HR7138119th CongressWALLET

Stop Wall Street Landlords Act of 2026

Sponsored By: Representative Khanna

Introduced

Summary

Limits big investors' tax advantages on single-family rentals. This bill would deny common property tax deductions, add a large excise tax on sales, and block federal mortgage support to curb large-scale ownership of 1–4 unit rental homes.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Big landlords lose rental tax breaks

If enacted, very large investors (more than $100,000,000 in net assets) would lose tax deductions for most 1–4 unit rental homes. The bill would disallow mortgage interest, mortgage insurance, and depreciation deductions for those investors, but it would exempt an investor's principal residence and homes they originally built or substantially rehabilitated. The bill would also impose an excise tax on sales by those investors equal to the sale price of the home. These rules would start for payments, depreciation, sales, and transfers more than 18 months after enactment, and related owners would be treated as a single taxpayer under group rules.

No federal mortgage support for big investors

If enacted, the housing finance regulator would be required to bar Fannie Mae and Freddie Mac from newly buying, securitizing, or lending on mortgages where the mortgagee is a specified large investor. The bill would also bar Ginnie Mae from guaranteeing securities or buying mortgages that include such investor-originated loans. The rule would use the same $100,000,000 net-asset test as the tax provisions in the bill.

Transfer taxes fund lowest-income housing

If enacted, amounts collected under the investor transfer tax would be deposited into the federal Housing Trust Fund. Congress would need to appropriate the deposits before the money could be spent. The funds would be used to increase and preserve rental housing affordable to extremely low- and very low-income families, including homeless families.

Sponsors & CoSponsors

Sponsor

Khanna

CA • D

Cosponsors

  • Rep. Watson Coleman, Bonnie [D-NJ-12]

    NJ • D

    Sponsored 1/16/2026

  • Rep. Deluzio, Christopher R. [D-PA-17]

    PA • D

    Sponsored 1/16/2026

  • Rep. García, Jesús G. "Chuy" [D-IL-4]

    IL • D

    Sponsored 1/16/2026

  • Jackson (IL)

    IL • D

    Sponsored 1/16/2026

  • Simon

    CA • D

    Sponsored 1/16/2026

  • Rep. Takano, Mark [D-CA-39]

    CA • D

    Sponsored 1/16/2026

  • Rep. Frost, Maxwell [D-FL-10]

    FL • D

    Sponsored 1/16/2026

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 1/16/2026

  • Rep. Tokuda, Jill N. [D-HI-2]

    HI • D

    Sponsored 1/16/2026

  • Rep. Lee, Summer L. [D-PA-12]

    PA • D

    Sponsored 1/16/2026

  • Rep. Kelly, Robin L. [D-IL-2]

    IL • D

    Sponsored 1/16/2026

  • Cherfilus-McCormick

    FL • D

    Sponsored 1/16/2026

  • Rep. Thanedar, Shri [D-MI-13]

    MI • D

    Sponsored 1/16/2026

  • Rep. Vasquez, Gabe [D-NM-2]

    NM • D

    Sponsored 1/27/2026

  • Grijalva

    AZ • D

    Sponsored 2/4/2026

Roll Call Votes

No roll call votes available for this bill.

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