Category: Policy Landscape

Congress Faces Daunting Fall Agenda of Infrastructure Bills, Budget Funding and Debt Limit Deadlines

Posted on by Trey Jackson

red lines to Capitol

Several significant issues affecting commercial real estate converge this month as Congress faces deadlines on a $550 billion “physical” infrastructure bill, a separate $3.5 trillion “social” infrastructure package, government funding for FY2022, and the national debt ceiling.  

The full Senate will return on Sept. 13 and the House on Sept. 20. Deadlines to watch as policymakers face a daunting agenda: 

Sept. 15 — Reconciliation Bills Expected 

  • House committees this week began work on completing various portions of the massive social infrastructure package – including tax revenue raisers impacting CRE – by a Sept. 15 deadline set by House Speaker Nancy Pelosi (D-CA). The $3.5 trillion package will be considered under “reconciliation” budget rules that would only require Democratic votes to pass. (The Hill, Sept. 9 and Roundtable Weekly tax story below)
     
  • Senate Majority Leader Chuck Schumer (D-NY) has instructed his committees to finalize their parts of the upper chamber’s reconciliation bill by Sept. 15 – although this deadline is non-binding and expected to slip. (CNBC, Aug. 11)
     
  • Sen. Joe Manchin (D-WV) wrote in a Sept. 2 Wall Street Journal op-ed that Congress should take a “strategic pause” on the reconciliation package. In a 50-50 Senate, the votes of moderate Democrats such as Manchin and Krysten Sinema (D-AZ) are crucial for passage. 

Sept. 27 — House infrastructure Vote 

House of Reps vote

  • The Senate on Aug. 10 passed a bipartisan bill addressing physical infrastructure with $550 billion in new spending. (Roundtable Weekly, Aug. 13) 
  • Pelosi has set a Sept. 27 deadline for the House to vote on the Senate-passed bill. Pelosi’s move accommodated a group of 10 moderates in her caucus who insisted on de-coupling House votes on physical and human infrastructure legislation. (Roundtable Weekly, Aug. 20)
     
  • Pelosi can afford to lose only three Democratic votes in the narrowly divided House if all Republicans oppose a bill. (New York Times, Sept 5)
     
  • The Real Estate Roundtable held an all-member Infrastructure Town Hall on Aug. 12 to discuss the Senate infrastructure bill, what lay ahead in the House, and the potential impact on commercial real estate. (Roundtable Weekly, Aug. 13)   

October – Federal Government Funding and Debt Ceiling 

Treasury logo on flag background

 

  • Funding for the federal government expires Oct. 1 unless an FY22 appropriations bill is enacted. Congress is expected to pass a stopgap spending bill – known as a Continuing Resolution (CR) – that would fund agencies at current levels to avoid a partial government shutdown. 
  • The CR could also include a measure to suspend or raise the national debt ceiling, which would require at least 10 Senate Republican votes to pass under regular order. 
  • Democratic leaders plan to pursue a bipartisan vote to waive the debt limit. (Reuters and PoliticoPro, Sept. 8) However, 46 Senate Republicans pledged in an August 10 letter that they “will not vote to increase the debt ceiling, whether that increase comes through a stand-alone bill, a continuing resolution, or any other vehicle.” (Bloomberg and The Wall Street Journal, Aug. 10) 
  • Congress must address the national debt ceiling by October, according to a Sept. 8 letter from Treasury Secretary Janet Yellen to congressional leaders. 

The Roundtable will discuss how all these issues impact CRE and the national economy during its Fall Meeting on Oct. 5 in Washington, DC (Roundtable-level members only). 

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Policymakers Remain Far Apart on Bipartisan Infrastructure Package; Senate Ruling Limits Reconciliation as Fast-Track Option

Posted on by Trey Jackson

President Biden and Sen. Capito

Policymakers this week remained far apart on the scope and cost of a possible bipartisan infrastructure package, as President Biden floated a 15% minimum corporate tax to partially fund his pared-down proposal. Meanwhile, a recent Senate Parliamentarian ruling would limit the use of a fast-track budget process called “reconciliation” that could allow Democrats to bypass Republicans and pass legislation on a party-line vote. (Washington Post, June 3, The Hill and New York magazine, June 2)  

[Photo above: President Biden discusses infrastructure with Sen. Shelley Moore Capito (R-WV)]

Seeking New Spending

  • President Biden recently reduced his original infrastructure package cost from $2.3 trillion to $1.7 trillion – and is now looking for at least $1 trillion in new spending from Republicans on infrastructure. Biden this week proposed raising these funds partially through a new 15% minimum corporate tax, which would replace his initial proposal to raise the corporate income rate to 28% from 21%. (BGov and New York Times, June 3)
  • Sen. Shelley Moore Capito (R-WV), who is leading GOP lawmakers in negotiations with the White House, last week counteroffered with $928 billion – although it limits new spending to $257 billion for traditional “hard” infrastructure such as roads, bridges and other public works. Republicans proposed the remaining $671 billion come from repurposed funding previously passed as part of the American Rescue Plan Act’s Covid-19 relief effort. Democrats have rejected repurposing of funds. (Roundtable Weekly, May 28 and AP, May 27)
  • The U.S. Conference of Mayors, National League of Cities and National Association of Counties recently expressed their “adamant opposition to any proposal that would detrimentally recoup and repurpose funds allocated to local governments” from coronavirus relief funds. (NLC news release, June 1 and joint letter, May 27)
  • The coalition’s joint letter to congressional leadership, stated, “Local governments are using these critical recovery funds to invest in public safety, vaccine distribution, housing and rental assistance, local economic support, economic and workforce development, broadband expansion, social safety-net services, hospitality and tourism development, and hazard pay for public employees.”

Time is Short

The White House with Washington Monument

  • White House Press Secretary Jen Psaki this week said, “Patience is not unending, and [President Biden’s] wants to make progress. His only line in the sand is inaction. He wants to sign a bill into law this summer.” (White House Press Briefing, June 2)
  • The No. 3-ranked House Democrat, Rep. Jim Clyburn of South Carolina, yesterday said time is short to complete negotiations on a bipartisan package. “I don’t think we should run the risk of not getting something done because the other side is not cooperating.” (Bloomberg’s Balance of Tower, June 3)
  • Sen. Ben Cardin (D-Md.) on Thursday added that Democrats would soon take actions to use the budget reconciliation process to bypass the Senate’s 60-vote requirement to pass legislation and push through a bill on a party line vote.  Cardin said that Democrats are “going as far as we can with Republicans and not delay[ing] it beyond this work period without seeing some action.” (Politico, June 3)
  • Senate Majority Leader Charles Schumer (D-NY) said last week that he wants to move forward on an infrastructure bill in July, whether it is bipartisan or not. (The Hill, May 25)

Limits on Reconciliation

Senate side - Capitol Building

  • The Democrats’ alternative plan to use reconciliation to bypass Republican opposition on infrastructure legislation may be slowed by a recent Senate Parlimentarian ruling. Congressional Democrats used reconciliation in March to pass the administration’s $1.9 trillion pandemic relief package. (Roundtable Weekly, March 12)
  • Senate Parliamentarian Elizabeth MacDonough’s four-page opinion, issued to Senate staff on May 28, stated, “overuse and over-reliance on a hyper-fast track procedure in the ordinarily deliberative Senate … will change the culture of the institution to the detriment of the committee and amendment processes and the rights of all Senators.” (CQ, June 2)
  • The new guidance adds that lawmakers intended the reconciliation provision to be used only “in extraordinary circumstances and not for things that should have been or could have been foreseen and handled” in a regular budget resolution. 

The ruling suggests that Democrats will be restricted to one additional opportunity this year to use reconciliation to pass a filibuster-proof legislative package.  (Roll Call, June 2 and The Hill, June 4)

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Biden Proposes $1.8 Trillion “American Families Plan” Funded by Tax Increases

Posted on by Trey Jackson

Biden Joint Address to Congress

President Biden on April 28 outlined a $1.8 trillion American Families Plan that would fund an expansion of government support for child care, education, paid family leave and other “human infrastructure” initiatives through new tax increases. [Full text of the President’s prepared remarks and CNBC, April 29)

  • Biden proposes to pay for The American Families Plan with tax increases on upper-income taxpayers and new tax enforcement initiatives, including significantly higher tax rates on capital investment. Collectively, the Administration claims these changes would raise $1.5 trillion over 10 years. (American Families Plan Fact Sheet)

Roundtable Response

Jeff DeBoer RER Meeting

  • Real Estate Roundtable President and CEO Jeffrey DeBoer, above, said,  “President Biden’s American Jobs Plan and American Families Plan offer very credible initiatives to address some of our nation’s most pressing needs—a modernized infrastructure, a more comprehensive approach to climate-related matters, as well as increased investments in housing, education and child care.”
  • DeBoer also warned, “As policymakers consider the options to raise this needed revenue, we strongly urge that the focus be on broad-based tax increases that do minimal damage to job creation, risk taking and entrepreneurial activity. Unfortunately, particularly when considered in total, many of the tax proposals accompanying the American Jobs Plan or American Families Plan would reduce economic activity, impede job growth, and diminish opportunities for startup businesses and those less advantaged. The current law in these areas may be in need of review and reform, but repealing these incentives is simply not wise.” (Full Roundtable statement)

Specific Tax Increases

Oval Office Meeting

  • The tax proposals in the American Families Plan include increasing the top tax rate on ordinary income from 37 percent to 39.6 percent, which would impact single filers with income above about $453,000 and married couples with income above approximately $509,000, a White House official said. (The Hill, April 29)
  • Raising the tax rate on capital gains and dividends from 20 percent to 39.6 percent for households making over $1 million. (Tax Foundation, April 23)
  • Restricting gain deferred through like-kind exchanges to no more than $500,000 per-year. (Wall Street Journal, April 28)
  • Stepped-up basis: Taxing unrealized gains in excess of $1 million ($2.5 million per couple) at death, but with an exception for family-owned businesses passed on to heirs who continue to run the business. (American Families Plan Fact Sheet)
  • Reforming the current tax treatment of carried interest: (GlobeSt, April 29)
  • Expanding the 3.8% Medicare tax on earnings and net investment income to apply to additional activities currently outside the scope of the tax.
  • Permanently extending the 2017 Tax Cuts and Jobs Act (TCJA) provision, section 461(l), that restricts the deductibility of active pass-through business losses to $250,000 for an individual or $500,000 for a married couple.
  • Notably absent from the American Families Plan are any proposals related to reinstating the deduction for state and local taxes (SALT).

What’s Next

  • Several Senate Democrats have signaled they do not support all the tax increase proposals. Sen. Sen. Joe Manchin (D-WV), a pivotal centrist lawmaker, along with Sens. Mark Warner (D-VA) and Bob Menendez (D-NJ), members of the Senate Finance Committee, voiced concerns that higher capital gains rates could slow economic growth, according to the Wall Street Journal. 
  • Menendez commented on the proposed increase, “For me, it is what you’re doing, the totality of the package, and how does it affect the ability of growth to continue to take place. That’s how I’m judging it. Right now it seems like a rather high rate to me.”

President Biden plans to host his first meeting since taking office with House and Senate leaders from both parties on May 12, according to a White House official. (BGov, April 29)

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President Biden Signals Flexibility on Infrastructure Plan as GOP Senators Craft Alternative Approach; SALT Repeal May Influence Negotiations

Posted on by Trey Jackson

Biden White House Meeting

President Joe Biden this week met with a bipartisan group of policymakers about the details of his multitrillion infrastructure proposal as a bloc of moderate GOP senators stated they are developing a far less expensive counterproposal that would pare back the definition of what comprises “infrastructure” and fund it with unspecified user fees. (Washington Post, April 14)

  • Sen. Mitt Romney (R-UT), who is involved in talks about an alternative infrastructure plan, said, “The pay-for ought to come from the people who are using it,” suggesting that a transportation mileage charge could be applied to electric vehicle drivers. “Clearly by bringing in additional revenue from actual miles driven is going to create some additional revenue,” Romney said.  (Politico Pro, April 14)
  • Rep. Donald  Payne, Jr., chairman of the House Transportation Subcommittee on Railroads, attended the White House meeting where President Biden said he was “prepared to negotiate” on his new infrastructure-focused economic plan – and expressed support for the Gateway project, a major rail tunnel project between New York and New Jersey. (BGov, April 12)

SALT Caucus

SALT Caucus

  • An effort by members of Congress to repeal the cap on state and local tax deductions (SALT) is adding to the complexity of negotiations over the White House infrastructure proposal. Yesterday, a bipartisan congressional “SALT caucus” was launched to push for the full repeal of the $10,000 limit on state and local deductions, which was enacted as part of the 2017 Republican tax overhaul. (Bloomberg, April 15)
  • It is unclear how many members of the bipartisan caucus would link their support for Biden’s infrastructure proposal, and its increased corporate taxes, to action on the SALT cap.  Reps. Josh Gottheimer (D-NJ) and Tom Suozzi (D-NY), who co-chair the SALT caucus, said they “will not accept any changes to the tax code that do not restore the SALT deduction.” (CNBC, April 15)
  • Additionally, several New York Democrats sent a letter to House leadership on April 13 urging for a full repeal. “We will not hesitate to oppose any tax legislation that does not fully restore the SALT deduction,” according to the letter. (BGov and Wall Street Journal, April 13)

Energy-Efficient Buildings

  • The White House’s infrastructure plan and the importance of energy efficient buildings was noted in a recent New York Times interview with White House National Economic Council Director Brian Deese.
  • Deese stated during the April 9 Ezra Klein Show (podcast), “… it’s been true for multiple years that energy efficiency upgrades in commercial buildings should just happen, and they’re not.  The built environment and industry get less attention but are extraordinary opportunities. And this [infrastructure] plan has a very significant investment in upgrading buildings and making them more energy efficient.”
  • He added, “The jobs doing that happen all around the country. They’re construction jobs, building trades. A lot of it is actually high-value investment, where providing an incentive could actually unlock a bunch of private capital to invest, particularly in the commercial building space.”
  • Deese is scheduled to participate in next week’s Roundtable Spring Meeting, along with U.S. Department of Transportation Secretary Pete Buttigieg. The remote discussions will be available on The Roundtable’s YouTube channel by April 21.

The Roundtable is part of the Build by the 4th coalition, led by the U.S. Chamber of Commerce, which encourages the Biden Administration and Congress to pass a comprehensive infrastructure deal by Independence Day 2021.

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Senate Advances Pandemic Relief Package as President Biden Pushes Infrastructure Plan

Posted on by Trey Jackson

White House with Washington monument in background

Senate Democrats this week advanced an amended, $1.9 trillion pandemic relief package that is expected to pass on a party-line vote – then sent back to the House for final passage before current unemployment benefits expire March 14. (Politico, March 4 and Congress.gov, actions on H.R. 1319)  

  • President Biden, who has championed the COVID-19 legislation, agreed to changes in the package such as restrictions on the use of $350 billion in state and local funding to solidify Democratic support in the 50-50 Senate. (BGov, March 4 and text of the amended Senate bill)
  • CQ reported that financial allocations changes for states and local governments require federal assistance be used for specific purposes, including: 
    • Aid to households, small businesses or nonprofits, or aid to “impacted” industries like tourism, hospitality and travel;
    • Funding government services that reduced due to the pandemic-related hit to tax revenue;
    • “Necessary investments” in water, sewer, or broadband infrastructure. 
  • Senate Majority Leader Chuck Schumer (D-NY) said yesterday, “No matter how long it takes, the Senate is going to stay in session to finish the bill, this week.” (Politico, March 4).
  • Meanwhile, the White House push for a massive infrastructure bill was discussed on March 4 in a meeting with President Biden, Transportation Secretary Pete Buttigieg and a bipartisan group of House members led by Rep. Peter A. DeFazio (D-OR), chairman of the House Transportation Committee.  (Bloomberg, March 4)
  • Biden remarked at the start of the meeting, “We’re going to talk about infrastructure and American competitiveness and what we’re going to do to make sure that we once again lead the world across the board on infrastructure. It not only creates jobs but it makes us a helluva lot more competitive around the world.”  (White House, March 4)
  • The White House infrastructure plan is expected to emphasize climate change, but legislation has not been unveiled nor has its cost or methods to pay for the initiative. (Wall Street Journal, March 4)
  • The critical need for investing in modern and sustainable infrastructure was also the focus of a Feb. 11 White House meeting between Biden, Vice President Kamala Harris, Buttigieg and a bipartisan group of senators from the Environment and Public Works Committee. (Roundtable Weekly, Feb. 12)
  • In a December 16, 2020 letter, The Roundtable and 12 national real estate organizations provided detailed recommendationsto then President-elect Biden and Vice President-elect Harris that included infrastructure funding and modernization as engines to drive recovery and job growth from the economic fallout of the COVID-19 pandemic.

The Roundtable is part of Build by the 4th coalition led by U.S. Chamber of Commerce, which encourages the Biden Administration and the new Congress to pass a comprehensive infrastructure deal by Independence Day 2021. 

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Senate Weighs Timelines for COVID-19 Relief Bill and Impeachment Trial; President Biden Signs Climate Executive Order

Posted on by Trey Jackson

U.S. Capitol evening

Senate policymakers this week began to consider President Joe Biden’s $1.9 trillion COVID relief package proposal after Congressional leaders agreed to delay opening arguments in the impeachment trial of Donald Trump until Feb. 9. (Reuters, Jan. 25 and PBS, Jan. 26)

  • As an alternative to a trial, Sen. Tim Kaine (D-VA) yesterday said he will introduce a resolution to censure the former president, citing the 14th amendment to bar Trump from holding future office. At least 10 Senate Republicans would have to vote for censure to move the resolution forward, even though the GOP has shown little support for conviction in the impeachment proceeding. (The Hill and The Washington Post, Jan. 28)
  • With the impeachment trial date set, Senate Majority Leader Chuck Schumer (D-NY) said he is aiming to pass a pandemic aid package by mid-March, when unemployment benefits will expire. (Forbes, Jan. 25, 2021 and Roundtable Weekly, Dec. 22, 2020)
  • Schumer and House Speaker Nancy Pelosi (D-CA) also said this week that if Republicans continue to reject President Biden’s $1.9 trillion pandemic relief proposal, a Democrat-only pandemic stimulus plan will move forward next week using budget reconciliation – a process that requires a simple majority vote in the Senate, thereby avoiding a filibuster. Vice President Kamala Harris could break a tie vote in the 50-50 Senate. (The Hill, Jan. 29)
  • President Biden said Monday that he is open to negotiating a bipartisan approach to the next pandemic aid package with Congress, but stated “time is of the essence” and that “[t]he decision to use reconciliation will depend on how these negotiations go.” (Bloomberg and CNBC, Jan. 25) 
  • Sen. Rob Portman (R-OH) – a centrist Republican who recently announced he will not seek reelection in 2022 due to partisan gridlock – said the use of reconciliation “would exacerbate the partisanship around here; it would make it more difficult to find common ground.” (Wall Street Journal, Jan. 26)

Presidential Executive Order on Climate

  • In related policy news, President Biden issued an executive order on Wednesday to “tackl[e] the climate crisis at home and abroad.” (Axios, Jan. 28, New York Times, Jan. 27).  The order aims for the U.S. to achieve a “net-zero emissions” economy by 2050.
  • The climate order directs federal agencies to determine the U.S.’s carbon reduction target under the terms of the Paris climate agreement, and maximize opportunities to “create well-paying union jobs to build a modern and sustainable infrastructure.”

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Joe Biden Takes Oath as 46th President, Signs Executive Orders on Pandemic Response, Evictions, Climate, Immigration and Racial Equity

Posted on by Trey Jackson

U.S. Capitol Biden-Harris Inauguration

On January 20, the peaceful inauguration of Joe Biden as the 46th president of the United States and Kamala Harris as vice president took place on the steps of the Capitol, where two weeks prior a violent mob attempted to overturn the electoral process.

  • President Biden in his inaugural address emphasized themes of national struggle and unity. He stated, “We must end this uncivil war that pits red against blue, rural versus urban, conservative versus liberal. To overcome these challenges – to restore the soul and to secure the future of America – requires more than words. It requires that most elusive of things in a democracy: Unity.”

  • Vice President Harris – who is the highest-ranking woman of color in U.S. history – stated during a post-inaugural event, “This, too, is American Aspiration. This is what President Joe Biden has called upon us to summon now. The courage to see beyond crisis. To do what is hard. To do what is good. To unite.” (New York Times, Jan. 21)

Coronavirus Response

The new administration’s top priority is to develop and manage a coordinated, national public health and economic response to the COVID-19 pandemic. On its first two days in office it issued:

Additional “Day One” Orders

President Biden signs Executive Orders on

In addition to addressing COVID-19, the Biden Administration moved swiftly on “Day One” with 17 Executive Orders (EOs) covering a range of issues.  (New York Times and CQ, Jan. 20) These actions include: 

  • Extending the federal residential eviction moratorium (scheduled to expire on January 31) through the end of March – with a request to HUD and other agencies to allow forbearance on payments of federally-guaranteed mortgages; 
  • “Restoring science” and “tackling the climate crisis,” such as by rejoining the Paris Climate Agreement, and directing the EPA and the Energy Department to reassess Trump-era rules on building energy codes as well as standards for appliance and motor vehicle fuel efficiency;
  • Advancing racial equity and support for underserved communities; and
  • Restoring protection for “Dreamers” under the Deferred Action for Childhood Arrivals (DACA) program, ending the ban on travel to the U.S. from primarily Muslim countries, and other immigration-related matters. The Roundtable joined an amicus brief to the U.S. Supreme Court last year urging that DACA protections should be re-instated for immigrants brought to the United States as children. (Roundtable Weekly, June 19, 2020 )
  • (Biden has also proposed a legislative immigration overhaul that would provide a path to citizenship for the undocumented, which has already been met with some GOP opposition and “underscore[s] that the measure faces an uphill fight in a Congress that Democrats control just narrowly.” (AP, Jan. 19).

References:

The Biden Administration’s initial actions and policy agenda will be a focus of The Roundtable’s Jan. 26-27 State of the Industry Meeting (held virtually).  Speakers will include:

  • Sen. Sherrod Brown (D-OH) – Chairman, Senate Banking, Housing and Urban Affairs Committee
  • Sen. Joe Manchin (D-WV) – Chairman. Senate Energy and Natural Resources Committee
  • Sen. Ron Wyden (D-OR) – Chairman, Senate Finance Committee
  • Dr. Scott Gottlieb – 23rd Commissioner of the U.S. Food and Drug Administration

  • Penny Pritzker – 38th Secretary of Commerce (2013-2017); Founder and Chairman of PSP Partners

The Roundtable will also unveil its 2021 National Policy Agenda publication soon, which will address policy issues in in the areas of tax, capital and credit, energy and climate, homeland security, and infrastructure and housing.

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President Trump Faces Second Impeachment Trial as President-elect Biden Proposes $1.9 Trillion Pandemic Aid Package

Posted on by Trey Jackson

House Democrats, joined by 10 Republicans, on Jan. 13 voted 232-197 to impeach President Trump for a historic second time on charges that he incited last week’s insurrection at the Capitol that left five people dead, including a Capitol Hill police officer. (NBC News and Fortune, Jan. 13)

  • No date has been set yet for Trump’s second impeachment trial in the Senate, although it could begin on the day of the inauguration of President-elect Biden and Vice President-elect Harris. The timing is uncertain as two new Democratic Senators from Georgia, Jon Ossoff and Raphael Warnock, await state electoral certification early next week. Vice President-elect Harris’s replacement—California Secretary of State Alex Padilla—is expected to be sworn in shortly after the inauguration.
  • Some Democrats want a later trial date to give the incoming Administration time to establish their policy agenda and work on immediate COVID-19 priorities. (Wall Street Journal, Jan. 14)   
  • “We are working with Republicans to try to find a path forward,” said a spokesperson for Sen. Chuck Schumer, who will become majority leader. (AP, Jan. 14)
  • As the Jan. 20 Biden-Harris inauguration approaches, 21,000 National Guard troops have been authorized for deployment to Washington, which is approximately three times the total number of American troops deployed in Iraq, Afghanistan, Somalia and Syria. Troops have not been stationed in the Capitol since the US Civil War in the 1860s. (Washington Post, Military Times, Jan. 14 and New York Times, Jan. 13)
  • The Roundtable’s Homeland Security Task Force and Real Estate Information Sharing and Analysis Center (RE-ISAC) has been working with groups who are preparing and planning for potential related protests which may occur in the District of Columbia and in State capitals across the United States. (Homeland Security Today, After the Capitol Riot, What Is Your State of Preparedness?, Jan. 14)
  • As the combined force strength of National Guard military personnel and federal and state law enforcement agencies continues to expand in Washington, DC, the attention is shifting to making sure that State capital complexes, government facilities (owned and leased) and adjacent properties are on alert, well-defended and are supporting this effort, as intelligence continues to be collected.

Biden’s “American Rescue Plan”

  • President-elect Biden last night proposed a $1.9 trillion pandemic aid package that may attract Senate Republican opposition over Democratic priorities, such as aid to state and local governments. (Bloomberg Law, Jan. 14)
  • The latest COVID-19 stimulus proposal—called the “American Rescue Plan”—would build on earlier relief packages and provide emergency measures to meet immediate health care and economic needs. The incoming Administration is expected to unveil a broader plan in February before Biden’s first appearance before a joint session of Congress that will focus on long-term goals such as infrastructure and climate change. (B-Gov and The Washington Post, Jan. 14)

A summary prepared by Brownstein Hyatt Farber Shreck (Jan. 14) describes Biden’s proposed American Rescue Plan as including: 

  • $350 billion for state and local governments
  • $160 billion in funding for a national program of vaccination, testing and other coronavirus containment efforts
  • $30 billion in rental and utility assistance for low- and moderate-income households, with an extension of the federal residential eviction moratorium (currently set to expire on Jan. 31) until Sept. 30, 2021
  • $1,400 per person stimulus checks for qualifying individuals (in addition to the $600 approved in December)
  • $400 per week in supplementary unemployment benefits through September
  • $130 billion to help schools reopen
  • $25 billion for childcare providers
  • $20 billion for hard-hit public transit agencies
  • $15 billion in directs grants to small businesses, and a $35 billion investment in state and local small business financing programs to leverage additional lending
  • The proposal would also raise the minimum wage to $15 an hour and expand food assistance, child tax credits, and medical and family leave. (Washington Post, Jan. 14)
  • House Speaker Nancy Pelosi (D-CA) and Senate Democratic leader Chuck Schumer (D-NY) on Jan. 14 supported Biden’s stimulus package proposal. “The emergency relief framework announced by the incoming Biden-Harris administration tonight is the right approach,” Pelosi and Schumer said in a joint statement. “We will get right to work to turn President-elect Biden’s vision into legislation that will pass both chambers and be signed into law.” (Reuters, Jan. 14)
  • Biden’s proposal follows the most recent COVID relief package that Congress passed before the holidays, part of omnibus legislation that funds federal operations through September 30, 2021. (Roundtable Weekly, Dec. 22, 2020)

SBA Reopens Paycheck Protection Program (PPP)

  • The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, will re-open the Paycheck Protection Program (PPP) loan portal today, Jan. 15, to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications. (SBA news release, Jan. 13)
  • The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.
  • SBA granted initial PPP access earlier in the week for lending in low-income and underserved communities, and to allow “second draw” loans for qualifying small businesses that received credit under earlier phases of the lending program. (Journal of Accountancy, Jan. 13)

The deadline for Second Draw PPP loan applications has been extended to March 31, 2021. (NexTech, Jan. 12 and SBA Interim final rule). Updated PPP Lender forms, guidance, and resources are available at www.sba.gov/ppp and www.treasury.gov/cares.

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Democratic Control of White House, Senate and House Ushers in New Policymaking Dynamic

Posted on by Trey Jackson

Washington DC wide shot image

The riot at the Capitol this week occurred during a momentous political power shift in Washington, as Congress certified the Electoral College’s votes confirming the incoming Biden-Harris Administration – and as the Jan. 5 Georgia runoff election determined the ruling party in the Senate.

  • The Georgia election, won by Democratic candidates Raphael Warnock and Jon Ossoff, gives Democrats a razor-thin edge as Vice President-elect Kamala Harris will be able to cast tie-breaking votes in the Senate after she is sworn in Jan. 20
  • The Democrats will control the White House, House and a Senate that will have no voting margin for defections. The 50-50 chamber will require close collaboration between Senate Democrats and the Biden Administration to advance legislative initiatives.
  • With Sen. Chuck Schumer (D-NY) as Majority Leader, moderate Democrats in the Senate will have a significant influence on advancing bills through committee and on final votes that Schumer allows to the Senate floor.
  • Yet Democrats who effectively now control the Senate will also assume chairmanships of committees that consider issues of importance to real estate. Among them are the tax-writing Senate Finance Committee, whose gavel will go to Sen. Ron Wyden (D-OR), the panel’s senior Democrat who served as chair six years ago.
  • Other new Senate committee chairs include:
    • Banking, Housing and Urban Affairs Committee Chair Sherrod Brown (D-OH)
    • Energy and Natural Resources Committee Chair Joe Manchin (D-WV)
    • Environment and Public Works Chair Tom Carper (D-DE)
    • Homeland Security and Governmental Affairs Gary Peters (D-MI)
  • More details related to Senate and House leadership positions and their respective committees can be found on JDSupra’s “Welcome to the 117th Congress” (Jan. 8).
  • Democrats are likely to advance additional COVID relief packages in close cooperation with the Biden Administration, including fiscal assistance for State and Local governments. Other policy issues expected to be addressed soon by Democrats include transportation and infrastructure funding.  
  • President-elect Joe Biden also said today, “I will introduce an immigration bill immediately” after he assumes office.  (B-Gov, Jan. 8)
  • The Roundtable and 12 national real estate organizations on Dec. 16 congratulated President-elect Joe Biden and Vice President-elect Kamala Harris on their historic election and submitted detailed policy recommendations to the incoming administration on COVID-19 relief, sustainability, housing, immigration, tax policy infrastructure, and other policy issue areas. (Roundtable Weekly, Dec. 18)
  • The industry letter acknowledges the many economic and social challenges confronting the country as the Biden Administration prepares to take office, including the national response to COVID-19. The letter and supporting policy memo were also sent to every congressional office on Capitol Hill.

The Roundtable plans to debut its 2021 Policy Agenda during its upcoming State of the Industry Meeting that begins Jan. 26.

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Government Funding Deadline Extended to Dec. 18 as Pandemic Relief Package Proposals Face “COVID Cliff”

Posted on by Trey Jackson

Architect of the Capitol

Congress this week extended government funding until Dec. 18 to avert a government shutdown and give bipartisan negotiators more time to finalize a pandemic relief bill, which remains at an impasse over business liability and state and local government aid provisions. President Trump is expected to approve the one-week spending bill before current funding expires tomorrow.  (CNBC, Dec. 11)

  • Policymakers engaged in intense pandemic aid negotiations also face the expiration of unemployment and housing benefits scheduled at the end of this month. This “Covid cliff” includes the Dec. 31 expiration of a national eviction moratorium by the Centers for Disease Control. (CNBC, Dec. 4 and The Hill, Dec. 9)
  • House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Mitch McConnell (R-KY) recently signaled their goal was to combine a 2021 fiscal year spending bill with pandemic relief as part of a massive “omnibus” bill this month before recessing. (Politico, Dec. 4)
  • McConnell this week backed a $916 billion GOP pandemic aid proposal released Dec. 8 by Treasury Secretary Steven Mnuchin, while Democratic leaders support a $908 billion proposal issued by a bipartisan group of lawmakers last week. (BGov, Dec. 10)
  • The bipartisan coalition on Dec. 9 released details on its $908 billion stimulus proposal that includes $25 billion for residential rental assistance, state and local aid, augmented unemployment insurance benefits, a scaled-down Paycheck Protection Program (PPP) – as well as money for vaccine development, supply, and testing and tracing programs. (Framework summary for details on the bipartisan Emergency COVID Relief Act of 2020, Dec. 9)
  • Although the dueling relief plans are close in total costs, significant policy differences over business liability and state and local government aid threaten the completion of negotiations. (Wall Street Journal, Dec. 9)
  • The bipartisan group reportedly agreed this week on a needs-based formula to distribute $160 billion in state and local aid, but will not release details until compromise language addressing liability is finalized. (CQ, Dec. 9 and BGov, Dec. 10)
  • Sen. Chris Coons (D-DE) on Dec. 9 said that emerging liability language may include a six-month moratorium on coronavirus-related lawsuits that would give states time to develop their own protections. An “affirmative defense” provision may also be included to counter excessive claims against institutions subject to lawsuits. (Roll Call, Dec. 9)

Pelosi yesterday suggested that discussions over the emergency legislation could now stretch beyond the holiday season. “If we need more time, then we take more time. But we have to have a bill and we cannot go home without it,” Pelosi said. “I would hope that it would honor the December 18th deadline … We’ve been here after Christmas, you know.” (Business Insider, Dec. 10)

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