—The appro-
priate Federal financial supervisory agencies may— 
‘‘(A) alter the ratings under this sub-
section to change or include additional ratings 
for the overall ratings and subtest ratings; and 
‘‘(B) develop an accompanying point sys-
tem that includes ranges for each rating cat-
egory under paragraph (2).’’; 
(C) by redesignating subsection (e) as sub-
section (f); and 
(D) by inserting after subsection (d) the 
following: 
‘‘(e) APPEALS OF RATING.—If a regulated financial 
institution appeals the assigned rating under this section, 
the appropriate Federal financial supervisory agency 
shall— 
‘‘(1) post a public notice of the appeal on the 
part of the website of the appropriate Federal finan-
cial supervisory agency that contains information on 
this title; and 
‘‘(2) provide an opportunity for public comment 
on the appeal.’’; 
(4) in section 806 (12 U.S.C. 2905)— 
(A) by striking ‘‘Regulations’’ and insert-
ing the following: 
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‘‘(a) IN GENERAL.—Regulations’’; 
(B) in subsection (a), as so designated, by 
striking ‘‘companies,,’’ and inserting ‘‘compa-
nies,’’; and 
(C) by adding at the end the following: 
‘‘(b) PERIODIC REVIEW.—Not later than 5 years 
after the date of enactment of this subsection and every 
5 years thereafter, the appropriate Federal financial su-
pervisory agencies shall— 
‘‘(1) review the regulations promulgated to 
carry out this title; and 
‘‘(2) report to Congress any recommendations 
for updates to the regulations and this title, which 
may include consideration of— 
‘‘(A) data collection under this title; 
‘‘(B) the rigor of evaluations under this 
title; 
‘‘(C) the assessment area coverage of loans 
and deposits; and 
‘‘(D) the extent to which the provisions of 
this title are reducing disparities in access to 
credit and capital by income and race.’’; and 
(5) by adding at the end the following: 
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‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE-
MENTS. 
‘‘(a) DATA COLLECTION.— 
‘‘(1) CONSUMER LOANS.— 
‘‘(A) IN GENERAL.—Each regulated finan-
cial institution shall collect and maintain in ma-
chine readable form, as prescribed by the ap-
propriate Federal financial supervisory agency, 
data for consumer loans originated or pur-
chased by the regulated financial institution, in-
cluding motor vehicle loans, credit cards, lines 
of credit, and other secured or unsecured loans. 
The regulated financial institution shall main-
tain data separately for each category of con-
sumer loan, including the following for each 
loan: 
‘‘(i) A unique number or alpha-nu-
meric symbol that can be used to identify 
the relevant loan. 
‘‘(ii) The loan amount at origination 
or purchase. 
‘‘(iii) The loan location. 
‘‘(iv) The gross annual income of the 
borrower that the regulated financial insti-
tution considered in making its credit deci-
sion. 
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‘‘(B) EXEMPTIONS.—The appropriate Fed-
eral financial supervisory agencies may exempt 
classes of regulated financial institutions from 
the requirements under subparagraph (A) due 
to low levels of consumer lending or other fac-
tors. 
‘‘(2) COMMUNITY
DEVELOPMENT
LOANS
AND 
INVESTMENTS.— 
‘‘(A) COLLECTION AND MAINTENANCE OF 
DATA.—Each regulated financial institution 
shall collect and maintain in machine readable 
form, as prescribed by the appropriate Federal 
financial supervisory agency, data on the cat-
egories of community development lending and 
investments, including data regarding financing 
affordable housing, small business development, 
and economic development. 
‘‘(B) PUBLIC DISSEMINATION.—Each reg-
ulated financial institution and the appropriate 
Federal financial supervisory agencies shall— 
‘‘(i) publicly disseminate the data de-
scribed in subparagraph (A) on a county 
level and for categories of census tracts in-
cluding low- and moderate-income census 
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tracts or other distressed and underserved 
census tracts; and 
‘‘(ii) consider disseminating the data 
described in subparagraph (A) by indi-
vidual census tracts in addition to the cat-
egories described in clause (i). 
‘‘(3) ASSESSMENT AREA DATA.— 
‘‘(A) IN GENERAL.—Each regulated finan-
cial institution shall collect and report to the 
appropriate Federal financial supervisory agen-
cy by March 1 of each year a list for each as-
sessment area showing the geographies within 
the area. 
‘‘(B) 
PUBLICATION.—The 
appropriate 
Federal financial supervisory agencies shall 
make the list of assessment areas reported by 
each regulated financial institution under sub-
paragraph (A) publicly available on the part of 
the website of the appropriate Federal financial 
supervisory agency that contains information on 
this title. 
‘‘(4) DEPOSITS.—The appropriate Federal fi-
nancial supervisory agencies shall— 
‘‘(A) collect data from regulated financial 
institutions that reflects— 
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‘‘(i) the number of customers of those 
institutions that reside in categories of 
census tracts including low- and moderate- 
income census tracts or other distressed 
and underserved census tracts and the dol-
lar amount of deposits of those customers; 
and 
‘‘(ii) the number of small businesses 
that are located in the census tract cat-
egories described in clause (i); and 
‘‘(B) consider the dissemination of the de-
posit data collected under subparagraph (A) by 
individual census tracts in addition to the cat-
egories described in that subparagraph. 
‘‘(b) AGGREGATE DISCLOSURE STATEMENTS.— 
‘‘(1) IN GENERAL.—Each appropriate Federal 
financial supervisory agency shall prepare annually, 
for each assessment area, a disclosure statement of 
home, small business, small farm, and consumer 
lending for each regulated financial institution sub-
ject to reporting under this section and an aggre-
gated statement for all reporting institutions com-
bined, which shall indicate, for each assessment 
area, the number and amount of all small business, 
small farm, and consumer loans originated or pur-
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chased sorted by income level of borrowers, race and 
ethnicity of borrowers, revenue size of small busi-
nesses and farms, and categories of census tracts. 
‘‘(2) DEPOSITS
AND
COMMUNITY
DEVELOP-
MENT LOANS AND INVESTMENTS.—An appropriate 
Federal financial supervisory agency shall include 
data on deposits and community development loans 
and investments in the disclosure statements pre-
pared under paragraph (1). 
‘‘(3) ADJUSTED FORM.—An appropriate Fed-
eral financial supervisory agency may adjust the 
form of the disclosure statement prepared under 
paragraph (1) if necessary, because of special cir-
cumstances, to protect the privacy of a borrower or 
the competitive position of a regulated financial in-
stitution. 
‘‘(c) CENTRAL DATA DEPOSITORIES.—The Federal 
Financial Institutions Examination Council, in consulta-
tion with the appropriate Federal financial supervisory 
agencies, shall implement a system— 
‘‘(1) to allow the public to access online and in 
a searchable format the data maintained under 
paragraphs (1) through (4) of subsection (a); and 
‘‘(2) that ensures that personally identifiable fi-
nancial information is not disclosed to public. 
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‘‘(d) LIMITATION.—An appropriate Federal financial 
supervisory agency may not use the authorities of the ap-
propriate Federal financial supervisory agency under this 
section to obtain a record from a regulated financial insti-
tution for the purpose of gathering or analyzing the per-
sonally identifiable financial information of a consumer. 
‘‘SEC. 811. COMMUNITY ADVISORY COMMITTEES. 
‘‘(a) DEPOSITORY INSTITUTIONS.—Each regulated 
financial institution that is not a U.S. nonbank mortgage 
originator shall form a separate Community Advisory 
Committee (which shall be composed of a diverse set of 
consumer, housing, community development, and other 
stakeholder groups) in each of the following: 
‘‘(1) With respect to a depository institution 
with consolidated assets equal to or greater than 
$2,000,000,000 the branches of which are located in 
1 census region, each metropolitan statistical area 
where the financial institution or any subsidiaries of 
the financial institution have a branch or other facil-
ity (including an automated teller machine) and each 
metropolitan statistical area where the financial in-
stitution has a substantial number of customers who 
maintain deposit accounts with the financial institu-
tion. 
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‘‘(2) With respect to a depository institution 
with consolidated assets equal to or greater than 
$2,000,000,000 the branches of which are located in 
more than 1 census region, each census division 
within each of the regions. 
‘‘(3) With respect to a depository institution 
with 
consolidated 
assets 
of 
less 
than 
$2,000,000,000, each State where the financial in-
stitution or any subsidiaries of the financial institu-
tion are located. 
‘‘(b) U.S. NONBANK MORTGAGE ORIGINATORS.— 
Each U.S. nonbank mortgage originator shall form a sepa-
rate Community Advisory Committee (which shall be com-
posed of a diverse set of consumer, housing, community 
development, and other stakeholder groups) in each of the 
following: 
‘‘(1) With respect to a U.S. nonbank mortgage 
originator that is required to make a number of dis-
closures under the Home Mortgage Disclosure Act of 
1975 (12 U.S.C. 2801 et seq.) that is less than the 
national median, each State in which the U.S. 
nonbank mortgage originator offers loans. 
‘‘(2) With respect to a U.S. nonbank mortgage 
originator that is required to make a number of dis-
closures under the Home Mortgage Disclosure Act of 
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1975 (12 U.S.C. 2801 et seq.) that is more than the 
national median, each census division within the cen-
sus regions in which the U.S. nonbank mortgage 
originator offers loans. 
‘‘(c) BIANNUAL CONSULTATION.—The executives of 
each regulated financial institution shall meet not less fre-
quently than twice per year with the Community Advisory 
Committees of the regulated financial institution formed 
under subsection (a) or (b), as applicable— 
‘‘(1) to discuss the financial institution’s cur-
rent work to meet the credit and deposit needs of 
low- and moderate-income individuals and under-
served 
communities, 
persons 
with 
disabilities, 
LGBTQ+ communities, and Chinese, Asian Indian, 
Filipino, Japanese, Korean, Vietnamese, Pakistani, 
Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur-
mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 
Hispanic or Latino, Black or African American, 
American Indian and Alaska Native, Native Hawai-
ian, 
Samoan, 
Chamorro, 
Tongan, 
iTaukei, 
Marshallese, and Other Pacific Islander commu-
nities, as applicable to the geographic areas of the 
financial institution; 
‘‘(2) with respect to an institution described in 
subsection (a)(2) or a U.S. nonbank mortgage origi-
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nator described in subsection (b)(2), to assist the ex-
ecutives in developing and updating a plan for how 
the institution will work to meet the credit needs of 
the institution’s entire community, including low- 
and moderate-income neighborhoods; and 
‘‘(3) to discuss the institution’s data (which 
shall be disaggregated by Chinese, Asian Indian, Fil-
ipino, Japanese, Korean, Vietnamese, Pakistani, 
Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur-
mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 
Hispanic or Latino, Black or African American, 
American Indian and Alaska Native, and Native Ha-
waiian, 
Samoan, 
Chamorro, 
Tongan, 
iTaukei, 
Marshallese and Other Pacific Islander communities, 
as applicable to the institution’s geographic areas) 
on— 
‘‘(A) mortgage lending and lending to 
small businesses and small farms, as defined in 
section 804(a)(2)(C); 
‘‘(B) retail products and services; 
‘‘(C) community development services; and 
‘‘(D) community development financing. 
‘‘(d) SPECIFIC CONSULTATIONS.—In addition to the 
consultations required under paragraph (2), the executives 
of a depository institution described in subsection (a)(2) 
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shall meet with the Community Advisory Committee of the 
institution before— 
‘‘(1) the institution applies for a merger or ac-
quisition; 
‘‘(2) the institution, or any subsidiary of the in-
stitution, applies for deposit insurance; 
‘‘(3) the institution applies to open a new 
branch or to relocate an existing branch; or 
‘‘(4) the institution provides notice that it 
would close a branch or other facility. 
‘‘SEC. 812. STUDY ON DISCRIMINATION AND DISPARITIES IN 
ACCESS TO CREDIT. 
‘‘(a) STUDY.—Not later than the end of the 2-year 
period beginning on the date of enactment of this section, 
and every 2 years thereafter, the appropriate Federal fi-
nancial supervisory agencies shall, jointly, and in consulta-
tion with such other Federal or State agencies as the ap-
propriate Federal financial supervisory agencies determine 
appropriate, complete an interagency statistical study to 
identify— 
‘‘(1) metropolitan areas and rural counties that 
either experience ongoing discrimination or exhibit 
significant racial disparities in access to credit for 
any racial or ethnic group; and 
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‘‘(2) significant disparities in access to branches 
by racial or ethnic composition of census tract and 
disparities in access to community development fi-
nancing by racial or ethnic composition of census 
tract. 
‘‘(b) USE OF DATA.—In carrying out each study re-
quired under subsection (a), the appropriate Federal fi-
nancial supervisory agencies shall make use of data includ-
ing— 
‘‘(1) data obtained under the Home Mortgage 
Disclosure Act of 1975 (12 U.S.C. 2801 et seq.); 
‘‘(2) data obtained under section 704B of the 
Equal Credit Opportunity Act (15 U.S.C. 1691c–2); 
‘‘(3) data obtained under this Act; 
‘‘(4) available State data; and 
‘‘(5) information contained in public litigation 
against regulated financial institutions for redlining 
or lending discrimination (including litigation initi-
ated by the Bureau of Consumer Financial Protec-
tion, the Department of Housing and Urban Affairs, 
the Department of Justice, or by private parties). 
‘‘(c) REPORT.—Upon the completion of each study 
required under subsection (a), the appropriate Federal fi-
nancial supervisory agencies shall jointly submit to the 
Committee on Banking, Housing, and Urban Affairs of 
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the Senate and the Committee on Financial Services of 
the House of Representatives a report that includes— 
‘‘(1) all findings and determinations made in 
carrying out the study; and 
‘‘(2) policy recommendations to remedy the dis-
crimination and disparities identified in the study. 
‘‘SEC. 813. PUBLIC REGISTRIES. 
‘‘The appropriate Federal supervisory financial agen-
cies, acting through the Federal Financial Institutions Ex-
amination Council, shall— 
‘‘(1) maintain a list of community-based organi-
zations and other stakeholders who wish to be listed 
and who have commented on examinations con-
ducted under section 804 and applications regarding 
community needs and bank performance; and 
‘‘(2) conduct outreach to community groups 
and strive for geographical diversity, gender and ra-
cial diversity, and diversity in terms of various types 
of needs, including affordable housing and economic 
development to community facilities.’’. 
(c) AMENDMENT TO THE BANK HOLDING COMPANY 
ACT OF 1956.—Section 4(k)(6) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(k)(6)) is amended 
to read as follows: 
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‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT 
REQUIRED.— 
‘‘(A) IN GENERAL.—No financial holding 
company shall directly or indirectly acquire, and 
no company that becomes a financial holding 
company shall directly or indirectly acquire con-
trol of, any company in the United States, in-
cluding through merger, consolidation, or other 
type of business combination, that is engaged in 
activities permitted under this subsection or 
subsection (n) or (o), unless— 
‘‘(i) the holding company has provided 
notice to the Board, not later than 60 days 
prior to the proposed acquisition or prior 
to becoming a financial holding company, 
and during that time period, or such 
longer time period not exceeding an addi-
tional 60 days, as established by the 
Board; 
‘‘(ii) the Board has provided public 
notice and opportunity for comment for 
not less than 60 days; and 
‘‘(iii) the Board has not issued a no-
tice disapproving the proposed acquisition 
or retention. 
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‘‘(B) FACTORS FOR CONSIDERATION.—In 
reviewing any prior notice filed under this para-
graph, the Board shall— 
‘‘(i) consider the overall rating of the 
financial holding company under the Com-
munity Reinvestment Act of 1977 (12 
U.S.C. 2901 et seq.) and any improvement 
plans submitted pursuant to that Act; 
‘‘(ii) provide opportunity for public 
comment for a period of not less than 60 
days; 
‘‘(iii) consider changes in the commu-
nity reinvestment performance of the fi-
nancial holding company since the last rat-
ing under the Community Reinvestment 
Act of 1977 (12 U.S.C. 2901 et seq.) by 
the appropriate Federal financial super-
visory agency; and 
‘‘(iv) require— 
‘‘(I) a demonstration that grant-
ing the application for a deposit facil-
ity is in the public interest, which 
shall include submission to the appro-
priate Federal financial supervisory 
agency of a community benefits plan 
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100 
commensurate with the ability of the 
institution to carry out that plan; 
‘‘(II) that the institution consult 
with community-based organizations 
and other community stakeholders in 
developing the community benefits 
plan; and 
‘‘(III) a public hearing for any 
bank that has received a ‘need-to-im-
prove’ or ‘low satisfactory’ grade in 
any assessment area during the last 
examination under the Community 
Reinvestment Act of 1977 (12 U.S.C. 
2901 et seq.).’’. 
(d) TECHNICAL AND CONFORMING AMENDMENT.— 
Section 10(c)(2)(H)(i) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(c)(2)(H)(i)) is amended by striking ‘‘section 
804(c) of the Community Reinvestment Act of 1977 (12 
U.S.C. 2903(c))’’ and inserting ‘‘section 804(f) of the 
Community Reinvestment Act of 1977 (12 U.S.C. 
2903(f))’’. 
SEC. 204. AMENDMENTS RELATING TO CREDIT UNION 
SERVICE TO UNDERSERVED AREAS. 
(a) IN GENERAL.—The Federal Credit Union Act (12 
U.S.C. 1751 et seq.) is amended— 
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101 
(1) in section 101 (12 U.S.C. 1752)— 
(A) in paragraph (8), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (9), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(10) the term ‘underserved area’— 
‘‘(A) means a local community, neighbor-
hood, or rural district that— 
‘‘(i) is an investment area, as defined 
in section 103 of the Community Develop-
ment Banking and Financial Institutions 
Act of 1994 (12 U.S.C. 4702), that meets 
such additional requirements that the 
Board may impose; and 
‘‘(ii) is underserved, based on data of 
the Board and the Federal banking agen-
cies (as defined in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813)), 
by other depository institutions (as defined 
in section 19(b)(1)(A) of the Federal Re-
serve Act (12 U.S.C. 461(b)(1)(A)); and 
‘‘(B) notwithstanding subparagraph (A), 
includes, with respect to any Federal credit 
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102 
union, any geographic area within which the 
credit union— 
‘‘(i) has received approval to provide 
service as an underserved area before the 
date of enactment of this paragraph from 
the Administration; and 
‘‘(ii) has established a service facility 
before that date of enactment.’’; 
(2) in section 106 (12 U.S.C. 1756)— 
(A) in the first sentence, by striking ‘‘Fed-
eral’’ and inserting ‘‘(a) Federal’’; and 
(B) by adding at the end the following: 
‘‘(b) The Board shall monitor adherence by a Federal 
credit union to a significant unmet needs plan submitted 
under section 109(h) by that Federal credit union that 
describes how the Federal credit union will serve the de-
posit and other financial needs of the community.’’; and 
(3) in section 109 (12 U.S.C. 1759)— 
(A) in subsection (c), by amending para-
graph (2) to read as follows: 
‘‘(2) EXCEPTION FOR UNDERSERVED AREAS.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
section (b), the Board may approve an applica-
tion by a Federal credit union to allow the 
membership of the credit union to include any 
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103 
person or organization whose principal resi-
dence or place of business is located within a 
local community, neighborhood, or rural district 
if— 
‘‘(i) the Board determines— 
‘‘(I) at any time after August 7, 
1998, that the local community, 
neighborhood, or rural district taken 
into account for purposes of this para-
graph is an underserved area; and 
‘‘(II) at the time of the approval, 
that the credit union is well capital-
ized or adequately capitalized (as de-
fined in section 216(c)(1)); and 
‘‘(ii) before the end of the 24-month 
period beginning on the date of the ap-
proval, the credit union has established 
and maintains an ongoing method to pro-
vide services in the local community, neigh-
borhood, or rural district. 
‘‘(B) TERMINATION OF APPROVAL.— 
‘‘(i) IN GENERAL.—Any failure of a 
Federal credit union to meet the require-
ment of clause (ii) of subparagraph (A) by 
the end of the 24-month period referred to 
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104 
in that clause shall constitute a termi-
nation, as a matter of law, of any approval 
of an application under this paragraph by 
the Board with respect to the membership 
of the credit union. 
‘‘(ii) SIGNIFICANT
UNMET
NEEDS 
PLAN.—The Board may terminate the ap-
proval of an application under this para-
graph with respect to the membership of a 
Federal credit union upon a finding that 
the credit union is not meeting the terms 
of the significant unmet needs plan of the 
credit union submitted under subsection 
(h)(1). 
‘‘(C) CREDIT UNION REPORTING REQUIRE-
MENT.—Any Federal credit union that has an 
application approved under this paragraph 
shall, as part of the ordinary course of the ex-
amination cycle and supervision process, submit 
a report to the Administration that includes— 
‘‘(i) the number of members of the 
credit union who are members by reason of 
the application; 
‘‘(ii) the number of offices or facilities 
maintained by the credit union in the local 
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105 
community, neighborhood, or rural district 
taken into account by the Board in approv-
ing the application; and 
‘‘(iii) evidence, as specified by the 
Board by regulation, demonstrating com-
pliance by the credit union with the signifi-
cant unmet needs plan submitted by the 
credit union under subsection (h)(1), as 
specified by the Administration. 
‘‘(D) 
PUBLICATION
BY
ADMINISTRA-
TION.—The Administration shall publish an an-
nual report containing— 
‘‘(i) a list of all the applications ap-
proved under this paragraph before the 
date on which the report is published; 
‘‘(ii) the number and locations of the 
underserved areas taken into account in 
approving those applications; 
‘‘(iii) the total number of members of 
credit unions who are members by reason 
of the approval of those applications; and 
‘‘(iv) evidence demonstrating compli-
ance by credit unions with significant 
unmet needs plans submitted by the credit 
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106 
unions under subsection (h)(1), as speci-
fied by the Administration.’’; 
(B) in subsection (e)(2), by inserting ‘‘sub-
section (c)(2) and’’ after ‘‘provided in’’; and 
(C) by adding at the end the following: 
‘‘(h) ADDITIONAL REQUIREMENTS FOR COMMUNITY 
CREDIT UNIONS.— 
‘‘(1) IN GENERAL.—A Federal credit union de-
siring a field of membership as a credit union de-
scribed in subsection (b)(3) shall submit to the 
Board a business plan, which shall include, among 
other issues, a marketing plan that identifies— 
‘‘(A) the unique needs of the various demo-
graphic groups in the proposed community; and 
‘‘(B) how the credit union will market to 
each group, particularly underserved groups, to 
address those needs. 
‘‘(2) PUBLIC COMMENT AND HEARING.—With 
respect to a Federal credit union desiring a field of 
membership as a credit union described in sub-
section (b)(3) for an area with multiple political ju-
risdictions with a population of not less than 
2,500,000, the Administration shall— 
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107 
‘‘(A) publish a notice in the Federal Reg-
ister seeking comment from interested parties 
about the proposed community; and 
‘‘(B) conduct a public hearing regarding 
the application of the Federal credit union.’’. 
(b) REGULATIONS.—Not later than 1 year after the 
date of enactment of this Act, the National Credit Union 
Administration Board shall issue final regulations to im-
plement the amendments made by subsection (a). 
SEC. 205. RAISING PUBLIC WELFARE CAPS. 
(a) NATIONAL BANKS.—The paragraph designated 
as the ‘‘Eleventh.’’ of section 5136 of the Revised Statutes 
of the United States (12 U.S.C. 24) is amended to read 
as follows: ‘‘Eleventh. To make investments directly or in-
directly, each of which promotes the public welfare by ben-
efitting primarily low- and moderate-income communities 
or families (such as by providing housing, services, or 
jobs). An association shall not make any such investment 
if the investment would expose the association to unlimited 
liability. The Comptroller of the Currency shall limit an 
association’s investments in any 1 project and an associa-
tion’s aggregate investments under this paragraph. Aggre-
gate investments for associations that do not meet the cri-
teria of being well capitalized, as defined in section 24.2(e) 
of title 12, Code of Federal Regulations, or any successor 
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108 
regulation, under this paragraph shall not exceed an 
amount equal to the sum of 5 percent of the association’s 
capital stock actually paid in and unimpaired and 5 per-
cent of the association’s unimpaired surplus fund, unless 
the Comptroller determines by order that the higher 
amount will pose no significant risk to the affected deposit 
insurance fund, and the association is adequately capital-
ized. In no case shall aggregate investments of an associa-
tion that do not meet the criteria for being well capitalized 
under this paragraph exceed an amount equal to the sum 
of 15 percent of the association’s capital stock actually 
paid in and unimpaired and 15 percent of the association’s 
unimpaired surplus fund. Aggregate investments of well 
capitalized associations, as defined in section 24.2(e) of 
title 12, Code of Federal Regulations, or any successor 
regulation, under this paragraph shall not exceed an 
amount equal to the sum of 15 percent of the association’s 
capital stock actually paid in and unimpaired and 15 per-
cent of the association’s unimpaired surplus fund, unless 
the Comptroller determines by order that the higher 
amount will pose no significant risk to the affected deposit 
insurance fund. With respect to any association that meets 
the criteria for being well capitalized, as defined in section 
24.2(e) of title 12, Code of Federal Regulations, or any 
successor regulation, aggregate investments under this 
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109 
paragraph shall not exceed an amount equal to the sum 
of 25 percent of the association’s capital stock actually 
paid in and unimpaired and 25 percent of the association’s 
unimpaired surplus fund. The foregoing standards and 
limitations apply to investments under this paragraph 
made by a national bank directly and by its subsidiaries.’’. 
(b) CONFORMING AMENDMENTS FOR STATE MEM-
BER BANKS.—The 23rd undesignated paragraph of sec-
tion 9 of the Federal Reserve Act (12 U.S.C. 338a) is 
amended to read as follows: 
‘‘A State member bank may make investments di-
rectly or indirectly, each of which promotes the pub-
lic welfare by benefitting primarily low- and mod-
erate-income communities or families (such as by 
providing housing, services, or jobs), to the extent 
permissible under State law. A State member bank 
shall not make any such investment if the invest-
ment would expose the State member bank to unlim-
ited liability. Aggregate investments for State mem-
ber banks that do not meet the criteria of being well 
capitalized, as defined in section 208.43(b) of title 
12, Code of Federal Regulations, or any successor 
regulation, under this paragraph shall not exceed an 
amount equal to the sum of 5 percent of the associa-
tion’s capital stock actually paid in and unimpaired 
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110 
and 5 percent of the association’s unimpaired sur-
plus fund, unless the Board determines by order 
that the higher amount will pose no significant risk 
to the affected deposit insurance fund, and the asso-
ciation is adequately capitalized. In no case shall ag-
gregate investments of a State member bank that 
does not meet the criteria for being well capitalized 
under this paragraph exceed an amount equal to the 
sum of 15 percent of the association’s capital stock 
actually paid in and unimpaired and 15 percent of 
the association’s unimpaired surplus fund. Aggre-
gate investments of well capitalized State member 
banks, as defined in section 208.43(b) of title 12, 
Code of Federal Regulations, or any successor regu-
lation, with an examination rating under section 804 
of the Community Reinvestment Act of 1977 (12 
U.S.C. 2903) of ‘outstanding’ or ‘satisfactory’, 
under this paragraph shall not exceed an amount 
equal to the sum of 15 percent of the State member 
bank’s capital stock actually paid in and unimpaired 
and 15 percent of the state member Bank’s 
unimpaired surplus fund, unless the Board deter-
mines by order that the higher amount will pose no 
significant risk to the affected deposit insurance 
fund. With respect to any State member bank that 
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111 
meets meet the criteria for being well capitalized as 
defined in section 208.43(b) of title 12, Code of 
Federal Regulations, or any successor regulation, 
with an examination rating under section 804 of the 
Community Reinvestment Act of 1977 (12 U.S.C. 
2903) of ‘outstanding’ or ‘satisfactory’, aggregate 
investments under this paragraph shall not exceed 
an amount equal to the sum of 25 percent of the 
State member bank’s capital stock actually paid in 
and unimpaired and 25 percent of the State member 
bank’s unimpaired surplus fund. The foregoing 
standards and limitations apply to investments 
under this paragraph made by a State member bank 
directly and by its subsidiaries.’’. 
SEC. 206. TEMPORARY ELIGIBILITY OF CERTAIN DIRECT 
DESCENDANTS OF CERTAIN VETERANS FOR 
HOUSING LOANS GUARANTEED BY THE SEC-
RETARY OF VETERANS AFFAIRS. 
(a) IN GENERAL.—During the period described in 
subsection (b)— 
(1) section 3701(b) of title 38, United States 
Code, shall be applied and administered by adding at 
the end the following new paragraph: 
‘‘(8)(A) The term ‘veteran’ also includes, for 
purposes of home loans, any direct descendant of a 
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112 
veteran described in subparagraph (B) if the de-
scendant— 
‘‘(i) is living on the date of the enactment 
of the American Housing and Economic Mobil-
ity Act of 2025; 
‘‘(ii) is a first-time homebuyer; and 
‘‘(iii) is a first-generation homebuyer. 
‘‘(B) A veteran described in this clause is a vet-
eran who— 
‘‘(i) served on active duty at any time dur-
ing the period between June 22, 1944, and 
April 11, 1968; 
‘‘(ii) is deceased; and 
‘‘(iii) did not receive a housing loan benefit 
under this chapter during his or her lifetime. 
‘‘(C) In this paragraph: 
‘‘(i) The term ‘direct descendant’ includes 
a legally adopted descendant. 
‘‘(ii) The terms ‘first-generation home-
buyer’ and ‘first-time homebuyer’ have the 
meanings given those terms in section 201(a) of 
the American Housing and Economic Mobility 
Act of 2025.’’; and 
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113 
(2) section 3702(a)(2) of such title shall be ap-
plied and administered by adding at the end the fol-
lowing new subparagraph: 
‘‘(H) Each direct descendant described in sec-
tion 3701(b)(8) of this title.’’. 
(b) PERIOD DESCRIBED.—The period described in 
this subsection is the period beginning one year after the 
date of the enactment of this Act and ending ten years 
after the date on which the Secretary of Veterans Affairs 
prescribes the regulations required by subsection (c). 
(c) REGULATIONS.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Veterans Affairs shall prescribe regulations 
to carry out this section. 
(2) ELEMENTS.—The regulations required by 
paragraph (1) shall provide rules and procedures for 
determining— 
(A) the eligibility of a direct descendant 
for housing loan benefits under this section 
when the records of the Veterans Benefits Ad-
ministration are incomplete or otherwise inad-
equate to verify eligibility; and 
(B) appropriate implementation of this sec-
tion if more than one direct descendant of a 
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114 
veteran seeks housing loan benefits under this 
section. 
TITLE III—REMOVING BARRIERS 
THAT ISOLATE COMMUNITIES 
SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 
ACT. 
(a) PURPOSES.—The purposes of the amendments 
made by this section are— 
(1) to expand, as well as clarify, confirm, and 
create greater consistency in, the protections against 
discrimination on the basis of all covered character-
istics; and 
(2) to provide guidance and notice to individ-
uals, organizations, corporations, and agencies re-
garding their obligations under Federal law. 
(b) AMENDMENTS TO THE FAIR HOUSING ACT.— 
The Fair Housing Act (42 U.S.C. 3601 et seq.) is amend-
ed— 
(1) in section 802 (42 U.S.C. 3602), by adding 
at the end the following: 
‘‘(p) ‘Gender identity’ means the gender-related iden-
tity, appearance, or mannerisms or other gender-related 
characteristics of an individual, regardless of the individ-
ual’s designated sex at birth. 
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‘‘(q) ‘Marital status’ has the meaning given the term 
in section 202.2 of title 12, Code of Federal Regulations, 
or any successor regulation. 
‘‘(r) ‘Sexual orientation’ means homosexuality, het-
erosexuality, or bisexuality. 
‘‘(s) ‘Source of income’ includes income for which 
there is a reasonable expectation that the income will con-
tinue from— 
‘‘(1) a profession, occupation, or job; 
‘‘(2) any government or private assistance, 
grant, loan, or rental assistance program, including 
vouchers issued under the United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.); 
‘‘(3) a gift, an inheritance, a pension, an annu-
ity, alimony, child support, or other consideration or 
benefit; or 
‘‘(4) the sale or pledge of property or an inter-
est in property. 
‘‘(t) ‘Veteran status’ means— 
‘‘(1) a member of the uniformed services, as de-
fined in section 101 of title 10, United States Code; 
or 
‘‘(2) a veteran, as defined in section 101 of title 
38, United States Code.’’; 
(2) in section 804 (42 U.S.C. 3604)— 
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116 
(A) by inserting ‘‘actual or perceived’’ be-
fore ‘‘race, color’’ each place that term appears; 
(B) by striking ‘‘sex,’’ each place that term 
appears and inserting ‘‘sex (including sexual 
orientation and gender identity), marital status, 
source of income, veteran status,’’; and 
(C) in subsection (c)— 
(i) by inserting ‘‘(1)’’ before ‘‘To 
make’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(2) Nothing in this title shall be construed to— 
‘‘(A) prohibit a lender from implementing a 
loan program for veterans or based upon veteran 
status; or 
‘‘(B) prohibit an entity from providing housing 
assistance under— 
‘‘(i) section 8(o)(19) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(19)); 
‘‘(ii) the Homeless Providers Grant and 
Per Diem program of the Department of Vet-
erans Affairs; or 
‘‘(iii) any other Federal housing assistance 
program for veterans or based on veteran sta-
tus.’’; 
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(3) in section 805 (42 U.S.C. 3605)— 
(A) by inserting ‘‘actual or perceived’’ be-
fore ‘‘race, color’’ each place that term appears; 
and 
(B) by striking ‘‘sex,’’ each place that term 
appears and inserting ‘‘sex (including sexual 
orientation and gender identity), marital status, 
source of income, veteran status,’’; 
(4) in section 806 (42 U.S.C. 3606)— 
(A) by inserting ‘‘actual or perceived’’ be-
fore ‘‘race, color’’; and 
(B) by striking ‘‘sex,’’ each place that term 
appears and inserting ‘‘sex (including sexual 
orientation and gender identity), marital status, 
source of income, veteran status,’’; and 
(5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), 
by striking ‘‘sex,’’ and inserting ‘‘sex (including sex-
ual orientation and gender identity), marital status, 
source of income, veteran status,’’. 
(c) PREVENTION OF INTIMIDATION.—Section 901 of 
the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend-
ed— 
(1) by inserting ‘‘actual or perceived’’ before 
‘‘race, color’’ each place that term appears; and 
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(2) by striking ‘‘sex,’’ each place that term ap-
pears and inserting ‘‘sex (including sexual orienta-
tion (as such term is defined in section 802 of this 
Act) and gender identity (as defined in section 802 
of this Act)), marital status (as defined in section 
802), source of income (as defined in section 802), 
veteran status (as defined in section 802),’’. 
(d) RULE
OF
CONSTRUCTION.—Nothing in the 
amendments made by this section shall be construed to 
mean that a particular class of individuals was not pro-
tected against discrimination under Federal law as in ef-
fect on the day before the date of enactment of this Act. 
SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 
PROGRAMS. 
(a) INDIAN HOUSING ASSISTANCE.—Section 502 of 
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4181) is amended by 
adding at the end the following: 
‘‘(c) APPLICABILITY.—Subsections (a) and (b) shall 
not apply with respect to tenant-based assistance provided 
under section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)).’’. 
(b) SUPPLEMENTAL ADMINISTRATIVE FEE.—Section 
8(q)(2)(B) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ-
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ing the cost of assisting families with children or families 
with a member with a disability that move to lower pov-
erty, higher opportunity neighborhoods (as determined by 
the Secretary based on objective, evidence-based criteria)’’ 
after ‘‘programs’’. 
(c) REGIONAL PLANNING TO INCREASE ACCESS TO 
HIGHER OPPORTUNITY AREAS.—Section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 
is amended by adding at the end the following: 
‘‘(23) INCREASING ACCESS TO HIGHER OPPOR-
TUNITY AREAS.— 
‘‘(A) LOCATION ANALYSIS.— 
‘‘(i) IN GENERAL.—A public housing 
agency that administers the program 
under this subsection in a metropolitan 
area shall— 
‘‘(I) analyze the locations where 
the participants in the program of the 
public housing agency live; and 
‘‘(II) based on the analysis de-
scribed in subclause (I), establish poli-
cies and practices to reduce disparities 
and barriers to access to locations 
throughout the metropolitan area that 
evidence indicates are more likely to 
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improve outcomes for children or 
adults. 
‘‘(ii) CONSIDERATIONS.—The location 
analysis required under this subparagraph 
shall— 
‘‘(I) consider separately the loca-
tions of families with children, house-
holds that include a person with dis-
abilities, and other groups protected 
under the Fair Housing Act (42 
U.S.C. 3601 et seq.); and 
‘‘(II) include an analysis of the 
locations in relation to dwelling units 
with rents that are potentially afford-
able to voucher holders and the likely 
impact of key neighborhood attributes 
on their well-being and long-term suc-
cess, based on Federal and available 
local data. 
‘‘(iii) MAPPING
TOOLS.—The Sec-
retary shall— 
‘‘(I) provide mapping tools and 
other information necessary for a pub-
lic housing agency to perform the lo-
cation analysis under this subpara-
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121 
graph using the demographic data on 
participating families submitted to the 
Secretary under part 908 of title 24, 
Code of Federal Regulations, or any 
successor regulation; 
‘‘(II) publish a notice in the Fed-
eral Register, subject to public com-
ment, that specifies the data sources 
and definitions that will be incor-
porated in each mapping tool required 
under subclause (I); and 
‘‘(III) update the notice required 
under subclause (II) as needed based 
on changes in the availability of rel-
evant data or evidence of neighbor-
hood attributes likely to impact the 
well-being and long-term success of 
participants in the program under this 
subsection. 
‘‘(iv) 
FREQUENCY
AND
AVAIL-
ABILITY.—The location analysis required 
under this subparagraph shall— 
‘‘(I) be performed by each public 
housing agency described in clause (i) 
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122 
not less frequently than once every 5 
years; 
‘‘(II) be performed by all public 
housing agencies in a metropolitan 
area in the same year, as determined 
by the Secretary; and 
‘‘(III) be made available to the 
public in a manner that protects the 
privacy of program participants. 
‘‘(B) REGIONAL
POLICIES
TO
INCREASE 
ACCESS TO HIGHER OPPORTUNITY NEIGHBOR-
HOODS.—Each public housing agency described 
in subparagraph (A)(i) shall— 
‘‘(i) consult with other such public 
housing agencies in the same metropolitan 
area, or smaller regional area approved by 
the Secretary, about the possible barriers 
and other reasons for the disparities iden-
tified in the location analysis required 
under subparagraph (A); 
‘‘(ii) identify policies or practices that 
those public housing agencies could adopt 
individually or in collaboration, or other 
strategies that recipients of grants or other 
funding from the Secretary could adopt, to 
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123 
reduce the barriers and disparities and in-
crease the share of families with children 
and other demographic groups using 
vouchers in higher-opportunity neighbor-
hoods in the metropolitan area or region; 
and 
‘‘(iii) include in the administrative 
plan required under section 982.54 of title 
24, Code of Federal Regulations, or any 
successor regulation, the policies that the 
public housing agency has adopted under 
this paragraph. 
‘‘(C) ASSESSMENT.—The Secretary shall 
include public housing agency performance in 
achieving the goal described in subparagraph 
(A)(i)(II) in the periodic assessment of agency 
performance in managing the program under 
this subsection required under part 985 of title 
24, Code of Federal Regulations, or any suc-
cessor regulation.’’. 
(d) REQUIRED REGULATORY CHANGES TO PUBLIC 
HOUSING AGENCY CONSORTIA.— 
(1) DEFINITIONS.—In this subsection: 
(A) MOVING
TO
WORK
DEMONSTRATION 
PROGRAM.—The term ‘‘Moving to Work dem-
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124 
onstration program’’ means the program estab-
lished under section 204 of the Departments of 
Veterans Affairs and Housing and Urban De-
velopment, and Independent Agencies Appro-
priations Act, 1996 (Public Law 104–134; 110 
Stat. 1321–281). 
(B) PUBLIC HOUSING AGENCY.—The term 
‘‘public housing agency’’ has the meaning given 
the term in section 3(b)(6) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)(6)). 
(2) REQUIREMENT.—Not later than 1 year 
after the date of enactment of this Act, the Sec-
retary of Housing and Urban Development shall es-
tablish policies and procedures that— 
(A) enable public housing agencies that 
elect to operate in consortia under section 13(a) 
of the United States Housing Act of 1937 (42 
U.S.C. 1437k(a)), excluding public housing 
agencies participating in the Moving to Work 
demonstration program— 
(i) to consolidate their funding con-
tracts for assistance provided under section 
8(o) of such Act (42 U.S.C. 1437f(o)) into 
a single contract; 
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125 
(ii) to consolidate their funding con-
tracts for assistance provided under sub-
sections (d) and (e) of section 9 of such 
Act (42 U.S.C. 1437g); or 
(iii) to exercise the consolidation op-
tions under each of clauses (i) and (ii); and 
(B) enable public housing agencies to form 
partial consortia under such section 13(a) (42 
U.S.C. 1437k(a)) that consolidate the adminis-
tration of certain aspects of their housing pro-
grams to increase access to higher-opportunity 
areas or for other purposes, subject to such re-
quirements as the Secretary may establish. 
(3) MOVING TO WORK AGENCIES.—Any flexi-
bility or waiver applicable to the Moving to Work 
demonstration program shall not apply to any activi-
ties or funds administered through a partial consor-
tium formed under paragraph (2)(B) by 1 or more 
public housing agencies participating in the Moving 
to Work demonstration program. 
TITLE IV—ESTATE TAX REFORM 
SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 
1986. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms 
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of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code 
of 1986. 
SEC. 402. RATE ADJUSTMENT. 
(a) INCREASE IN ESTATE TAX RATES.—The table 
contained in section 2001(c) is amended to read as follows: 
If the amount with respect to 
which the tentative tax to 
be computed is: 
The tentative tax is: 
Not over $13,000,000 ...................
55 percent of such amount. 
Over $13,000,000 but not over 
$93,000,000.
$7,150,000, plus 60 percent of the 
excess 
of 
such 
amount 
over 
$13,000,000. 
Over $93,000,000 ..........................
$55,150,000, plus 65 percent of the 
excess 
of 
such 
amount 
over 
$93,000,000. 
(b) REDUCTION OF BASIC EXCLUSION AMOUNT.— 
Paragraph (3) of section 2010(c) is amended to read as 
follows: 
‘‘(3) BASIC
EXCLUSION
AMOUNT.—For pur-
poses of this subsection, the basic exclusion amount 
is $3,500,000.’’. 
(c) SURTAX ON BILLION DOLLAR ESTATES.—Section 
2001 is amended— 
(1) in subsection (b), by striking ‘‘The tax’’ and 
inserting ‘‘Subject to subsection (h), the tax’’, and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) SURTAX ON BILLION DOLLAR ESTATES.— 
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‘‘(1) IN GENERAL.—In the case of a taxable es-
tate for which the applicable amount is in excess of 
$1,000,000,000, the tax determined under sub-
section (b) shall be increased by an amount equal to 
10 percent of such applicable amount. 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
this subsection, the applicable amount shall be equal 
to the sum of the amounts under subparagraphs (A) 
and (B) of paragraph (1) of subsection (b) for the 
taxable estate.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
generation-skipping transfers and gifts made, after the 
date of the enactment of this Act. 
SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 
GRANTOR RETAINED ANNUITY TRUSTS. 
(a) IN GENERAL.—Subsection (b) of section 2702 is 
amended— 
(1) by redesignating paragraphs (1), (2), and 
(3) as subparagraphs (A), (B), and (C), respectively, 
and by moving such subparagraphs (as so redesig-
nated) 2 ems to the right, 
(2) by striking ‘‘For purposes of’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—For purposes of’’, 
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(3) by striking ‘‘paragraph (1) or (2)’’ in para-
graph (1)(C) (as so redesignated) and inserting 
‘‘subparagraph (A) or (B)’’, and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) ADDITIONAL
REQUIREMENTS
WITH
RE-
SPECT
TO
GRANTOR
RETAINED
ANNUITIES.—For 
purposes of subsection (a), in the case of an interest 
described in paragraph (1)(A) (determined without 
regard to this paragraph) which is retained by the 
transferor, such interest shall be treated as de-
scribed in such paragraph only if— 
‘‘(A) the right to receive the fixed amounts 
referred to in such paragraph is for a term of 
not less than 10 years, 
‘‘(B) such fixed amounts, when determined 
on an annual basis, do not decrease relative to 
any prior year during the first 10 years of the 
term referred to in subparagraph (A), and 
‘‘(C) the remainder interest has a value 
equal to or greater than 10 percent of the value 
of the assets transferred to the trust, deter-
mined as of the time of the transfer.’’. 
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129 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers made after the date 
of the enactment of this Act. 
SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 
GRANTOR TRUSTS. 
(a) IN GENERAL.—Subtitle B is amended by adding 
at the end the following new chapter: 
‘‘CHAPTER 16—SPECIAL RULES FOR 
GRANTOR TRUSTS 
‘‘Sec. 2901. Application of transfer taxes. 
‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES. 
‘‘(a) IN GENERAL.—In the case of any portion of a 
trust to which this section applies— 
‘‘(1) the value of the gross estate of the de-
ceased deemed owner of such portion shall include 
all assets attributable to that portion at the time of 
the death of such owner, 
‘‘(2) any distribution from such portion to one 
or more beneficiaries during the life of the deemed 
owner of such portion shall be treated as a transfer 
by gift for purposes of chapter 12, and 
‘‘(3) if at any time during the life of the 
deemed owner of such portion, such owner ceases to 
be treated as the owner of such portion under sub-
part E of part 1 of subchapter J of chapter 1, all 
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130 
assets attributable to such portion at such time shall 
be treated for purposes of chapter 12 as a transfer 
by gift made by the deemed owner. 
‘‘(b) PORTION OF TRUST TO WHICH SECTION AP-
PLIES.—This section shall apply to— 
‘‘(1) the portion of a trust with respect to 
which the grantor is the deemed owner, and 
‘‘(2) the portion of the trust to which a person 
who is not the grantor is a deemed owner by reason 
of the rules of subpart E of part 1 of subchapter J 
of chapter 1, and such deemed owner engages in a 
sale, exchange, or comparable transaction with the 
trust that is disregarded for purposes of subtitle A. 
For purposes of paragraph (2), the portion of the trust 
described with respect to a transaction is the portion of 
the trust attributable to the property received by the trust 
in such transaction, including all retained income there-
from, appreciation thereon, and reinvestments thereof, net 
of the amount of consideration received by the deemed 
owner in such transaction. 
‘‘(c) EXCEPTIONS.—This section shall not apply to— 
‘‘(1) any trust that is includible in the gross es-
tate of the deemed owner (without regard to sub-
section (a)(1)), and 
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131 
‘‘(2) any other type of trust that the Secretary 
determines by regulations or other guidance does not 
have as a significant purpose the avoidance of trans-
fer taxes. 
‘‘(d) DEEMED OWNER DEFINED.—For purposes of 
this section, the term ‘deemed owner’ means any person 
who is treated as the owner of a portion of a trust under 
subpart E of part 1 of subchapter J of chapter 1. 
‘‘(e) REDUCTION FOR TAXABLE GIFTS TO TRUST 
MADE BY OWNER.—The amount to which subsection (a) 
applies shall be reduced by the value of any transfer by 
gift by the deemed owner to the trust previously taken 
into account by the deemed owner under chapter 12. 
‘‘(f) LIABILITY FOR PAYMENT OF TAX.—Any tax im-
posed pursuant to subsection (a) shall be a liability of the 
trust.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for subtitle B is amended by adding at the end the fol-
lowing new item: 
‘‘CHAPTER 16. SPECIAL RULES FOR GRANTOR TRUSTS’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply— 
(1) to trusts created on or after the date of the 
enactment of this Act, 
(2) to any portion of a trust established before 
the date of the enactment of this Act which is attrib-
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132 
utable to a contribution made on or after such date, 
and 
(3) to any portion of a trust established before 
the date of the enactment of this Act to which sec-
tion 2901(a) of the Internal Revenue Code of 1986 
(as added by subsection (a)) applies by reason of a 
transaction described in section 2901(b)(2) of such 
Code on or after such date. 
SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS-
FER TAX EXEMPTION FOR TRANSFERS TO 
CERTAIN PERSONS. 
(a) IN GENERAL.—Section 2642 is amended by add-
ing at the end the following new subsection: 
‘‘(h) ELIMINATION OF GST EXEMPTION FOR TRANS-
FERS TO CERTAIN PERSONS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) TRANSFER
TO
NON-EXEMPT
PER-
SON.—In the case of any direct skip or taxable 
distribution made to any person who is not an 
exempt person, the inclusion ratio shall be 1. 
‘‘(B) TAXABLE
TERMINATION.—In the 
case of any taxable termination which occurs at 
any time immediately after no exempt person is 
a beneficiary of the trust, the inclusion ratio 
shall be 1. 
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133 
‘‘(C) EXEMPT PERSON.— 
‘‘(i) IN
GENERAL.—For purposes of 
this subsection, the term ‘exempt person’ 
means— 
‘‘(I) a natural person— 
‘‘(aa) who is assigned to a 
generation which is 2 or fewer 
generations below the generation 
assignment of the transferor, or 
‘‘(bb) whose date of birth 
precedes the date on which the 
trust was created, or 
‘‘(II) a trust in which all inter-
ests are held by persons described in 
subclause (I). 
‘‘(ii) EXCEPTION.—For purposes of 
clause (i)(II), any interest which is used 
primarily to postpone or avoid the applica-
tion of this subsection shall be disregarded. 
‘‘(2) DATE OF CREATION.— 
‘‘(A) IN GENERAL.—For purposes of deter-
mining the date on which a trust was created 
under paragraph (1)(C)(i)(I)(bb), if the trust 
was created before January 1, 2026, such trust 
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134 
shall be deemed to have been created on Janu-
ary 1, 2026. 
‘‘(B) DATE OF CREATION OF POUR-OVER 
TRUSTS.— 
‘‘(i) IN GENERAL.—In the case of any 
generation-skipping transfer of property 
which involves the transfer of property 
from one trust to another trust, the date 
of the creation of the transferee trust shall 
be treated as being the earlier of— 
‘‘(I) the date of the creation of 
such transferee trust, or 
‘‘(II) the date of the creation of 
the transferor trust. 
‘‘(ii) MULTIPLE TRANSFERS.—In the 
case of multiple transfers to which clause 
(i) applies— 
‘‘(I) the date of the creation of 
the transferor trust shall be deter-
mined under such clause, and 
‘‘(II) subsequent to the deter-
mination described in subclause (I), 
the date of the creation of the trans-
feree trust shall be determined under 
such clause. 
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‘‘(3) GENERATION ASSIGNMENT.—For purposes 
of this subsection, the provisions of section 2653(a) 
shall not apply. 
‘‘(4) REGULATIONS.—The Secretary may pre-
scribe such regulations or other guidance as may be 
necessary or appropriate to carry out this sub-
section.’’. 
(b) REPEAL.—Section 1433(b)(2) of the Tax Reform 
Act of 1986 (Public Law 99–514) is repealed. 
(c) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendment made by 
subsection (a) shall take effect on the date of the en-
actment of this Act. 
(2) REPEAL.—The amendment made by sub-
section (b) shall apply to generation-skipping trans-
fers (within the meaning of section 2611 of the In-
ternal Revenue Code of 1986) made after the date 
of enactment of this Act. 
SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 
GIFTS. 
(a) IN GENERAL.—Paragraph (1) of section 2503(b) 
is amended to read as follows: 
‘‘(1) IN GENERAL.— 
‘‘(A) LIMIT PER DONEE.—In the case of 
gifts made to any person by the donor during 
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136 
the calendar year, the first $10,000 of such 
gifts to such person shall not, for purposes of 
subsection (a), be included in the total amount 
of gifts made during such year. 
‘‘(B) CUMULATIVE LIMIT PER DONOR.— 
‘‘(i) IN
GENERAL.—The aggregate 
amount excluded under subparagraph (A) 
with respect to all transfers described in 
clause (ii) made by the donor during the 
calendar year shall not exceed twice the 
dollar amount in effect under such sub-
paragraph for such calendar year. 
‘‘(ii) TRANSFERS SUBJECT TO LIMITA-
TION.—The transfers described in this 
clause are— 
‘‘(I) a transfer in trust, 
‘‘(II) a transfer of an interest in 
a passthrough entity, 
‘‘(III) a transfer of an interest 
subject to a prohibition on sale, and 
‘‘(IV) any other transfer of prop-
erty that, without regard to with-
drawal, put, or other such rights in 
the donee, cannot immediately be liq-
uidated by the donee.’’. 
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137 
(b) CONFORMING AMENDMENT.—Section 2503 is 
amended by striking subsection (c). 
(c) REGULATIONS.—The Secretary of the Treasury, 
or the Secretary of the Treasury’s delegate, may prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the amendments made by this 
section. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to any calendar year beginning 
after the date of the enactment of this Act. 
SEC. 407. CLARIFICATION REGARDING DISALLOWANCE OF 
STEP-UP IN BASIS FOR PROPERTY HELD IN 
CERTAIN GRANTOR TRUSTS. 
(a) IN GENERAL.—Section 1014 is amended— 
(1) by redesignating subsection (f) as sub-
section (g), and 
(2) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) PROPERTY
HELD
IN
CERTAIN
GRANTOR 
TRUSTS.—This section shall not apply to property— 
‘‘(1) held in a trust of which the transferor is 
considered the owner under subpart E of part I of 
subchapter J, and 
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138 
‘‘(2) if, after the transfer of such property to 
the trust, such property is not includible in the gross 
estate of the transferor for purposes of chapter 11.’’. 
(b) CONFORMING AMENDMENT.—Section 6662(k) is 
amended by striking ‘‘1014(f)’’ and inserting ‘‘1014(g)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers after the date of the 
enactment of this Act. 
(d) NO INFERENCE.—No inference may be drawn 
from the amendments made by this section with respect 
to the application of section 1014 of the Internal Revenue 
Code of 1986 to property described in subsection (f) of 
such section (as added by subsection (a)) which was trans-
ferred on or before the date of enactment of this Act. 
SEC. 408. LIMITATION ON DISCOUNTS; VALUATION RULES 
FOR CERTAIN TRANSFERS OF NONBUSINESS 
ASSETS. 
(a) IN GENERAL.—Chapter 14 of subtitle B is 
amended by adding at the end the following new section: 
‘‘SEC. 2705. LIMITATION ON DISCOUNTS; VALUATION RULES 
FOR CERTAIN TRANSFERS OF NONBUSINESS 
ASSETS. 
‘‘(a) LIMITATION ON DISCOUNT BY REASON OF FAM-
ILY CONTROL.— 
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139 
‘‘(1) IN GENERAL.—For purposes of this sub-
title, in the case of the transfer of any interest in 
an entity other than an interest which is actively 
traded (within the meaning of section 1092), if the 
transferor, the transferee, and members of the fam-
ily of the transferor and transferee have control of 
such entity immediately before such transfer, no dis-
count shall be allowed— 
‘‘(A) by reason of the fact that the trans-
feror or transferee does not have control of 
such entity, 
‘‘(B) by reason of the lack of marketability 
of the interest, or 
‘‘(C) for any other reason. 
‘‘(2) DEFINITIONS.—In this subsection, the 
terms ‘control’ and ‘member of the family’ have the 
same meanings given such terms in section 2704(c). 
‘‘(3) ATTRIBUTION.—For purposes of this sec-
tion, the rule of section 2701(e)(3) shall apply for 
purposes of determining the interests held by any in-
dividual. 
‘‘(b) VALUATION RULES FOR CERTAIN TRANSFERS 
OF NONBUSINESS ASSETS.— 
‘‘(1) IN GENERAL.—For purposes of this sub-
title, in the case of the transfer of any interest in 
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140 
an entity other than an interest which is actively 
traded (within the meaning of section 1092)— 
‘‘(A) the value of any nonbusiness assets 
held by the entity with respect to such interest 
shall be determined as if the transferor had 
transferred such assets directly to the trans-
feree (and no valuation discount shall be al-
lowed with respect to such nonbusiness assets), 
and 
‘‘(B) such nonbusiness assets shall not be 
taken into account in determining the value of 
the interest in the entity. 
‘‘(2) NONBUSINESS ASSETS.—For purposes of 
this subsection— 
‘‘(A) IN
GENERAL.—The term ‘nonbusi-
ness asset’ means any asset other than an asset 
which is used in the active conduct of a trade 
or business. 
‘‘(B) PASSIVE ASSETS TREATED AS NON-
BUSINESS ASSETS.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), a passive asset shall be 
treated as a nonbusiness asset unless— 
‘‘(I) the asset is property de-
scribed in paragraph (1) or (4) of sec-
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141 
tion 1221(a) or is a hedge with re-
spect to such property, or 
‘‘(II) the asset is real property 
used in the active conduct of 1 or 
more real property trades or busi-
nesses (within the meaning of section 
469(c)(7)(C)) in which the transferor 
materially participates and with re-
spect to which the transferor meets 
the 
requirements 
of 
section 
469(c)(7)(B)(ii). 
‘‘(ii) MATERIAL PARTICIPATION.—For 
purposes of clause (i)(II), material partici-
pation shall be determined under the rules 
of section 469(h), except that section 
469(h)(3) shall be applied without regard 
to the limitation to farming activity. 
‘‘(C) WORKING
CAPITAL
TREATED
AS 
USED IN TRADE OR BUSINESS.—Any asset (in-
cluding a passive asset) which is held as a part 
of the reasonably required working capital 
needs of a trade or business shall be treated as 
used in the active conduct of a trade or busi-
ness. 
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142 
‘‘(3) PASSIVE
ASSET.—For purposes of this 
subsection, the term ‘passive asset’ means any— 
‘‘(A) cash or cash equivalents, 
‘‘(B) stock in a corporation or any other 
equity, profits, or capital interest in any entity, 
‘‘(C) evidence of indebtedness, option, for-
ward or futures contract, notional principal con-
tract, or derivative, 
‘‘(D) asset described in clause (iii), (iv), or 
(v) of section 351(e)(1)(B), 
‘‘(E) annuity, 
‘‘(F) real property used in 1 or more real 
property trades or businesses (as defined in sec-
tion 469(c)(7)(C)), 
‘‘(G) asset (other than a patent, trade-
mark, or copyright) which produces royalty in-
come, 
‘‘(H) commodity, 
‘‘(I) collectible (within the meaning of sec-
tion 408(m)), or 
‘‘(J) any other asset specified in regula-
tions prescribed by the Secretary. 
‘‘(4) LOOK-THRU RULE.— 
‘‘(A) IN GENERAL.—If a nonbusiness asset 
of an entity described in paragraph (1) consists 
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143 
of a 10-percent interest in any other entity, this 
subsection shall be applied by disregarding the 
10-percent interest and by treating the entity 
as holding directly its ratable share of the as-
sets of the other entity. 
‘‘(B) 10-PERCENT
INTEREST.—The term 
‘10-percent interest’ means— 
‘‘(i) in the case of an interest in a cor-
poration, direct ownership of at least 10 
percent (by vote or value) of the stock in 
such corporation, 
‘‘(ii) in the case of an interest in a 
partnership, direct ownership of at least 10 
percent of the capital or profits interest in 
the partnership, and 
‘‘(iii) in any other case, direct owner-
ship of at least 10 percent of the beneficial 
interests in the entity.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 2031(b) of the Internal Revenue 
Code of 1986 is amended by inserting ‘‘(after appli-
cation of section 2705(b))’’ after ‘‘shall be deter-
mined’’. 
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144 
(2) The table of sections of chapter 14 of sub-
title B of such Code is amended by adding at the 
end the following: 
‘‘Sec. 2705. Limitation on discounts; valuation rules for certain transfers of 
nonbusiness assets.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers after the date of the 
enactment of this Act. 
SEC. 409. SURCHARGE ON HIGH INCOME ESTATES AND 
TRUSTS. 
(a) IN GENERAL.—Subchapter A of chapter 1 is 
amended by adding at the end the following new part: 
‘‘PART VIII—SURCHARGE ON HIGH INCOME 
ESTATES AND TRUSTS 
‘‘Sec. 59B. Surcharge on high income estates and trusts. 
‘‘SEC. 59B. SURCHARGE ON HIGH INCOME ESTATES AND 
TRUSTS. 
‘‘(a) GENERAL RULE.—In the case of an estate or 
trust, there is hereby imposed (in addition to any other 
tax imposed by this subtitle) a tax equal to the sum of— 
‘‘(1) 5 percent of so much of the modified ad-
justed gross income of the taxpayer as exceeds 
$200,000, plus 
‘‘(2) 3 percent of so much of the modified ad-
justed gross income of the taxpayer as exceeds 
$500,000. 
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145 
‘‘(b) MODIFIED ADJUSTED GROSS INCOME.—For 
purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘modified ad-
justed gross income’ means adjusted gross income 
reduced by any deduction (not taken into account in 
determining adjusted gross income) allowed for in-
vestment interest (as defined in section 163(d)) or 
business interest (as defined in section 163(j)). 
‘‘(2) ADJUSTED
GROSS
INCOME.—Adjusted 
gross income shall be determined as provided in sec-
tion 67(e) and reduced by the amount allowed as a 
deduction under section 642(c). 
‘‘(c) SPECIAL RULES.— 
‘‘(1) CHARITABLE
TRUSTS.—Subsection (a) 
shall not apply to a trust all the unexpired interests 
in which are devoted to one or more of the purposes 
described in section 170(c)(2)(B). 
‘‘(2) NOT TREATED AS TAX IMPOSED BY THIS 
CHAPTER
FOR
CERTAIN
PURPOSES.—The tax im-
posed under this section shall not be treated as tax 
imposed by this chapter for purposes of determining 
the amount of any credit under this chapter (other 
than sections 27 and 901) or for purposes of section 
55. 
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146 
‘‘(3) ELECTING SMALL BUSINESS TRUSTS.—For 
purposes of the determination of adjusted gross in-
come, section 641(c)(1)(A) shall not apply and all 
portions of any electing small business trust shall be 
treated as a single trust. 
‘‘(d) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section, includ-
ing regulations or other guidance to prevent the avoidance 
of the purposes of this section.’’. 
(b) COORDINATION WITH CERTAIN PROVISIONS.— 
(1) INTEREST ON CERTAIN DEFERRED TAX LI-
ABILITY.—Section 453A(c) is amended by redesig-
nating paragraph (6) as paragraph (7) and by in-
serting after paragraph (5) the following new para-
graph: 
‘‘(6) SURCHARGE ON HIGH INCOME ESTATES 
AND
TRUSTS
TAKEN
INTO
ACCOUNT
IN
DETER-
MINING MAXIMUM RATE OF TAX.—For purposes of 
paragraph (3)(B), in the case of an estate or trust, 
the maximum rate of tax in effect under section 1 
shall be treated as being equal to the sum of such 
rate and the rates in effect under paragraphs (1) 
and (2) of section 59B(a).’’. 
(2) LIMITATION ON FOREIGN TAX CREDIT.— 
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147 
(A) Section 904(b)(3)(E)(i)(I) is amended 
by inserting ‘‘increased, in the case of an estate 
or trust, by the sum of the rates set forth in 
paragraphs (1) and (2) of section 1A(a)’’ after 
‘‘(whichever applies)’’. 
(B) Section 904(d)(2)(F) is amended by 
adding at the end the following: ‘‘For purposes 
of the first sentence of this subparagraph, in 
the case of an estate or trust, the highest rate 
of tax specified in section 1 shall be treated as 
being equal to the sum of such rate and the 
rates in effect under paragraphs (1) and (2) of 
section 59B(a).’’. 
(3) ELECTION BY INDIVIDUALS TO BE SUBJECT 
TO TAX AT CORPORATE RATES.—Section 962(a)(1) 
is amended by striking ‘‘and 55’’ and inserting 55‘‘, 
and 59B’’. 
(4) INTEREST ON CERTAIN TAX DEFERRAL.— 
Section 1291(c)(2) is amended by adding at the end 
the following: ‘‘For purposes of the preceding sen-
tence, in the case of an estate or trust, the highest 
rate of tax in effect under section 1 shall be treated 
as being equal to the sum of such rate and the rates 
in effect under paragraphs (1) and (2) of section 
59B(a).’’. 
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148 
(5) WITHHOLDING OF TAX ON FOREIGN PART-
NERS’ SHARE
OF
EFFECTIVELY
CONNECTED
IN-
COME.—Section 1446(b)(2) is amended by adding at 
the end the following flush sentence: 
‘‘For purposes of subparagraph (A), in the case of 
a partner which is an estate or trust, the highest 
rate of tax in effect under section 1 shall be treated 
as being equal to the sum of such rate and the rates 
in effect under paragraphs (1) and (2) of section 
59B(a).’’. 
(6) PARTNERSHIP ADJUSTMENTS.— 
(A) Section 6225(b)(1) is amended by add-
ing at the end the following flush sentence: 
‘‘For purposes of subparagraph (B), in the case of 
an estate or trust, the highest rate of tax in effect 
under section 1 shall be treated as being equal to 
the sum of such rate and the rates in effect under 
paragraphs (1) and (2) of section 59B(a).’’. 
(B) Section 6225(c)(4)(A) is amended— 
(i) by striking ‘‘subsection (b)(1)(A)’’ 
and inserting ‘‘subsection (b)(1)(B)’’, and 
(ii) by striking ‘‘or’’ at the end of 
clause (i), by adding ‘‘or’’ at the end of 
clause (ii), and by inserting after clause 
(ii) the following new clause: 
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149 
‘‘(iii) is not an estate or trust subject 
to one or both of the rates of tax in effect 
under paragraphs (1) and (2) of section 
59B(a),’’. 
(7) 
REQUIRED
PAYMENTS
FOR
ENTITIES 
ELECTING
NOT
TO
HAVE
REQUIRED
TAXABLE 
YEAR.—The second sentence of section 7519(b) is 
amended by inserting ‘‘and, in the case of an estate 
or trust, increased by the sum of the rates in effect 
under paragraphs (1) and (2) of section 59B(a)’’ be-
fore the period at the end. 
(c) CLERICAL AMENDMENT.—The table of parts for 
subchapter A of chapter 1 is amended by adding at the 
end the following new item: 
‘‘PART VIII—SURCHARGE ON HIGH INCOME ESTATES AND TRUSTS’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 410. MODIFICATION OF RULES FOR VALUE OF CER-
TAIN FARM, ETC., REAL PROPERTY. 
(a) 
IN
GENERAL.—Paragraph 
(2) 
of 
section 
2032A(a) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘$750,000’’ and inserting ‘‘$3,000,000’’. 
(b) INFLATION ADJUSTMENT.—Paragraph (3) of sec-
tion 2032A(a) of such Code is amended— 
(1) by striking ‘‘1998’’ and inserting ‘‘2026’’, 
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150 
(2) by striking ‘‘$750,000’’ each place it ap-
pears and inserting ‘‘$3,000,000’’, and 
(3) by striking ‘‘calendar year 1997’’ and in-
serting ‘‘calendar year 2025’’ in subparagraph (B). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2025. 
SEC. 411. MODIFICATION OF ESTATE TAX RULES WITH RE-
SPECT TO LAND SUBJECT TO CONSERVATION 
EASEMENTS. 
(a) MODIFICATION OF EXCLUSION LIMITATION.— 
Subparagraph (B) of section 2031(c)(1) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘$500,000’’ 
and inserting ‘‘$2,000,000’’. 
(b) MODIFICATION OF APPLICABLE PERCENTAGE.— 
Paragraph (2) of section 2031(c) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘40 percent’’ and 
inserting ‘‘60 percent’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2025. 
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151 
TITLE V—ACCESSIBILITY 
REQUIREMENTS 
SEC. 501. ACCESSIBILITY REQUIREMENTS. 
In the case of housing that is constructed, altered, 
or otherwise assisted using amounts made available to the 
Secretary of Housing and Urban Development under this 
Act or an amendment made by this Act, sections 8.22 and 
8.23 of title 24, Code of Federal Regulations (or any suc-
cessor regulations) shall be applied such that the number 
of dwelling units required to be accessible under those sec-
tions is twice the number that would otherwise be required 
to be accessible under those sections. 
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