Main Street America’s Government Relations team, guided by our recently released Policy Agenda, is monitoring and actively advocating for issues of importance to Main Street communities across the country. At the federal level, several processes are currently underway with implications for Main Street programs and projects. From the budget to tax policy, here’s what you need to know.

Previously appropriated FY25 funding for State and Tribal Historic Preservation Offices is under threat

State and Tribal Historic Preservation Offices are essential to the revitalization of historic downtowns. Many Main Street programs use preservation resources — from tax credits to grant programs — facilitated through partnerships with State Historic Preservation Officers (SHPOs) and Tribal Historic Preservation Officers (THPOs). Currently, the federal government is withholding regular funding from these entities, leading to staff reductions and service limitations. 

We encourage Main Street leaders to collaborate with preservation partners in their state to reach out to members of Congress and state leadership. Share the message: Preservation is important to Main Street, and our SHPOs and THPOs play a key role in coordinating and supporting Main Street preservation and economic development goals. The National Council of State Historic Preservation Organizations has created advocacy materials you can use.

The House passed its version of the tax and spending reconciliation bill, and it does not include improvements to the Historic Tax Credit. Main Street advocates are encouraged to reach out to Senators to support HTC-Go

The Historic Tax Credit Growth and Opportunity Act (HTC-Go) (H.R. 2941/S. 1459) would create several changes to the existing federal historic tax credit to increase its use and value in Main Street communities. You can learn more about the important provisions in HTC-Go here >

Tax legislation is currently being debated in Congress through the reconciliation process, which means that only Republican votes are required to pass the bill. The House of Representatives completed its version of the bill on May 22, and the current House bill does not include HTC-Go. Senators will consider the bill next, and your input is needed to request support for HTC-Go. Use this memo to aid in your outreach to Senators. 

The recently released ​“skinny” budget includes concerning proposals for federal funding cuts, but it is only the first step in a year-long negotiation

The federal budget process is an annual occurrence in which Congress sets spending levels for the following fiscal year. The first step in this process is always the release of the President’s budget proposal. While we await the full proposal, the Trump Administration released a ​“skinny” budget earlier this month, which includes funding cuts that would impact Main Street programs. 

Main Street America is tracking several concerning proposed cuts, including:

• Community Development Block Grants
• Historic Preservation Fund
• USDA Rural Development Programs
• Economic Development Administration Grants
• Community Development Financial Institutions

While the President’s budget suggests alarming changes to funding sources that support Main Streets, Congress, particularly members of the Appropriations Committees in the House and Senate, determines annual funding levels. Main Street America, along with coalitions of partners and Main Street state and local leaders, regularly advocates for these funding sources and will continue to do so. As the budget process unfolds this year, we will maintain communication, particularly through Main Street Coordinating Programs.

Main Street leaders can and should play a role in speaking up on these issues

Your voice is key to maintaining funding for programs important to Main Street and advancing policies that support reinvestment in commercial districts. In addition to the immediate needs mentioned above, one of the most valuable ways local Main Street leaders can engage with federal leaders is by hosting a Member of Congress or their staff for a tour of their Main Street district and projects. Sharing the results of your work first-hand is an excellent way to educate elected officials on the value of Main Street and open the door to give your input on important federal issues. 

Interested in engaging on your turf with your elected officials? Congress is in recess for the entire month of August, which is an ideal time to engage with your federal elected representatives. Now is the perfect time to begin planning an event with elected officials when they return home in August. To get started, review our one-page guide to hosting a district tour here >

Remember to share your engagement with elected officials with your Coordinating Program and with MSA’s Government Relations team. The Government Relations team speaks to hundreds of Main Street leaders every year, and our goal is to support you. Whether you need guidance on meeting with an elected official or want to join us in Washington, D.C., to advocate, we’re here to help you take the actions that will support your program. You can reach us at advocacy@​mainstreet.​org.