Introduction

The report presents bipartisan proposals for how the United States federal government can partner with private capital to build shared prosperity and a more resilient, inclusive economy. Despite a strong recovery from the COVID-19 shock, many communities continue to face underinvestment in housing, infrastructure, small businesses and quality employment. Rising living costs, stagnant wages and unequal access to opportunity have widened economic inequality across income, geography and race. The report positions impact investing as a mechanism to align financial returns with measurable social, economic and environmental outcomes, supported by coordinated federal leadership.

Summary of recommendations

The report advances three core policy pillars. First, it recommends strengthening US economic competitiveness through expanded investment in sustainable infrastructure, renewable energy, community development and domestic industry, alongside reforms to support employee ownership and better coordination of capital flows to underinvested communities.

Second, it calls for fortifying community investing by extending and improving community investment tax programmes, scaling Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), strengthening the Community Reinvestment Act (CRA), and expanding access to capital and technical assistance for small businesses.

Third, it proposes enabling greater impact transparency by standardising sustainability and impact disclosures and clarifying fiduciary duties and shareholder rights to support long-term, impact-aware investment.

Protect and strengthen U.S. economic competitiveness

This chapter focuses on reinforcing competitiveness through inclusive, long-term growth. It highlights opportunities to expand public and private investment in sustainable infrastructure, renewable energy, manufacturing and affordable housing, building on domestic green banks, the Inflation Reduction Act and the CHIPS and Science Act. Ensuring small businesses and local suppliers benefit from industrial revitalisation is identified as essential to job creation and economic resilience.

Employee ownership is highlighted as a key strategy as many business owners approach retirement. The report recommends reducing barriers to employee stock ownership plans and similar models by improving access to capital and liquidity for sellers, including through passage of the Employee Equity Investment Act and support for cooperatives and purpose trusts. Stronger interagency coordination is also recommended, including codifying the Interagency Community Investment Committee and aligning federal programmes to crowd in private capital.

Fortify community investing

This section examines how community investment tools can be strengthened and scaled. With major tax provisions expiring from 2025, the report calls for extending and reforming the New Markets Tax Credit, Low-Income Housing Tax Credit, Historic Tax Credit and Opportunity Zones, with stronger accountability and transparency.

CDFIs and MDIs are identified as critical channels for reaching underserved borrowers, particularly during the COVID-19 crisis. Recommendations include strengthening the Treasury’s CDFI Fund, expanding access to patient risk capital, developing secondary loan markets and improving outcome data. The report also calls for protecting and expanding the CRA, including coverage of non-bank lenders, and continued support for small businesses through recapitalising the State Small Business Credit Initiative and expanding navigation and technical assistance.

Enable greater impact transparency

The final chapter focuses on improving transparency and investor certainty. The report recommends standardised sustainability and human capital disclosures for public and large private companies, aligned with emerging international standards. It also calls for clearer fiduciary guidance, protection of pension fiduciaries’ ability to consider environmental, social and governance factors, updates to the Investment Advisers Act, and preservation of shareholder proposal rights to support long-term value creation.

Acknowledgements

The report was developed with input from a broad group of impact investors, policy experts and practitioners and was produced by the US Impact Investing Alliance, which advocates for investment practices that generate financial returns alongside measurable positive social, economic and environmental impact.