Rep. Kelly, Sec. Bessent tout Erie's successful Opportunity Zones during high-profile Ways & Means hearing

WASHINGTON, D.C. -- During a full Ways & Means Committee hearing with U.S. Treasury Secretary Scott Bessent on Thursday, U.S. Rep. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax, highlighted the success of Erie's Opportunity Zones. Kelly also invited the Secretary to Erie to tour the city's projects.

"Opportunity Zone investments have expanded housing, supported small businesses and entrepreneurship, spurred innovation, and revitalized long-forgotten communities. Erie, Pennsylvania, demonstrates the transformative potential of Opportunity Zones," said Rep. Kelly.

"I've heard that Erie is the posterchild in a great way for Opportunity Zones. So, I look forward to coming to visit, and I look forward to visiting the rural areas in your district," said Sec. Bessent.

VIDEO: Watch Rep. Kelly's exchange with Sec. Bessent during Thursday's hearing on Rep. Kelly's YouTube channel.

BACKGROUND

Opportunity Zones were first created under the 2017 Tax Cuts & Jobs Act (TCJA). They allow investors from all over the United States to invest their capital gains earnings in economically distressed communities where new investments can be eligible for preferential capital gains tax treatment. Instead of sitting idle in a brokerage or bank account, this money is put to work in communities that have not seen significant private investment for some time.

Rep. Kelly has led Opportunity Zones legislation in Congress. In 2025, The Working Families Tax Cuts made permanent and expanded Rep. Kelly's Opportunity Zones (OZ) legislation, which encourages private investment in low-income and rural communities.

In March, he introduced the "Increasing Housing in Opportunity Zones Act," legislation that enables the U.S. Secretary of Housing & Urban Development added weight to applicants for competitive HUD grants that are located in, or primarily serve, designated Opportunity Zones to support housing preservation and construction. The legislation passed the U.S. House in May.

Since its enactment, Opportunity Zones have attracted more than $100 billion in private investment across thousands of communities nationwide.

About Erie's Opportunity Zones

Erie, Pennsylvania may best exemplify the economic benefits and the tangible changes Opportunity Zones can create in a relatively short period of time. In 2018, the city's downtown ZIP code, 16501, was named the poorest in Pennsylvania and among the poorest nationwide. However, through the potential of OZs, the stigma of Pennsylvania's poorest ZIP code served as a springboard for investment in the area.

Shortly after TCJA was signed into law, a group of local residents recognized how Opportunity Zones could revitalize the city. Major employers, local universities and other organizations partnered to provide initial financial backing to form the Erie Downtown Development Corporation (EDDC).

To date, EDDC has leveraged more than $115 million in private investment into downtown Erie, which has built 108 new fully occupied residences, revitalized and created more than 100,000 square feet of new commercial space, and established space for 25 new businesses. Overall, $400 million of long-term capital investment is at work, breathing new life into Downtown Erie.

You can read Rep. Kelly's op-ed with U.S. Housing & Urban Development Secretary Scott Turner and U.S. Senator Tim Scott (R-SC) from 2025 on FoxNews.com here.