Category: Policy Landscape

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)

#  #  # 

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.

#  #  # 

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)

#  #  #

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

Posted on by Trey Jackson

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)

#  #  #

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.

#  #  # 

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

skyline-chicago-night-x475w

  • 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)

White-House-475w-edit

  • 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.

#  #  # 

 

House Vote on Stopgap Funding Bill Expected Next Week; White House Signals Possible Compromise on Pandemic Relief Package

Posted on by Trey Jackson

Capitol Dome Stormy weather

Congressional policymakers struggled today to finalize a bipartisan spending bill to fund the government past September 30 and avoid a shutdown.  House and Senate lawmakers disagree on when the temporary funding would expire – Republicans want the stopgap to end on Dec. 18 while Democrats are pushing for Feb. 26.  (RollCall, Sept. 14 and Politico, Sept. 18)

  • House Majority Leader Steny Hoyer (D-MD) stated on September 15 that a vote on the continuing resolution (CR) would be held sometime next week.  He added the CR will include language to extend the authorization for surface transportation and the National Flood Insurance Program.  “I am going to bring it to the floor early next week and hope that the Senate passes it either later next week or the first part of the following week,” Hoyer said. (BGov, Sept. 18)

COVID-19 Package Negotiations

Congressional leaders remained at an impasse this week on another coronavirus stimulus package, although the Trump Administration signaled compromise is possible.  Negotiations between Democrats and White House officials stalled in August.  (Roundtable Weekly, Aug. 4)

  • GOP lawmakers initially proposed a $1 trillion coronavirus stimulus proposal in July.  Last week, Senate Republicans attempted to advance a “skinny” COVID-19 aid bill for approximately $500 billion less that was blocked by Democrats. (Roundtable Weekly, Sept. 11).
  • Democrats are currently advocating a package of at least $2.2 trillion following passage of the $3.4 trillion HEROES Act by the House of Representatives in May.  (Axios, Sept. 10)
  • Speaker Nancy Pelosi (D-CA) said on Tuesday that the House would remain in session until an agreement is reached and Hoyer clarified that lawmakers would be on call to return to the Capitol on short notice in the event a deal is reached. (BGov, Sept. 15)
  • After a compromise $1.5 trillion pandemic aid proposal from the bipartisan House Problem Solvers Caucus was rejected on Tuesday by congressional Democrats and Republicans, the White House signaled the following day it was open to further negotiations.  (New York Times, Sept 15 and Vox, Sept. 16)
  • President Trump tweeted on Sept 16, “Go for the much higher numbers, Republicans, it all comes back to the USA anyway (one way or another!).”  White House Chief of Staff Mark Meadows added there was support for more aid to state and local governments and that the Administration would be willing to consider a $1.5 trillion package.  (CNBC, Sept 16.

Schumer and Pelosi joint statement

  • Speaker Pelosi and Senate Minority Leader Chuck Schumer (D-NY) said in a joint statement after Trump’s tweet, “We look forward to hearing from the President’s negotiators that they will finally meet us halfway with a bill that is equal to the massive health and economic crises gripping our nation.”
  • Treasury Secretary Steven Mnuchin said earlier this month that the next stimulus bill could be closer to $1.5 trillion.  Larry Kudlow, director of the White House National Economic Council, said yesterday in response to a question about a $1.5 trillion package: “I would say that’s in the range of plausibility.”  (Wall Street Journal, Sept. 18)
  • Senate Finance Committee Chairman Chuck Grassley (R-IA) yesterday told Bloomberg TV,  “The White House has been making some statements here recently that would never get hardly any Republicans in the United States Senate.  So this used to be the White House versus Pelosi up until about now.  Now the president’s coming in and saying ‘we can maybe go to $1.5 trillion.’ He better be careful of that because I don’t think that bill could get through the United States Senate.”
  • Today, Pelosi told Bloomberg Television that Democrats remain committed to a $2.2 trillion relief package but indicated they may include aid for “airlines, transportation in other forms, restaurants, retail, issues like that” in a relief  package.  (Transcript of Pelosi Interview on Bloomberg’s Balance of Power with David Westin, Sept. 18)

The need for policymakers to produce a pandemic aid package before the November elections will be a focus of discussions during The Roundtable’s Fall Meeting on Sept. 22.  Confirmed speakers include Senate Majority Leader Mitch McConnell (R-KY) and House Financial Services Committee Member Steve Stivers (R-OH).

#  #  # 

Senate Democrats Block Republicans’ COVID-19 Relief Package as Sept 30 Deadline Looms to Fund the Federal Government

Posted on by Trey Jackson

Capitol Building Dusk

Senate Democrats yesterday blocked Republicans’ attempt to advance a scaled-back COVID-19 relief package. The 52-47 procedural vote, mostly along party lines, did not meet the 60-vote threshold to pass, diminishing the possibility that Congress will enact another pandemic recovery measure before the November elections.  (AP, Sept. 10 and Summary of GOP bill)

  • The Republican “skinny” bill (S. 178) proposed this week is approximately $500 billion less than the GOP’s $1 trillion July coronavirus stimulus proposal.  Democrats are currently advocating a package of at least $2.2 trillion following passage of the $3.4 trillion HEROES Act by the House of Representatives in May. (Axios, Sept. 10)
  • Previously, Congress passed coronavirus relief in March with the $2 trillion CARES Act, which increased unemployment benefits until July 31.  Prospects that unemployed Americans may receive an additional $1,200 stimulus check remain uncertain.  (Roundtable Weekly, August 14 and C/Net, Sept. 10)
  • Treasury Secretary Steven Mnuchin on Sunday stated the Trump Administration favored another COVID-19 aid package.  “We want to help businesses that are particularly impacted by this, and we’ll continue to work on proposed new legislation,” Mnuchin told Fox News.  (Real Clear Politics, Sept. 6)
  • Senate Minority Leader Charles E. Schumer (D-NY) yesterday said Republicans “may yet be forced to come back to the table because COVID is the major issue that’s facing the American people.”  (AP, Sept. 10)
  • Congressional negotiations on another round of pandemic stimulus between Democrats and White House officials stalled in August.  President Trump then signed four executive orders aimed at providing unemployment aid, eviction protections, student loan relief and payroll tax deferments.  (Roundtable Weekly, August 14)
  • One executive order authorized an additional $300 per week to unemployed beneficiaries from disaster relief funds. The Federal Emergency Management Agency recently announced those funds are near depletion and the program is closed to new applications. (BGov, Sept. 10)
  • White House officials are considering additional unilateral actions to provide targeted relief, according to The Washington Post.  Stephen Moore, an economic adviser to the White House, said, “They’re trying to figure out what they can do legally, what authorities they have, and there are differences of opinion on that. Trump would like to do another flurry of executive orders that would jump-start the economy.”

U.S. Capitol Dome

Government Funding Expires Sept. 30

Lawmakers returned to Washington this week with a five-week legislative schedule in the Senate and four-weeks for the House.  In addition to COVID-19 related legislation, Congress has until Sept. 30 to pass a funding bill to keep the federal government open beyond the end of FY2020 or face a shutdown before the November elections. 

  • House Speaker Nancy Pelosi (D-CA) and Secretary Mnuchin have reportedly agreed to work on a temporary funding bill without unrelated policy riders.  A spending bill would likely include continued funding for the National Flood Insurance Program and the EB-5 Regional Center Program, which provides visas to foreign nationals who pool their investments to finance U.S. economic development projects.  (CQ, Sept. 3)
  • A Continuing Resolution (CR) would fund the government at current levels, yet how long such a measure would last is uncertain. Senate Majority Leader Mitch McConnell (R-KY) on Wednesday said he supports a stopgap spending bill through December, although Senate Minority Leader Schumer indicated no decisions have been made about the length of a CR.  (The Hill, Sept. 9)

Sen. Roy Blunt (R-MO), chairman of the Senate Republican Policy Committee, said yesterday, “My guess would be that if we leave in September with a CR we will not come back to do anything before the election.”  (Washington Post, Sept. 9)

#  #  #

Congress Reaches Spending Deal to Avert Shutdown; Roundtable and Business Coalition Urge Year-End TRIA Reauthorization

Posted on by Trey Jackson

US-Capitol_x475w_greenery

A bipartisan spending deal to fund the government before a Dec. 20 deadline has been agreed to in principle, with details and a vote expected next week, according to top congressional lawmakers.  During the year-end policy rush to attach other legislation to the must-pass spending bill, The Roundtable and a diverse business coalition on Dec. 11 urged Congress to extend the Terrorism Risk Insurance Act (TRIA) for 7 years by passing S. 2877.

  • After rounds of funding negotiations between leaders of Senate and House appropriators this week, House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steven Mnuchin, House Appropriations Chairwoman Nita Lowey (D-NY) on Thursday reported, “There’s a meeting of the minds.”  (Wall Street Journal, Dec. 12 and The Hill)
  • “Let me say in no uncertain terms, nobody wants to have a government shutdown,” said Sec. Mnuchin.  (Bloomberg Tax, Dec. 12)
  • Funding for the National Flood Insurance and EB-5 investor programs are currently operating under a four-week spending bill signed by President Trump on Nov. 21.  If a new round of funding is not agreed to by policymakers, the programs will shutdown on Dec. 21. (Roundtable Weekly, Nov. 22)
  • The spending agreement would avert a shutdown by spreading nearly $1.4 trillion in discretionary government spending over a dozen appropriations bills for FY2020, which ends Sept. 30, 2020.  The specific bills are likely to be unveiled Monday. (BGov, Dec. 13)
  • The contentious issue of funding for border wall along the Mexican border, which led to a 35-day government shutdown last year, is reportedly part of an agreement on immigration issues. The spending deal would provide the same funding for the border wall that Congress offered for fiscal year 2019 – $1.375 billion, instead of $5 billion requested by the White House.  (Roll Call, Dec. 12)
  • A flurry of policy developments this week may result in lawmakers agreeing to the massive funding bill, a U.S.-Mexico-Canada trade agreement and a Phase One Deal with China.

As lawmakers work to assemble the final spending package to pass by Dec. 20, several other measures – including a seven-year TRIA reauthorization and tax extenders – may compete for inclusion in the final “omnibus” bill.

Roundtable Urging TRIA Reauthorization

On Dec. 11, The Roundtable and a  diverse business coalition sent a letter to all members of the Senate urging action on the Terrorism Risk Insurance Program Reauthorization Act of 2019 (S. 2877) as soon as possible.  The Senate bill would extend TRIA for seven years, “allowing the program to continue providing vital economic protections against acts of terrorism that companies throughout the nation rely on,” according to the letter. 

  • The letter also notes, “Since its initial enactment in 2002, TRIA has served as a vital public-private risk sharing mechanism, ensuring that private terrorism risk insurance coverage remains available to commercial businesses, educational institutions and non-profit organizations at virtually no cost to the taxpayer.”
  • A seven-year TRIA reauthorization passed the House on Nov. 18 (H.R. 4634) as the Senate Banking Committee advanced a similar bill (S. 2877) on Nov. 20.  (Roundtable Weekly, Nov. 22)
  • Last week, The Roundtable and its partners in the Coalition to Insure Against Terrorism (CIAT) urged Senators to include the TRIA reauthorization in a possible year-end spending package.  (CIAT Letter, Dec. 2)
  • Roundtable President and CEO Jeffrey DeBoer commented on the importance of TRIA in a Dec. 12 Bisnow article on “5 Policy Issues That Could Affect Commercial Real Estate In 2020.”
  • “The reason it’s important is you want your assets, the property and potential damage to be covered by insurance, but you also want the people in your building to be covered by insurance if, God forbid, something happened,” DeBoer said. “If you don’t have all risk coverage on your asset, typically it’s very difficult to get financing for that asset from a bank or pension fund.”
  • “We’re optimistic we can get it done before the end of 2019,” he said. “If that does not happen, our top priority in 2020 will be to extend TRIA and maintain that Act.”  (Bisnow, Dec. 12)

House Majority Leader Steny Hoyer (D-MD) said yesterday that a final omnibus containing the spending bill and other measures may be grouped into two packages and voted on Tuesday.  Congress is expected to adjourn for the holiday recess by Dec. 20.  (The Hill, Dec. 12) 

#  #  # 

Tax Measures and TRIA Among Year-End Policy Rush

Posted on by Trey Jackson

Capitol Hill
Congress faces a Dec. 20 deadline to fund the government or risk a shutdown as the impeachment process continues in the House, with a likely trial in the Senate beginning in January.

  • Funding for the National Flood Insurance and EB-5 investor programs are currently operating under a four-week spending bill signed by President Trump on Nov. 21.  Without a spending bill or a “Continuing Resolution” (CR) extending current funding, the programs will shutdown on Dec. 21 until Congress reaches a resolution. (Roundtable Weekly, Nov. 22)
  • Several legislative measures – including an end-of-year tax policy bill and reauthorization of the Terrorism Risk Insurance Act (TRIA) – may compete for inclusion in a must-pass “omnibus” spending package. Yet lawmakers may not have enough time to complete fiscal 2020 appropriations before current funding runs out in two weeks.  Another CR is a possibility before Congress breaks for the holiday.
  • The contentious issue of appropriating Department of Homeland Security (DHS) funds for a wall on the border with Mexico remains a sticking point in negotiations. This same issue led to a historic, 35-day government shutdown from Dec. 22, 2018 to Jan. 25, 2019.
  • This year, the Trump Administration has requested $8.6 billion for Fiscal Year 2020 to build the wall – and an additional $3.6 billion to restore military base funding that was previously transferred toward partial wall construction.  An administration official said President Trump will not sign any nondefense bill until funding for DHS and a border wall are resolved.  (CQ, Dec. 4)
  • Among the legislative measures of importance to commercial real estate that may be included in a year-end omnibus are tax extenders and technical corrections.
  • Negotiations on a tax package and extenders have been difficult, according to Senate Finance Chairman Chuck Grassley (R-IA). “It’s different this year from other years,” he said. (Politico, Dec. 5)
  • House Ways and Means Committee Chairman Richie Neal (D-MA) said yesterday that some technical corrections to the 2017 tax overhaul law could become part of a year-end tax bill.  “I’m interested in some technical corrections,” Neal said, adding that they could include a fix to an error that prevents restaurants and retailers from immediately expensing the cost of interior renovations.  (BGov Tax, Dec. 5)
  • A top legislative priority for CRE that is also outstanding is a seven-year TRIA reauthorization, which passed the House on Nov. 18 (H.R. 4634) as the Senate Banking Committee advanced a similar bill (S. 2877) on Nov. 20.  (Roundtable Weekly, Nov. 22)
  • The Real Estate Roundtable is working with its partners in the Coalition to Insure Against Terrorism (CIAT) to urge Senators to include the TRIA reauthorization in a possible year-end spending package.  CIAT sent a letter this week to all Senators urging them to co-sponsor S. 2877 and secure its passage before the end of 2019. (CIAT Letter, Dec. 2)
  • The Roundtable and its CIAT partners continue to meet with Senate offices to encourage increased support for S. 2877. Sen. Thom Tillis (R-NC) is the lead sponsor, with 17 bipartisan cosponsors.
  • As Congress attempts to juggle many legislative priorities – including an updated version of a trade agreement with Mexico and Canada (USMCA) and a bill on prescription drug costs – the pressure to pass multiple appropriations bills funding government agencies may lead to a Continuing Resolution extending current funding.

House Majority Leader Steny Hoyer (D-MD) told reporters this week, “I don’t want to contemplate having bills pushed over [into 2020] because we can’t get agreement.”  (CQ, Dec. 4)

#  #  #