Congress Votes 390-9 to Lift PWI Cap

WASHINGTON February 11^th, 2026 – The U.S. House of Representatives passed the Housing for the 21st Century Act by an overwhelmingly bipartisan vote of 390-9. This legislation includes the proposal to lift the public welfare investment (PWI) cap from 15 to 20 percent, a move that potentially, could unlock literally billions in dollars in additional investment in the Housing Credit  

Now it’s time for the Senate, and there are a number of issues that will need to be resolved before a final affordable housing package is enacted  

The Housing for the 21st Century Act (H.R.6644) includes the proposal to lift the public welfare investment (PWI) cap from 15 to 20%. A recent study by the AHTCC found 42% of banks that invest in LIHTC are approaching the 15% PWI cap.  

Leading the effort are Reps. Mike Lawler (R-NY), Joyce Beatty (D-OH), and Young Kim (R-CA) in the House and Senate Banking Committee Chairman Tim Scott (R-SC) and Sens. Lisa Blunt-Rochester (D-DE), Bernie Moreno (R-OH), and Andy Kim (D-NJ) in the Senate.  

The Housing for the 21st Century Act also includes NEPA and HUD environmental review streamlining provisions, which would reduce delays for small, infill, and HUD-assisted housing projects. While this proposal is included in the House’s Housing for the 21st Century Act, it is not included in the Senate’s ROAD to Housing Act. 

Though the Housing for the 21st Century Act includes many elements of the HOME Reform Act, the provision to exempt HOME funds from Build America, Buy America (BABA) requirements that was previously included in the legislation was not included in the updated bill text. Instead, the bill now includes a provision that would direct HUD to conduct an evaluation of BABA and issue updated guidance on it within 90 days. There may still be an opportunity to include the BABA exemption in a final negotiated bill between the House and the Senate, though the Senate’s ROAD to Housing Act is silent on BABA reforms. 

 Expanding banks’ capacity to invest in the Housing Credit could help sustain demand for the additional credits made available through the program’s historic expansion in the One Big, Beautiful Bill Act in January 2026.