THOMPSON, NEAL, WAYS AND MEANS DEMOCRATS INTRODUCE AMERICAN AFFORDABILITY ACT TO LOWER COSTS FOR AMERICANS

Washington, D.C. – Today, Ranking Member of the House Ways and Means Subcommittee on Tax Rep. Mike Thompson (CA-04),Ranking Member of the House Ways and Means Committee Rep. Richard E. Neal (MA-01), and Ways and Means Democrats held a press conference announcing the American Affordability Act, a comprehensive bill aimed at lowering the cost of living for American families.

“Families are doing everything right and still falling behind as costs keep rising,” said Thompson. “The American Affordability Act is about real relief for families: affordable housing, lower energy bills, more affordable childcare and healthcare, and bigger paychecks. This bill delivers targeted tax relief and smart investments that help families make ends meet and restores the promise that hard work should be enough to get ahead in our country.”

“While Donald Trump projects and dismisses affordability fears as a ‘hoax,’ Democrats have been and always will be at the front of the fight to lower costs for everyday workers and families. Tax Ranking Member Mike Thompson knows that whether it’s tackling the housing crisis, making child care more affordable, or lowering health and energy costs, we have so much work to do to ease the minds of the American people and foster opportunity. The American Affordability Act is a blueprint for the next step in our fight for what we are united to deliver: lower costs and easier, better lives,” said Neal. 

Thompson and Neal were joined by Representatives Terri Sewell (AL-07), Jimmy Gomez (CA-34), Jimmy Panetta (CA-19), and Steven Horsford (NV-04) at the press conference. The bill is co-led by 16 Ways and Means Committee Democrats. 

BACKGROUND

As Americans continue to face rising costs for housing, healthcare, childcare, energy, and education, Thompson led Ways and Means Democrats in designing this comprehensive bill to put money back in Americans’ pockets and strengthen our economy.

The American Affordability Act is designed to lower everyday costs and expand economic opportunity through targeted tax relief and strategic investments. 

The bill does the following: 

Makes Housing More Affordable

• Expands the supply of affordable housing by modernizing and strengthening the Low-Income Housing Tax Credit.
• Provides refundable tax credits for first-time homebuyers and renters to directly reduce housing costs.
• Encourages the conversion of vacant offices and commercial buildings into housing, revitalizing downtowns and increasing supply.
• Prioritizes developments that serve rural communities, veterans, Native American communities, and extremely low-income households.

Lowers Energy and Transportation Costs

• Restores clean energy tax credits that lower utility bills and promote domestic energy production.
• Expands energy-efficiency credits for home upgrades that permanently reduce heating and cooling costs.
• Makes electric vehicles more affordable, including used EVs, charging infrastructure, and electric bicycles.
• Invests in grid resilience, water reuse, and disaster mitigation to reduce long-term costs from outages and extreme weather.

Supports Families and Childcare

• Creates a fully refundable Child Tax Credit with monthly payments.
• Expands the Child and Dependent Care Tax Credit to make childcare more affordable for working parents.
• Supports family caregivers and stabilizes the childcare workforce.
• Makes the adoption tax credit fully refundable.

Reduces Education Costs and Boosting Workers’ Pay

• Expands education tax credits to cover more years of college and workforce training.
• Reduces the tax burden on student loan interest and forgiveness.
• Increases take-home pay through deductions for overtime, tips, and certain worker expenses.
• Strengthens the Earned Income Tax Credit, particularly for workers without children.

Lowers Healthcare Costs

• Expands health insurance premium tax credits to reduce monthly premiums.
• Closes coverage gaps and stabilizes premium increases.
• Requires coverage of recommended vaccines to improve access to preventive care.

Original Co-Sponsors of the American Affordability Act include: Mike Thompson (CA-04), Wesley Bell (MO-01), Donald Beyer (VA-08), Brendan Boyle (PA-02), Judy Chu (CA-28), Angie Craig (MN-02), Danny Davis (IL-07), Rosa DeLauro (CT-03), Suzan DelBene (WA-01), Dwight Evans (PA-03), John Garamendi (CA-08), Daniel Goldman (NY-10), Jimmy Gomez (CA-34), Steven Horsford (NV-04), Julie Johnson (TX-32), Timothy Kennedy (NY-26), John Larson (CT-01), Doris Matsui (CA-07), Sarah McBride (DE-AL), Kristen McDonald Rivet (MI-08), Morgan McGarvey (KY-03), Gwen Moore (WI-04), Frank Mrvan (IN-01), Jimmy Panetta (CA-19), Stacey Plaskett (VI-AL), Mike Quigley (IL-05), Andrea Salinas (OR-06), Linda Sanchez (CA-38), Bradley Schneider (IL-10), Hillary Scholten (MI-03), Terri Sewell (AL-07), Tom Suozzi (NY-03), Dina Titus (NV-01).

Read the full bill text here.