An overview of federal, state, and local policy shifts shaping housing, lending, and community development — and where PCRG is focused next.
A Turbulent Start at the Federal Level
The start of 2025 brought a rapid wave of federal policy shifts tied to the launch of Trump Administration 2.0. Advocacy organizations, including PCRG and our partners, were forced into immediate response mode as early actions signaled a significant retrenchment from long-standing consumer protections and community investment priorities.
Key Federal Developments
Federal funding clawbacks: The newly created Department of Government Efficiency (DOGE) initiated efforts to review and reclaim previously approved federal dollars, creating uncertainty for housing, infrastructure, and community development programs that communities already rely on.
Rollbacks targeting the Consumer Financial Protection Bureau (CFPB): Executive actions aimed at weakening regulatory oversight and threatening the CFPB — an agency that has returned billions of dollars to consumers nationwide. These rollbacks also jeopardize access to small business lending collection data (Section 1071).
Threats to Community Development Financial Institutions (CDFIs): Proposed changes to the CDFI Fund raised alarms for mission-driven lenders that finance affordable housing, small businesses and neighborhood revitalization in disinvested communities.
Withdrawal of the final Community Reinvestment Act (CRA) Rule: Federal regulators reversed the finalized CRA update, undermining years of work to modernize how banks meet their obligations to the communities they serve. PCRG, as a regional financial watchdog, relies on Housing Mortgage Disclosure Act (HMDA) data to produce our Annual Mortgage Lending Study, which saw its 29th year in 2025.
Why this matters: Together, these actions weaken oversight, limit transparency, and reduce resources for communities already facing housing instability and disinvestment.
At the same time, Congress revisited federal tax policy through the so-called “One Big Beautiful Bill.” While much of the package favors billionaires and millionaires, it includes important updates to the Low-Income Housing Tax Credit (LIHTC) — a proven tool for expanding the supply of affordable rental housing nationwide.
Federal Opportunities Ahead in 2026
Despite setbacks, several federal initiatives remain within reach:
ROAD to Housing Act: Passed the U.S. Senate with overwhelming bipartisan support, this package includes measures to increase housing supply, expand affordability and streamline federal housing programs.
Neighborhood Homes Investment Act (NHIA): A potential tax extender that would help close appraisal gaps in underinvested neighborhoods, supporting homeownership opportunities and community revitalization.
Together, these efforts represent a meaningful opportunity to strengthen the full housing continuum — from affordable rental homes to sustainable pathways to homeownership.
State Policy: Fiscal Risk and Limited Progress
At the state level, 2025 was marked by frustration. A months-long Pennsylvania budget impasse was not resolved until November and ultimately failed to include new revenue for critical priorities like public transportation or new housing programs. Compounding these challenges, the Commonwealth continues to rely on deficit spending and is projected to face a significant fiscal cliff in 2027.
One notable bright spot in the final budget was the creation of the Working Families Tax Credit, a new refundable tax credit designed to provide direct, meaningful support to qualifying Pennsylvanians.
Harrisburg Expectations for 2026
In 2026, attention will turn to the long-anticipated Governor’s Housing Action Plan, first announced at the end of 2024 and shaped by stakeholder feedback from across the Commonwealth.
PCRG has consistently advocated for the plan to include:
Re-establishing a statewide home repair program, similar to Whole-Home Repairs
Zoning reform incentives to encourage local governments to allow more housing options
Expanding homeownership supports to help households build wealth and stabilize communities
In addition to the Housing Action Plan, PCRG will continue working alongside advocates statewide to push for long-term, sustainable public transportation funding, a critical foundation for economic opportunity, housing access, and regional growth.
Local Policy Wins and What to Watch in 2026
Locally, 2025 delivered a major policy milestone: a long-sought agreement among the City of Pittsburgh, Allegheny County, and Pittsburgh Public Schools to adopt the taxing bodies agreement for the Pittsburgh Land Bank. This agreement strengthens the Land Bank’s ability to return vacant and abandoned properties to productive use, stabilize neighborhoods, and advance equitable redevelopment.
Throughout the year, PCRG also showed up alongside community partners at City Council and City Planning Commission meetings to advocate for zoning reforms identified in Pittsburgh’s Housing Needs Assessment. While much public attention and debate focused on Inclusionary Zoning (IZ), including a report co-authored by PCRG, other meaningful reforms advanced and are set to become law in 2026, including:
Accessory Dwelling Unit (ADU) permitting
Reforms to minimum parking requirements, helping to lower housing costs
Updated lot size requirements to enable more small-scale and infill development were passed late in 2025
Looking Ahead in Pittsburgh
The start of 2026 also marks a new mayoral administration under Mayor Corey O’Connor, bringing renewed expectations for City leadership to follow through on campaign commitments to invest in all Pittsburgh neighborhoods. Key priorities include:
Completion of the Citywide Comprehensive Plan
Continued zoning reforms to expand housing options and affordability
Development of a coordinated, citywide housing policy
Improved departmental efficiency, particularly within Permits, Licenses, and Inspections (PLI)
A more transparent and accessible budgeting process
Countywide Opportunities
At the county level, Allegheny County enters 2026 with opportunities to build on housing initiatives launched under the Innamorato Administration. Priorities include expanding existing housing programs and advancing a long-awaited Countywide Comprehensive Plan, to better align land use, housing, infrastructure and economic development. These efforts are especially critical in the face of increasing gentrification, as documented in PCRG’s Allegheny County State of Housing report, which tracks housing and demographic changes from 2018 to 2023.
Staying Engaged with PCRG
As the policy landscape continues to shift at the federal, state, and local levels, the PCRG Policy Team remains committed to keeping residents, our members and stakeholders informed, connected, and ready to engage.
We strive to share the most relevant and timely policy information through:
Regular newsletters highlighting key developments and advocacy opportunities
Active social media engagement to provide real-time updates and analysis
Research and reports that ground policy debates in data and lived experience
Policy Power Hour sessions, creating space for learning, dialogue, and collective action
Together, these tools help ensure that our members and neighbors have the information they need to understand complex policy changes, elevate community voices, and shape policies that strengthen our region.
Want to stay connected? Subscribe to our monthly newsletter, where we share our latest research and announce upcoming Policy Power Hour sessions.