Wealthy Investors Are Still Tapping Trump Tax Break in Pandemic

Money is still flowing to one of the biggest fund managers tapping a Trump administration tax break for investing in distressed U.S. communities.

Bridge Investment Group said Wednesday that it has raised $1.3 billion to deploy in “opportunity zones,” areas where investors can get generous perks for backing businesses or developing real estate. That’s up from about $950 million the asset manager had at the end of last year.

The two-year-old program, allowing investors in roughly 8,700 census tracts to defer and avoid taxes on capital gains, has become deeply controversial. Supporters say the incentives spur development in areas that ...