Aurora staff outlines federal reconciliation changes, opportunity zone timeline and earmark prospects

Laurie, a city staff member, told the Aurora City Council’s legislative committee on federal activity that Congress is moving a budget reconciliation bill that would change a number of tax and spending programs affecting municipalities.

She said the Senate is reviewing differences from the House bill and that the Byrd rule — the Senate’s parliamentary rule limiting reconciliation to budget-related provisions — is shaping what may remain in the package. “The goal is to have a vote on it starting on Wednesday, and they’ll do a vote-o-rama for three days,” Laurie said, adding that leadership hopes the measure will be finished before the July Fourth recess.

The nut of the discussion was how several provisions could affect Aurora. Laurie said both chambers would extend or change the Low-Income Housing Tax Credit: the House would extend it through 2029 while the Senate would make it permanent. “The Senate also permanently extends New Markets Tax Credit,” she said, noting Aurora has used those tools in past projects.

Laurie told the committee the bills would change Medicaid cost-sharing rules for some expansion populations beginning Oct. 1, 2028, a proposal she said has prompted controversy among senators. She also said both the House and Senate measures reportedly reduce SNAP benefits and eliminate some energy tax credits created by the Inflation Reduction Act — items drawing GOP opposition in the Senate.

On opportunity zones, Laurie and committee members discussed likely changes and timing. Laurie said the House would extend opportunity zone credits for another round with adjustments, and the Senate proposal would make the program permanent. Liz, a city staff member tracking federal grants, told the committee the Senate text says opportunity zone funding would be available beginning Jan. 1, 2027, if those provisions survive conference.

Laurie also described the appropriations process and how earmarks could reach the city. She said the House Appropriations Committee will mark up bills that include Commerce, Justice, Science, Transportation and HUD — the bills where Aurora’s requests were submitted — in mid-July; she said Congressman Crow submitted about six earmark requests for Aurora. “They usually list out the earmarks the day of the subcommittee markup,” Laurie said.

Committee members asked for follow-up briefings on opportunity zones and for staff to track which provisions survive Senate-House reconciliation and the appropriations markups.

Less-critical items discussed during the update included a list of contested program elements and the uncertain timing of final federal action.

Meeting participants asked staff to return with more-detailed analysis on the opportunity zone application process, and staff said they would provide updates when the subcommittee earmark lists are posted.