Category: Policy Landscape

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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Policymakers Face Government Funding Deadline as Talks Renew on Pandemic Relief

Posted on by Trey Jackson

U.S. Capitol Dome with flag

House Speaker Nancy Pelosi (D-CA) today said that Senate Majority Leader Mitch McConnell (R-KY) agreed to aim for combining a pandemic relief package with government funding legislation in an “omnibus” bill that would prevent a partial shutdown later this month. (Politico, Dec. 4)

  • Pelosi referred to the goal for attaching a coronavirus relief measure to the must-pass spending bill, stating, “That would be a hope, because that is the vehicle leaving the station. We would want a big, strong vote.”
  • McConnell commented on his discussion with Pelosi, stating, “… we had a good conversation. I think we’re both interested in getting an outcome, both on the omnibus and on a coronavirus package.” (NPR, Dec. 4)
  • Negotiations over a COVID-19 stimulus package have been at an impasse for months – House Democrats passed a $2.2 trillion relief bill, Senate Republicans favored a $500 billion measure and the Trump administration offered a ceiling of $1.8 trillion. (Roundtable Weekly, Nov. 6)
  • Congressional leaders renewed discussion this week about pandemic relief after a bipartisan group of Senate and House members proposed a compromise $908 billion package that attracted the support of Pelosi and Senate Minority Leader Chuck Schumer (D-NY). (BGov, Dec. 3)   
  • The bipartisan stimulus proposal includes $25 billion for “rental assistance,” state and local aid, augmented unemployment insurance benefits, a revival of the Paycheck Protection Program (PPP) and other small business relief, as well as money for vaccine development, supply, and testing and tracing programs. (“What’s in the $908 Billion Bipartisan Stimulus Proposal?” by The Committee for a Responsible Federal Budget, Dec. 2) 
  • Pelosi also said, “There is momentum — there is momentum with the action that the senators and House members in a bipartisan way have taken.” (Politico, Dec. 4)
  • President-elect Biden issued a statement today supporting pandemic-related funding. “Any package passed in the lame duck session is not enough,” Biden said. “It’s just the start.” (The Hill, Dec. 4)

  • Government funding is currently scheduled to expire on Dec. 11. That deadline for combining fiscal 2021 appropriations and a coronavirus relief deal could lead to a one-week stopgap bill, giving lawmakers until Dec. 18 to pass a massive “omnibus” bill before Congress breaks for recess. (CQ, Dec. 4)    

Pelosi today said, “Don’t worry about a date. It will be in sufficient time for us to get it done. The sooner the better but not at the expense of the initiatives that we need to address in the bills.” She added, “We’ll take the time we need and we must get it done. We cannot leave without it.” (CQ and The Hill , Dec. 4)

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Treasury Requests Cessation of Several Fed Emergency Lending Programs and Return of Unused Funds; Senate Republicans Want Funds Repurposed for Pandemic Relief

Posted on by Trey Jackson

Treasury Secretary Steven Mnuchin sent a letter to Federal Reserve Chairman Jay Powell yesterday requesting that five emergency lending facilities, including the Main Street Lending Program (MSLP), should not be extended past their scheduled expiration on December 31, 2020. Mnuchin also requested the Fed to return unused Treasury loan funds from the programs for Congress to re-appropriate. (Treasury letter and The Wall Street Journal, Nov. 19)

  • The MSLP has the capacity to issue up to $600 billion in loans, yet has only completed approximately 400 loans totaling $3.7 billion. (Washington Post, Oct, 30)
  • The programs were created as part of the CARES Act coronavirus aid package passed in March, which included funding for all the Fed’s emergency lending facilities. (The Hill, Nov. 19)
  • Mnuchin’s Nov. 19 letter stated, “I am requesting that the Federal Reserve return the unused funds to the Treasury. This will allow Congress to re-appropriate $455 billion, consisting of $429 billion in excess Treasury funds for the Federal Reserve facilities and $26 billion in unused Treasury direct loan funds.”
  • The decision to end the lending facilities operations cannot be done unilaterally by Treasury; it would require cooperation by the Fed.
  • Chairman Powell issued a statement after markets closed yesterday that signaled disagreement. “The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy.” (Wall Street Journal, and CNBC interview with Mnuchin, Nov. 20)
  • Powell also said on Nov. 17 that “I don’t think it is time yet, or very soon” to close down the programs and that the Fed was “using all of our tools to support the recovery for as long as it takes until the job is well and truly done.” (Reuters, Nov. 17)
  • If the Trump administration decides not to extend the Fed programs, the new administration’s Treasury Department could reestablish them after Biden is inaugurated on Jan. 20. (Wall Street Journal, Nov. 10)

Pandemic Relief Package

Capitol side with sun and clouds

The request for the Fed to return unused funds from the lending programs comes as Congress remains at an impasse over costs for a pandemic relief package – the Trump administration offered a ceiling of $1.8 trillion, House Democrats passed a $2.2 trillion bill, and Senate Republicans favored a $500 billion measure. (Roundtable Weekly, Nov. 6)

  • Mnuchin and Senate Majority Leader Mitch McConnell (R-KY) today discussed a strategy for reviving talks between Republicans and Democrats over the stalled pandemic stimulus package. McConnell commented after the meeting about utilizing the unused Fed funds for a relief package, stating, “Congress should repurpose this money toward the kinds of urgent, important, and targeted relief measures that Republicans have been trying to pass for months, but which Democrats have repeatedly blocked with all-or-nothing demands.” (AP, Nov. 20)
  • President-elect Joe Biden on Monday urged Congress to advance the $2.2 trillion HEROES Act (H.R. 925) passed by the House. “Right now, Congress should come together and pass a COVID relief package like the HEROES Act that the House passed six months ago. Once we shut down the virus and deliver economic relief to workers and businesses, then we can start to build back better than before,” Biden said. (BGov, Nov. 16)
  • A report issued Wednesday by The Century Foundation shows that approximately 12 million Americans will lose unemployment insurance by the end of the year due to deadlines set by Congress early in the pandemic. (Washington Post and GlobeSt, “12M Workers Set to Lose Unemployment Benefits,” Nov. 19)

Lawmakers also face the added pressure of passing a government funding bill to avoid a Dec. 11 partial shutdown. Congress may choose to merge some COVID-19 aid measures into a sweeping multi-trillion-dollar omnibus funding bill during the lame-duck session to address both issues – or attempt to pass separate bills.

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Roundtable Holds Policy Town Hall; Post-election Congressional Session Faces Pandemic Relief Pressure, Government Funding Deadline

Posted on by Trey Jackson

Participants in RER Virtual Town Hall Nov9

The Real Estate Roundtable this week held a virtual “town hall” to discuss the election and its impact on national policy issues. Participating in the discussion were Sen. Michael Bennet (D-CO), Roundtable Chair Debra Cafaro (Chairman and CEO, Ventas, Inc.), Chair-Elect John Fish (Chairman and CEO, Suffolk), Roundtable President and CEO Jeffrey DeBoer and policy staff. The Nov. 9 discussion addressed a wide range of policy issues with nearly 200 Roundtable members in attendance. (Watch the discussion on The Roundtable’s YouTube Channel)

  • Cafaro said, “Our priorities are the COVID relief package that will come out of Congress, whether in the lame-duck session or later – a renters’ fund … (support) for state and local government relief … for the Paycheck Protection Program … funding for continued vaccine and testing and distribution … and liability protection of some type.”
  • Fish stated, “What is important for this COVID bill … if we don’t support the cities and towns and states, getting them back on their feet, the issues of lay-offs, restoring services and the impact on education … it is going to continue to spiral. If that happens, that is really detrimental.” He added those measures should be “coupled with PPP support because we need to put people back to work. They need payroll protection, the need jobs and that sense of security.” (Nov. 9 Roundtable Town Hall video)
  • Roundtable policy staff reviewed the lame-duck legislative outlook; tax and energy policy; and initiatives to create a Federal “business continuity” insurance program to mitigate future pandemic risk.
  • DeBoer also participated in a Nov. 12 NYU Shack Institute of Real Estate remote discussion on “Real Estate’s Priorities: Engaging with the New Administration” with Dr. Sam Chandan, PhD, Silverstein Chair of the Institute. (See Shack’s entire agenda)
  • “The narrow majorities in the House and Senate next Congress will place a premium on bipartisanship, and create hurdles for extreme legislation.  We expect a very active Congress. Large legislative agreements will be possible, but odds favor more targeted, constructive legislative initiatives. We look forward to offering our positive perspective on stabilizing the economy and moving forward,” DeBoer said. (Video with Sam Chandan)

Lame-Duck Agenda

DC Capitol Building

President-elect Joe Biden and Democratic leaders met this week about prospects for a bipartisan pandemic relief package during the post-election Congress, despite deadlocked negotiations over the cost and policy details of COVID-19 aid – and unlikely chances for compromise ahead of Georgia’s Senate elections on Jan. 5.

Both chambers of Congress return for their “lame-duck” session with a limited amount of working days before the new 117th Congress begins in January. The current Congress will need to pass a funding bill to keep the government open past Dec. 11 or face a shutdown – and negotiate a coronavirus stimulus package before several safety net programs expire in late December. It is possible the two measures could be combined in an “omnibus” bill. (BGov and Calculated Risk, Nov. 12)

  • Senate Majority Leader Mitch McConnell (R-KY) said this week that Congress should pass a limited stimulus bill before the end of the year, reiterating Senate Republicans’ opposition to a larger-scale package Democrats favor, signaling the current stalemate could extend into next year. (The Hill, Nov. 12 and Roundtable Weekly, Nov. 6)
  • Biden’s meeting with House Speaker Nancy Pelosi (D-CA) and Senate Minority Leader Charles Schumer (D-NY) yesterday addressed several outstanding issues facing Congress and the new administration.
  • According to a joint readout from Biden’s transition team and the congressional Democrats, “They discussed the urgent need for the Congress to come together in the lame duck session on a bipartisan basis to pass a bill that provides resources to fight the COVID-19 pandemic, relief for working families and small businesses, support for state and local governments trying to keep frontline workers on the payroll, expanded unemployment insurance, and affordable health care for millions of families.” (The Hill, Nov. 12)
  • Policymakers are reconvening amidst troubling signs affecting the economy, including a significant rise in COVID-19 cases, hospitalizations and deaths throughout the country as state and local governments consider reinstating lockdowns and school shutdowns. (Axios, Nov. 13)
  • Additionally, The Washington Post reported this week that regulators are increasingly concerned about US banks’ loan exposure to commercial real estate. The Nov. 11 article reports that if banks are forced to absorb losses on their $2 trillion in commercial real estate loans, the entire economy will suffer, according to Federal Reserve officials, economists and credit analysts.
  • “The Federal Deposit Insurance Corp. (FDIC) regards 356 banks as ‘concentrated’ in commercial real estate, based upon criteria such as the ratio of their CRE loans to their capital base and the pace of loan growth over the past three years,” according to the article.

Eric Rosengren, the president of the Federal Reserve Bank of Boston, said in a September speech, “I am especially worried about a second shoe dropping that will particularly affect small and medium-sized banks, which provide a large share of commercial real estate loans and small-business loans. A curtailment of credit resulting from such problems has caused serious head winds to recoveries in the past and may be a serious problem going forward.” (Washington Post, Nov. 11)

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Election Results Usher In Uncertain Prospects for Pandemic Relief and Funding Omnibus

Posted on by Trey Jackson

White-House-475w-edit

Ballot counting in the presidential election continued for the fourth day this week as former Vice President Joe Biden made gains against President Trump in key battleground states. Control of the Senate balances on the results of undecided races in Alaska and North Carolina – and on both Senate seats in Georgia that will face run-off elections on Jan. 5.

  • The Real Estate Roundtable will hold a membership-only town hall discussion on Monday, Nov. 9 from 5-6pm EST to discuss the policy implications of the elections with Roundtable staff, elected leaders and special guests. 
  • Electoral uncertainty will influence Congress on its return to Washington next week for a “lame-duck session,” which will include consideration of a pandemic relief package and must-pass legislation to keep the government open past Dec. 11. (BGov, Nov. 6 and Roundtable Weekly, Oct. 30)
  • House Speaker Nancy Pelosi (D-CA) this morning called for Republicans to re-enter negotiations for COVID-19 relief as Senate Majority Leader Mitch McConnell on Wednesday said Congress should pass a new economic-relief package this year. (Politico and Wall Street Journal, Nov. 6)
  • McConnell said, “We need another rescue package. Hopefully the partisan passions that prevented us from doing another rescue package will subside with the election. We need to do it, and I think we need to do it before the end of the year.”
  • Senate Whip John Thune (R-SD), who is number 2 in the chamber’s leadership, said on Oct. 25 that if Democrats prevail in the presidential election, a smaller stimulus bill could be pursued in the lame-duck session, followed by another package in the new year. (BGov, Oct 27)
  • A major impediment in the negotiations over pandemic aid is cost, as the Trump administration has offered a ceiling of $1.8 trillion, House Democrats passed a $2.2 trillion bill, and Senate Republicans favored a $500 billion measure. (Wall Street Journal, Oct.9 / AP, Oct. 1 / USA Today, Oct 21)
  • The tension surrounding the presidential election results adds to the uncertainty about whether President Trump will negotiate and seek to influence a Senate GOP bill addressing COVID-19 relief during the lame-duck session.
  • White House economic adviser Larry Kudlow today said the administration remains open to negotiations.  “Sen. McConnell and for that matter President Trump, and [Treasury Secretary Steven Mnuchin] and I and the others … we would like to negotiate a package. It would still be a targeted package to specific areas. We’re not interested in two or three trillion dollars,” Kudlow said. (CQ, Nov. 6)

Lawmakers during the lame-duck may choose to merge some COVID-19 aid measures into a sweeping multi-trillion-dollar omnibus bill to avoid a partial government shutdown on Dec. 11, when funding is set to expire.  Additionally, many temporary financial safety net programs are set to expire on Dec. 31. (Marketwatch, Oct. 21 and RollCall , Oct. 28)

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Stopgap Funding To Keep Government Open Until Dec. 11; House Democrats Pass Revised COVID-19 Stimulus Bill as Pandemic Relief Negotiations Continue

Posted on by Trey Jackson

Capitol Dome Dusk

A stopgap measure to fund the government until Dec. 11 at current spending levels passed the Senate Wednesday and was signed by President Trump early Thursday morning, narrowly avoiding an Oct. 1 government shutdown before the election.  (Reuters, Sept. 30 and Bloomberg, Oct. 1)

  • The “Continuing Resolution,” which passed the House last week, includes short-term funding extensions (with no policy changes) for surface transportation funding, the National Flood Insurance Program, and the EB-5 Regional Center Program.  (Rountable Weekly, Sept. 25, Text of H.R. 8337 and Section-by-section summary of the legislation)
  • As the government operations funding bill advanced this week, House Speaker Nancy Pelosi (D-CA) met face-to-face with Treasury Secretary Steven Mnuchin about an additional COVID-19 relief package for the first time since August.
  • Disagreements between Democrats and Republicans continued over the cost of a relief package, leading House Democrats Thursday night to pass a largely symbolic $2.2 trillion COVID-19 relief bill by a narrow 214-207 vote.  Eighteen Democrats voted against the measure, which is a scaled-down version of the $3 trillion HEROES Act passed by the House in May. The Senate is unlikely to consider the package.  (Forbes and NBC News, Oct. 1)

President Donald Trump comments in WH driveway

  • President Trump’s positive test for the coronavirus today adds great uncertainty to the political landscape and “changes the dynamic” of the pandemic relief talks, according to Pelosi.  “We always have to find a path, that is our responsibility to do so, and I believe that we will,” she said.  (Washington Post, Oct 2)
  • The White House has seemed willing to engage House Democrats in hopes of a deal, yet attracting enough support from Senate Republicans to pass another relief package over $1 trillion is a significant challenge. 
  • Senate Finance Committee Chairman Chuck Grassley (R-IA) yesterday said, “There’s a real revulsion among Republicans to going above $1 trillion and even $1trillion is real difficult.”  (CNN, Sept. 30)
  • Another issue in the negotiations remains Senate Majority Leader Mitch McConnell’s (R-KY) insistence on a liability shield for businesses that are concerned about unlimited COVID-related lawsuits after reopening.  McConnell said yesterday, “I’d like to see another rescue package. We’ve been trying for months to get there. I wish them well.”  (AP, Oct. 1)

House lawmakers will depart Washington today until after the election – unless they are summoned back to vote on a COVID-19 legislative package deal.  The Senate is scheduled to remain in session next week as confirmation hearings begin Oct. 12 for Judge Amy Coney Barrett, the President’s nominee for the US Supreme Court.

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House Approves Government Funding Until Dec. 11 and Passes Comprehensive Energy Package

Posted on by Trey Jackson

Capitol Building Dusk

The House of Representatives on Tuesday night passed a bipartisan Continuing Resolution (CR) by a vote of 359-57 to extend federal government funding through December 11 and avoid a government shutdown at the end of the month.  (Text of H.R. 8337 and Section-by-section summary of the legislation)

  • The CR includes short-term funding extensions (with no policy changes) for surface transportation funding, the National Flood Insurance Program, and the EB-5 Regional Center Program.
  • The Senate is expected to pass the CR next week and send it to President Trump for his signature before FY’2021 starts on October 1, 2020. 

Energy Package Passes

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  • The House yesterday also passed a comprehensive energy package (H.R.4447) that includes sections on building energy codes, federal energy data regarding commercial buildings, and grant programs for underserved communities and green infrastructure.  The measure passed with mostly Democratic support by a 220-185 vote.  (CQ, Sept. 24)
  • One of the major goals of the legislative package is to reduce carbon dioxide emissions by 80% by 2050. (BGov, Sept. 16)
  • The Clean Economy and Jobs Innovation Act includes a section – strongly supported by The Roundtable – that would require the U.S. Environmental Protection Agency (EPA) and the U.S. Energy Information Administration (EIA) to report to Congress through a “coordination agreement” regarding each agency’s separate collection of data regarding commercial building energy consumption.
  • The House bill also includes Roundtable-backed provisions that would bring greater transparency to how the U.S. Department of Energy provides federal recommendations to develop building energy codes, which state and local governments may ultimately adopt through a long-established process. (Roundtable Weekly, June 19, 2019)

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  • The White House on Sept. 21 stated its opposition to H.R. 4447.  Among the reasons for its veto threat, the Administration believes that the bill sets “rigid targets” on Federal buildings to reduce water and energy consumption, and is concerned that State and local governments might establish building codes “not grounded in available technologies.”
  • In the Senate, Energy Committee Chair Lisa Murkowski (R-AL) hopes to reintroduce bipartisan energy legislation (S. 2657) next week.  Sen. Joe Manchin (D-WV), the Senate Energy Committee’s ranking member and co-sponsor of S. 2657, said they are working through issues to overcome an impasse on the building energy codes section. (BGov, Sept. 24)

If the Senate passes its bill, a “conference” would be convened – perhaps during the Lame Duck Congressional session after Election Day – for House and Senate committee leaders to reconcile any differences between their respective packages.

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