Trump Says Opportunity Zones Are #1

President Donald J. Trump just said that Opportunity Zones are “probably the number one economic development project ever.”

Plus, two more OZ champions join the Administration, and Jimmy highlights the upcoming OZ Pitch Day agenda.

About OZ NewsHour

OZ NewsHour covers the key stories happening right now in the world of Opportunity Zones. Hosts Andy Hagans and Jimmy Atkinson discuss the powerful trends that investors, fund managers, real estate developers, and industry professionals need to know. If it’s a must-know development in the Opportunity Zone world, we cover it here.

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Episode Summary

Donald Trump recently called Opportunity Zones the number one economic development program ever at a White House event honoring Black History Month. His remarks, alongside key cabinet confirmations, signal strong support for the program and raise the likelihood of an extension or expansion in 2025.

In this episode of OZ NewsHour, Jimmy Atkinson and Andy Hagans discuss Trump’s comments, the political outlook for Opportunity Zones, new champions of the program in the administration, and the latest data from Novogradac on OZ investment trends.

Trump’s Endorsement of Opportunity Zones

During the White House event, Trump credited Senator Tim Scott as the “father” of Opportunity Zones, while calling himself the “son” of the program. He praised OZs as the most successful economic development initiative in U.S. history and emphasized his commitment to extending and expanding the program.

While Trump does not have unilateral authority to extend OZs, his endorsement puts pressure on Congress to act. The key question remains: Will Opportunity Zones be included in upcoming tax legislation?

New Administration Officials Supportive of Opportunity Zones

Two major confirmations suggest the program will be a priority in Trump’s second term:

  • Scott Bessent confirmed as Treasury Secretary. During his Senate confirmation, Bessent spoke favorably about OZs, particularly their role in solving the housing crisis. Since the IRS regulates Opportunity Zones, having a Treasury Secretary who supports the program is a significant win.
  • Scott Turner confirmed as HUD Secretary. A long-time champion of Opportunity Zones, Turner led Trump’s White House Opportunity Zone and Revitalization Council during his first term. His new position at HUD (Housing and Urban Development) suggests a major push for OZ-driven affordable housing and infrastructure projects.

Both appointments reinforce the administration’s support for OZs and increase the likelihood of policy expansion.

What’s Next for Opportunity Zone Legislation?

The biggest open question in the OZ community is whether Congress will pass legislation to extend or expand the program before the current sunset date of December 31, 2026.

Historically, major tax legislation happens late in the year (Trump’s 2017 Tax Cuts and Jobs Act was signed in December). However, recent signals from Trump suggest a different strategy:

  • Trump prefers a single tax reform bill that combines multiple priorities, including border security and government spending.
  • This approach could accelerate tax negotiations, leading to earlier action on Opportunity Zones.
  • If the House version of tax reform moves forward, OZ legislation could pass before year-end instead of being delayed until December.

While uncertainty remains, the recent endorsements, cabinet picks, and political positioning all suggest that OZ advocates have reason to be optimistic.

Latest Data: Where Are Opportunity Zone Investments Flowing?

New data from Novogradac’s Q4 2024 OZ Capital Raising Survey provides insights into where capital is flowing:

$40 billion in reported OZ equity raised, with real total estimates exceeding $150 billion when accounting for unreported funds.

Top 3 cities for OZ investment:

  1. Los Angeles, CA – $1.7 billion raised across 56 investments.
  2. Washington, DC – A top OZ destination, despite uncertainty about its future economy.
  3. New York, NY – Continues to attract OZ capital despite state tax headwinds.

Notably, Ohio cities (Cleveland & Columbus) rank high on the list, likely due to state-level OZ tax incentives.

One surprise: California and New York remain among the most popular OZ investment locations, despite their state-level tax non-conformity, which prevents investors from receiving local tax benefits.

How the Market Is Reacting to Opportunity Zones

  • Cleveland & Columbus leading in deal count suggests a trend toward smaller, high-volume projects rather than large developments.
  • Sunbelt cities like Phoenix & Nashville remain strong, despite concerns about overbuilding.
  • Potential weakness in Washington, DC, as recent layoffs and economic shifts could impact OZ-driven housing demand.

While investment has slowed compared to peak years, Opportunity Zones remain a major force in real estate development and impact investing.

OZ Pitch Day: What’s Next for the Industry?

With renewed White House support and ongoing investor interest, the March 6 OZ Pitch Day will feature in-depth discussions on Trump’s Opportunity Zone strategy for 2025.

A key panel will include:

  • Emily Lavery (Fulcrum Public Affairs), a former policy advisor to Senator Tim Scott who has been a leading advocate for OZ extension.
  • Peter Lawrence (Novogradac & Company), a top expert on tax legislation and OZ policy.

This event will provide critical insights into what’s coming next for Opportunity Zones and how fund managers can prepare.

Conclusion

  • Trump’s strong endorsement of Opportunity Zones signals a high likelihood of extension.
  • Key cabinet picks—Scott Bessent (Treasury) and Scott Turner (HUD)—are supportive of the program and could influence policy decisions.
  • Congress must pass legislation, and Trump’s preference for a large, multi-issue bill may move tax reform forward faster than expected.
  • Andy & Jimmy’s new show, Fund Playbook, is now available on Apple Podcasts, Spotify, and YouTube.
  • Novogradac data shows ongoing OZ investment activity, with Los Angeles, DC, and NYC leading the way.
  • OZ Pitch Day on March 6 will feature experts discussing what Trump’s tax plan means for the industry.

With strong momentum and growing political support, Opportunity Zones are well-positioned for a major legislative push in 2025.