Trump’s Big Budget Win Lifts Opportunity Zone Outlook

Trump’s recent budget win has sparked renewed enthusiasm for new Opportunity Zones legislation in 2025.

Plus, OZ Pitch Day attracted a record audience, proving the program’s growing popularity among investors.

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

On this month’s OZ NewsHour, hosts Jimmy Atkinson and Andy Hagans break down the recent surge of enthusiasm for Opportunity Zone (OZ) legislation following President Trump’s significant budget win. The passage of the budget resolution for fiscal year 2025 and the continuing resolution to fund the government through September 30th have reignited optimism for the extension and renewal of the OZ program. Jimmy and Andy discuss the implications of these developments, reactions from industry stakeholders, and key updates from recent OZ-related events and policy proposals.

President Trump’s Budget Win

Jimmy and Andy begin by discussing the House’s passage of the budget resolution on February 25th, which signaled a commitment to $4.5 trillion in tax cuts over the next decade. This move was seen as a crucial first step toward crafting a comprehensive tax bill, which could include the extension of the OZ program.

A second significant development was the passage of the continuing resolution to keep the government funded through the end of September, averting a potential shutdown. The resolution passed with support from key Republican and Democratic senators, including Senate Majority Leader Chuck Schumer, who ultimately decided that a shutdown would be politically disadvantageous.

These two budget victories for the Trump administration have created renewed hope for legislation that could extend or enhance the OZ program later this year.

Growing Optimism for Opportunity Zones

Following the budget win, Jimmy and Andy noted a noticeable increase in enthusiasm within the OZ community. The most recent OZ Pitch Day saw record attendance and registrations, reflecting a positive shift in sentiment. This renewed interest aligns with increased political momentum and support for OZs from the Trump administration.

During a recent Fox News appearance, HUD Secretary Scott Turner reiterated the administration’s commitment to extending and expanding the OZ program. Turner highlighted the success of OZs in driving investment and community development, noting that the program has reportedly lifted one million people out of poverty and spurred the creation of housing and business infrastructure. Turner also emphasized the potential of OZs to address the affordable housing crisis, calling for a 2.0 version of the program.

OZ Pitch Day Highlights

Jimmy recaps the success of the most recent OZ Pitch Day, which featured numerous presentations from fund managers and stakeholders. One of the most well-received sessions was a legislative update panel featuring Emily Lavery and Peter Lawrence, who provided insights into the latest policy discussions on Capitol Hill. The session attracted a significant audience, reflecting the community’s hunger for legislative news.

Title sponsor Your Space America presented several self-storage deals in the Southwest, while other sponsors showcased a range of projects and investment opportunities. Jimmy shares metrics from the event, including a sharp increase in registrations and live attendance, signaling that the OZ investment community is regaining momentum after a period of uncertainty.

Key Policy Updates and Proposals

Jimmy and Andy discuss several recent policy developments and proposals from key OZ advocacy groups:

  • America First Policy Institute (AFPI): AFPI released four policy briefs proposing enhancements to the OZ program. Recommendations include creating a national OZ promotional group, encouraging rural OZ investment, and harmonizing state tax incentives with federal policy.
  • Economic Innovation Group (EIG): EIG released a report highlighting that OZs may be the most effective housing policy in the U.S. today, citing the creation of over 300,000 new housing units at a relatively low cost per unit. The report indicates that OZ investments are significantly impacting housing supply, addressing one of the program’s primary goals.

White House and Political Support for OZs

Jimmy and Andy discuss how the Trump administration’s recent moves indicate a favorable stance toward OZs. The appointment of Aaron Headland as Chief Economist for Domestic Policy at the Council of Economic Advisors and his involvement in drafting pro-OZ policy papers with AFPI signals strong White House support.

Scott Turner’s ongoing national tour to promote Opportunity Zones also demonstrates the administration’s commitment. In a recent Philadelphia event, Turner reported that OZs have attracted $84 billion in private investment to date, and he is actively advocating for OZ 2.0 to make the program permanent.

The Upcoming “Yellow Brick Road to QOZ 2.0” Event

Jimmy previews the upcoming “Yellow Brick Road to QOZ 2.0” conference in Park City, Utah, hosted by the American Association of Opportunity Zones. This event will gather investors, developers, fund managers, and policymakers to discuss the future of OZ legislation and best practices for managing OZ investments. Jimmy is scheduled to speak on a panel about OZ legislation, and the event will feature notable speakers from across the industry, including leaders from Novogradac, Driftwood Capital, and Pinnacle Partners.

Real Estate Market Insights

The episode also covers broader market trends affecting OZ investments, including recent SEC rule changes that ease accredited investor verification requirements for private funds, including many OZ funds. Jimmy and Andy discuss how this rule change could reduce friction in raising capital and foster more investor participation.

Key Takeaways

  • The Trump administration’s budget victories have reinvigorated the push for extending and expanding Opportunity Zones.
  • Recent comments from Scott Turner and other administration officials indicate strong support for OZs and potential legislative action in 2025.
  • OZ Pitch Day saw record attendance, reflecting the renewed enthusiasm within the OZ community.
  • Policy groups like AFPI and EIG continue to advocate for improved and extended OZ legislation, emphasizing the program’s success in boosting housing supply and community development.
  • The upcoming “Yellow Brick Road to QOZ 2.0” conference is expected to be a major event for the OZ industry, providing a platform for discussing legislative strategies and investment opportunities.

Final Thoughts

Jimmy and Andy conclude that the current momentum in OZ policy and community engagement is highly encouraging. They anticipate that the coming months will be pivotal for the program’s future, as both policymakers and private stakeholders work to secure the long-term viability of Opportunity Zones.