June 2025 Legislative Updates

Hello Memphis! We are very excited to send you this month's Legislative Update. Find below updates from the City, County, State, and National Legislative Agencies.

City of Memphis

BLDG Memphis Urges Dedicated Housing Investment at Moral Budget Press Conference

On Friday, May 30, BLDG Memphis joined fellow advocates, community leaders, and local organizations at a press conference hosted by the Moral Budget Coalition outside the Shelby County Commission. As the FY26 budget process continues, the coalition is calling on public officials to adopt a "moral budget"—one that reflects the real, urgent needs of Memphis residents through meaningful investment in housing, mental health, public transportation, and economic development.

The press conference highlighted recent local developments, such as the long-awaited demolition of the blighted Somerset Apartments and a $1.5 million grant awarded to Clayborn Temple. While these projects are important, speakers emphasized that symbolic victories are not substitutes for structural investment. Cardell Orrin of Stand for Children noted that without a clear plan for creating new affordable housing or expanding public transit, opportunities for growth and access remain out of reach for many Memphians. Cathy Emerson of the Braid Foundation added that increased funding is needed to meet the growing mental health needs of Memphis youth.

Representing BLDG Memphis, Director of Advocacy Jonathan Mosley delivered an urgent call for action on affordable housing: “Memphis cannot afford to wait any longer to dedicate sustainable funding to the Memphis Affordable Housing Trust Fund.” - We laid out the stark reality facing many families: nearly half of all Memphis renters are rent-burdened, and the city is short over 44,000 affordable housing units for its lowest-income residents. At the same time, construction costs continue to soar—making it increasingly difficult for nonprofit developers to close funding gaps of $30,000 to $50,000 per unit.

To ensure long-term impact, BLDG Memphis is recommending the city secure dedicated revenue streams—such as a portion of the Short-Term Rental Tax and a share of the City’s debt service—to stabilize and grow the MAHTF to at least $11 million annually by 2030.

As part of the Moral Budget Coalition, BLDG Memphis proudly stands with organizations across the city in demanding bold, community-driven investments that strengthen neighborhoods and advance equity for all Memphis residents.

WREG Story: https://wreg.com/news/local/memphians-push-for-more-investment-in-budget-season/

FY26 Budget Process Underway
The City of Memphis has launched its FY26 budget process, with Mayor Paul Young proposing a plan that prioritizes public safety, maintains essential services, and safeguards the city’s financial stability. The $883 million proposed budget dedicates 70% to personnel, with nearly 63% going toward police, fire, and neighborhood improvement efforts. While no tax increases are proposed, the administration is focused on building the city’s fund balance to ensure long-term fiscal health. A key challenge is the $39 million in recurring compensation requests through the impasse process—negotiated increases for frontline workers such as police and fire—which Mayor Young has cautioned could lead to cuts in over 550 positions if fully approved without new revenue.

Mayor Young emphasized that the FY26 budget is about balance—”making responsible decisions today to sustain progress tomorrow”. Rather than approving all union requests this year, the administration is planning for phased compensation increases over the next three years, beginning with police salaries. With projected revenue growth on the horizon, including a potential $15 million surplus in FY27, the City is taking a measured approach to avoid overcommitting and risking its credit rating or critical services. As Mayor Young noted, “This budget isn’t about saying no. It’s about saying ‘not yet.’”

Budget Hearings began May 5 and continue through early June.
Second Working Session: Wednesday, May 28, from 2:00–6:00 PM in Conference Room A, 4th Floor, City Hall.
Budget Wrap-Up: Tuesday, June 3, from 2:30–6:00 PM in the Council Committee Room, 5th Floor, City Hall.

Access the full proposed FY26 operating budget here: FY26 Budget Document
For Budget Hearing and Documents: Click here

Shelby County

Shelby County FY26 Budget Includes Historic Property Tax Rate Cut

Last month, Shelby County Mayor Lee Harris presented his FY26 budget proposal to the Shelby County Commission, highlighting a historic 66-cent property tax rate cut. The proposed budget reduces the county's property tax rate from $3.39 to $2.73 per $100 of assessed value—a 20% decrease and the first time in 27 years the rate would fall below $3.00 if approved.

This marks the seventh consecutive budget under Mayor Harris without a property tax increase. Framing the move as a benefit to working families, Mayor Harris emphasized fiscal responsibility, stating, “We don’t spend more than what we receive.” The proposed reduction, if adopted, could result in significant savings for thousands of Shelby County residents. The budget now awaits deliberation by the County Commission. The full commission has one more voting meeting on June 23 to approve an operating budget, a capital budget and set the county property-tax rate before the fiscal year begins.

Major Economic Development News
Hyosung HICO, Ltd., a South Korean manufacturer of power transformers, has announced a $50.8 million expansion in Memphis and Shelby County. This project is expected to create 123 new jobs and strengthen the county’s role in advanced manufacturing and energy infrastructure.

More information on the announcement: Hyosung HICO Expansion

State of Tennessee

Tennessee Legislative Session Wrap-Up

The 2025 Tennessee legislative session has officially concluded, bringing a mix of progress and pause on key issues affecting communities across the state. Lawmakers advanced measures to strengthen transportation funding, including a new dedicated revenue stream for the state highway fund and a forthcoming study on long-term infrastructure needs. In housing, modest adjustments were made to existing incentive programs, while broader proposals related to tax credits and valuation reform stalled. Meanwhile, significant structural changes—such as the dissolution of the Tennessee Human Rights Commission—raised concern among advocates. As the state navigates potential federal budget cuts, organizations like ThinkTN and the ACLU of Tennessee have released detailed summaries to help communities and stakeholders stay informed.

ThinkTN Legislative Overview available at: ThinkTN Legislative Summary

Transportation Funding:

New Tire Tax for Highways: HB 969/SB 144 redirects sales tax from new and used tires (starting July 2025) to the state highway fund—capped at $80M in the first year, projected at $95.7M annually afterward.
TACIR Infrastructure Study: HB 736/SB 703 commissions a study on long-term highway and bridge funding needs, exploring options like road usage fees, truck impact fees, and more. Report due by Sept. 2026.

Housing Legislation:

Attainable Housing Deed Restriction Change: HB 863/SB 1193 modifies the required duration of deed restrictions on multi-family incentive housing from perpetual to at least 30 years.
Unfunded Housing Credit Program: Efforts to fund the TN Rural and Workforce Housing Tax Credit ($300M over 12 years) were taken off notice in both chambers.
New LIHTC Valuation Proposal: HB 753/SB 539 would’ve excluded tax credits from property value assessments for new low-income housing; it was not discussed.

Other breakdowns:

Dissolution of the Tennessee Human Rights Commission: A controversial bill passed that eliminates the state’s human rights oversight agency.
Details: TML Legislative Summary
ACLU of Tennessee offers a comprehensive wrap-up of legislative trends, including criminal justice, voting rights, education, and housing.
Review the report: ACLU 2025 Session Summary
Budget Debate & Federal Cuts: Lawmakers are navigating uncertainty around federal budget cuts, which may impact state programs and services.
Read more: Tennessee Lookout Coverage

National

BLDG Memphis Federal Policy Update

As a member of the Community Opportunity Alliance’s 2025 Policy Committee, BLDG Memphis is actively advocating for federal policies and programs that expand resources to community development organizations and support historically under-resourced communities. With Congress turning its attention to Fiscal Year 2026, both reconciliation legislation and appropriations debates are expected to shape a busy and high-stakes summer.

Reconciliation Update: "One Big Beautiful Bill"

Just before the Memorial Day weekend, the U.S. House narrowly passed its reconciliation bill (215–214) following 21 hours of Rules Committee markup and several political concessions. The bill now moves to the Senate, where significant revisions are expected. Under the budget reconciliation process, the bill can pass with a simple majority but must comply with the Byrd Rule, which limits non-budgetary provisions.

Key provisions and omissions:

Does not include the Neighborhood Homes Investment Act, New Markets Tax Credit extension, or Historic Tax Credit modernization.
Includes provisions to extend, expand, and revise Opportunity Zones:
- Extended through 2033
- At least 33 percent of new zones must be in rural areas
- Stricter eligibility criteria for new zones
Restores a 12.5 percent boost to the 9 percent Low-Income Housing Tax Credit (LIHTC) for 2026–2029.
Reduces the bond-financing threshold for the 4 percent LIHTC from 50 percent to 25 percent.
Raises the State and Local Tax (SALT) deduction cap from $10,000 to $40,000, with income and inflation adjustments.
Accelerates phaseouts of clean energy tax credits to gain support from fiscal conservatives.
Public land sales provisions were removed following Republican objections.
Work requirements for Medicaid remain in the bill, though implementation is likely to vary by state.

The Congressional Research Service estimates that reconciliation bills take an average of 152 days to complete, indicating this process may stretch well into the summer.

FY26 Appropriations: Proposed Cuts and Upcoming Markups

House Appropriations Chair Tom Cole (R-OK) has released the FY26 markup calendar with a topline spending target of $1.613 trillion. This aligns with the Trump Administration's proposed “skinny budget” and includes a 17 percent cut to non-defense discretionary spending. These cuts could have serious implications for housing, transportation, health, and community development programs.

Key appropriations markup dates:

June 5 and June 11: Agriculture-FDA
June 23 and June 26: Financial Services
July 7 and July 10: Transportation-HUD (which includes affordable housing programs
July 21 and July 24: Labor-HHS-Education

What to Watch:

How extensively the Senate rewrites the House reconciliation bill and whether core community development tools are restored.
The impact of proposed discretionary spending cuts on programs critical to local and regional equity.
The long-term direction of Opportunity Zones and LIHTC reforms.

BLDG Memphis will continue to monitor these developments and advocate for policies that strengthen our communities through equitable investment and support for community-based organizations.

BUILDING MEMPHIS TOGETHER - Highlighting the work of local leaders, advocates and organizations.

BLDG Memphis Spotlight: Binghampton Community Land Trust Groundbreaking

Congratulations to the BCLT (Binghampton Community Land Trust) on its recent groundbreaking. This marks a significant milestone for community-driven land ownership and housing access in Memphis.

Since its founding in 2018, the Binghampton Community Land Trust (BCLT) has been working to preserve affordability and combat displacement in the Binghampton neighborhood of Memphis. This nonprofit organization uses the community land trust model to acquire, rehabilitate, and resell blighted properties—ensuring homes remain permanently affordable for long-time residents and new families alike.

By centering community leadership and long-term affordability, BCLT is providing a grassroots response to the growing challenges of gentrification and housing insecurity. Their work is a powerful example of how neighborhood-driven efforts can create sustainable, equitable housing solutions.

Visit their website to learn more and partner with BCLT: www.binghamptonclt.org

Community Land Trusts (CLTs) continue to grow as a model for affordable housing and neighborhood stability. Learn how CLTs are operating in cities across the U.S.:

Call to Action: CSA Community Needs Assessment Survey: Shelby County Community Services Agency (CSA), the primary provider of rent and utility assistance for local residents, is seeking your input! As they work to secure funding and shape future programming, your voice can help ensure resources go where they’re needed most. Your feedback plays a key role in building more effective, community-driven support across Shelby County. Take survey here.

Safety Action Plan - We want to hear from you! Your input is essential in shaping safer streets for Memphis. The City of Memphis is developing a Safety Action Plan aimed at significantly reducing roadway fatalities and serious injuries for all road users, including pedestrians, bicyclists, and motorists. To ensure the plan reflects the community's needs and concerns, we invite you to participate in a brief survey.

Your feedback will help identify key safety issues and guide effective solutions.

Take the survey and get involved here.

Helpful Reading and Resources:

Affordable Housing

Equitable Development

Transit

Pedestrian Safety

Upcoming Legislative Meetings

Congress.gov - Calendars and Schedules
State of Tennessee General Assembly -
- Senate Calendars, House Agendas and Subcommittee Calendars here.
Shelby County Commission- Agendas and Live Streaming Available Here
Memphis City Council- Agenda Available Here Live Streaming Available Here

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Bret Bilbrey published this page in Blog 2025-07-02 20:36:52 -0500