News Type: Roundtable Weekly

Roundtable-Backed Corporate Diversity Bill Reintroduced in House and Senate

Posted on by Trey Jackson

Legislation requiring public companies to report on the diversity of their corporate boards and executive officers was reintroduced Feb. 23 in the Senate and House by Sen. Bob Menendez (D-NJ), above right, and Rep. Gregory Meeks (D-NY), left, (Bloomberg Law, Feb. 23) 

  • The Improving Corporate Governance Through Diversity Act  would amend the 1934 Securities Exchange Act to require issuers of securities that must file annual reports to disclose in proxy statements:
    • Data on the racial, ethnic, and gender composition of their executive officers, board of directors, and board nominees;
    • Whether any director, board nominee, or executive officer is a veteran; and
    • Plans or strategies to promote diversity at the board and executive levels. 
  • “Without greater diversity in top corporate positions, the U.S. will fail to compete with other leading economies and stall our nation’s progress towards full inclusivity,” said Sen. Menendez. “It’s time corporate boardrooms mirror the rich diversity of our country.” (Menendez news release, Feb. 23
  • “Revealing the gender, racial, ethnic and veteran makeup of these corporate C-suites and boardrooms will not only shed light on the value of diversity, but hopefully encourage corporate shareholders to increase diversity in the highest ranks of their corporations,” said Rep. Meeks. (Meeks news release, Feb. 23)
  • The Improving Corporate Governance Through Diversity Act passed the House in the last Congress but did not advance in the Senate. (Roundtable Weekly, July 31, 2020). Now that the Senate is controlled by the Democrats, the measure has a higher likelihood of passage this session.
  • The Roundtable supports the Menendez-Meeks bill along with other groups including Nareit, NAIOP, International Council of Shopping Centers, Real Estate Executives Council (REEC) and the U.S. Chamber of Commerce. (Meeks news release, Feb. 23)
  • “Diversifying corporate leadership is a critical step to provide equal business opportunities for all Americans, and we urge Congress to pass the Improving Corporate Governance Through Diversity Act,” said Roundtable President and CEO, Jeffrey DeBoer. ”It’s been estimated that $5 trillion can be added to US GDP over the next five years if we close the systemic gaps that have prevented Blacks, Hispanics, and other under-represented groups from fully and fairly participating in our economy.”
  • Reports from PwC and McKinsey & Co. find that diversity in corporate management and leadership drives profitability.  The McKinsey report concludes that “companies with more diverse executives were 33% more likely to see above average profits.” (CNBC, June 12, 2020)
  • The Roundtable’s Equity, Diversity and Inclusion (ED&I) Committee recently issued its mission statement to create equal opportunities for Black Americans and other minorities to prosper in the commercial real estate industry. (Roundtable Weekly, Feb. 12)

The Roundtable is also a “Founding Diversity Partner” in a national program recently launched by the Real Estate Executives Council (REEC) — the leading trade association formed to promote the interests of minority executives in the CRE industry. (Roundtable Weekly, Feb. 5) 

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Biden Policy Eases Funding Constraints on Mass Transit Projects

Posted on by Trey Jackson

NYC bridges

The Biden Administration released a policy letter on Feb. 16 enabling states to more readily access federal grant dollars to help finance mass transit and other large-scale transportation projects. (FTA “Dear Colleague” letter and CQ, Feb. 16).

  • The letter from Acting Federal Transit Administrator Nuria Fernandez reverses Trump-era policy from 2018. The earlier policy restricted the amount of transportation money states could receive from the U.S. Department of Transportation (DOT) through the Capital Investment Grants (CIG) program if the project also received a low-interest DOT loan.
  • The Feb. 16 letter clarifies that DOT loans extended under the Transportation Infrastructure Finance and Innovation Act (TIFIA) or the Railroad Rehabilitation & Improvement Financing (RRIF) program – when repaid with non-federal funds – can count toward the state’s cost-share requirement to also qualify for a “new starts” CIG grant.
  • The Roundtable has long supported the FTA’s recent step. “Loans repaid [by states] with interest are fundamentally different instruments than grants awarded with no repayment obligation,” The Roundtable noted in a 2019 letter to the House’s Transportation and Infrastructure Committee.  The letter added, “Credit-worthy state and local project sponsors who successfully navigate the TIFIA loan process should not be penalized for seeking a CIG grant as a separate, necessary layer in the capital stack to finance a massive transit project.” (Roundtable Weekly, May 3, 2019)   
  • The FTA’s policy change should help large-scale transportation projects of national and regional significance that may qualify for both CIG grants and TIFIA loans.  [See nationwide lists of CIG projects and TIFIA projects.] One prominent example is the New York-New Jersey Gateway Program, a $30 billion modernization of Amtrak’s Northeast Corridor.
  • Senator Bob Menendez (D-NJ) applauded the Biden Administration’s action, noting that the effect of the 2018 policy was to “stall the Gateway project” which includes replacing a 110-year-old bridge and construction of a “new Trans-Hudson rail tunnel.” (Menendez press release, Feb. 16)
  • The Real Estate Board of New York (REBNY) applauded the Biden FTA’s move.  “Restoring access to federal funding for Gateway is an initial but pivotal step toward advancing the project, which will improve mass transit service for millions of commuters, create thousands of good jobs and play a significant role in getting our regional and national economics back on track,” said REBNY President Jim Whelan. (REBNY news release, Feb. 18) 

Movement on Infrastructure

The Roundtable’s recommendations regarding infrastructure financing and permitting will again be featured in our forthcoming 2021 Policy Agenda. The Roundtable is also a member of the  “Build by the 4th”coalition, led by U.S. Chamber of Commerce, which urges Congress to pass a comprehensive infrastructure bill by Independence Day 2021. 

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House Democrats’ $1.9 Trillion Virus Relief Bill Faces Possible Changes in Senate; President Biden Extends Residential Foreclosure Moratorium and Forbearance Program

Posted on by Trey Jackson

U.S. Capitol

House Democrats are quickly advancing a $1.9 trillion coronavirus relief proposal through committees to create a final bill that may face delays in the Senate, but is expected to give President Biden his first major legislative accomplishment by March. (BGov, Feb. 18)

  • The Real Estate Roundtable has consistently urged Washington policymakers to take aggressive actions to combat the pandemic and its economic repercussions. (Roundtable Weekly, Feb. 12)
  • Speaker Nancy Pelosi (D-CA) last week said she expects the House will approve a bill “by the end of February so we can send it to the president’s desk before unemployment benefits expire” on March 14. (CNBC, Feb. 11)
  • The House legislation is being considered under a budget reconciliation process that allows passage in the Senate with only a simple majority – yet certain measures such as a minimum wage increase face opposition from Democratic Senators that could pose delays in the 50-50 upper chamber. (The Hill, Feb. 17)
  • House Majority Leader Steny H. Hoyer (D-MD) told his Democratic colleagues in a Feb 16 letter that “Members should be aware that the House may need to remain in session through the weekend next week to complete consideration.”
  • Anticipating potential changes to the House bill from the Senate, Hoyer added, “During the week of March 8, the House will continue in legislative session. We will be ready to take further action on the American Rescue Plan in the event the Senate amends it and sends it back to us.” (Rep. Hoyer’s Feb. 16 Dear Colleague letter)
  • The Democratic House bill include $25 billion in assistance to renters and their landlords, as well as $10 billion for assistance to homeowners. It would also provide $350 billion for state and local governments, territories and tribal governments to respond to the economic downturn caused by the pandemic.  (“Where things stand on the COVID-19 relief measure,” The Hill, Feb. 17)
  • The two chambers must reconcile differences before a final bill is sent to Biden’s desk.  Comparisons of the Democratic and Republican proposals are available from CNN, The Wall Street Journal, and USA Today.

Foreclosure Moratorium Extended

  • President Biden on Feb. 16 further extended a ban on home foreclosures for Americans with federally backed mortgages through June 30, as well as a residential mortgage payment forbearance program that allows people to pause or reduce payments.  On his first day as president, Biden issued an executive order extending eviction protections for the country’s 44 million rental households until March 31. (USA Today, Feb. 16 and Forbes, Feb. 3 )
  • According to a White House Fact Sheet, the extension benefits 2.7 million homeowners currently in COVID forbearance and extends the availability of forbearance options for nearly 11 million government-backed mortgages nationwide.

The White House statement on the extensions also referred to the pandemic relief package under consideration in Congress. “To bolster these efforts, it is critical that Congress pass the American Rescue Plan to deliver more aid to struggling homeowners. The rescue plan creates a Homeowners Assistance Fund which will provide states with $10 billion to help struggling homeowners catch up on their mortgage payments and utility costs,” according to the Feb. 16 statement.

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President Biden Focuses on Infrastructure Policy Plan With Key Senate Committee Leaders

Posted on by Trey Jackson

Infrastructure Meeting at White House with Senate EPW members

The critical need for investing in modern and sustainable infrastructure was the focus of a Feb. 11 White House meeting between President Joe Biden, Vice President Kamala Harris, Transportation Secretary Pete Buttigieg, and a bipartisan group of senators from the Environment and Public Works (EPW) Committee.

  • The Senate EPW committee was represented by Chairman Thomas Carper (D-DE), Transportation Subcommittee Chairman Ben Cardin (D-MD), Ranking Member Shelley Moore Capito (R-WV), and former Chairman James Inhofe (R-OK).
  • Biden stated at the meeting that the EPW Committee “is central to everything that’s going to happen” on infrastructure. (White House Remarks and meeting video, Feb. 11). White House Press Secretary Jen Psaki remarked that the meeting “was a reflection of how important it is [for Biden] to meet with bipartisan leaders and have a discussion about what’s required in states and communities.” (White House press conference video, Feb. 11) 
  • The president noted the importance of investing in infrastructure to maintain Americas’s international competitiveness, referring to China’s advancements in high-speed rail and automobiles by stating, “if we don’t get moving, they’re going to eat our lunch.” (Washington Post, Feb. 11)
  • Sen. Cardin said after the meeting that “it’s going to be a challenge to… have adequate revenues to fund transportation moving forward.” Congressional focus on an infrastructure package is widely expected to take place after the legislature acts on the next round of COVID-19 relief. (Politico, Feb. 11). 
  • Sens. Cardin and Carper led a Feb. 9 letter from nearly 50 Democrats from both the House and Senate to Secretary Buttigieg, regarding the need for federal transportation policies to create jobs while also reducing carbon pollution, with an emphasis on reducing vehicle tailpipe emissions.
  • 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 December industry letter stated, “A strong national infrastructure is vital to the health of the nation’s real estate, and vice versa. Roads, bridges and mass transit enhance the values of nearby properties, which in turn generate greater tax revenues to fund even more infrastructure assets.”
  • The Roundtable is also 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.

The Biden Administration is expected to reveal its infrastructure package soon as part of its “Build Back Better” agenda to spur economic recovery from the repercussions of the pandemic.

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Roundtable’s ED&I Committee Releases Mission Statement Aiming to Advance Racial Equity in CRE

Posted on by Trey Jackson
Roundtable Meeting

The Real Estate Roundtable’s Equity, Diversity and Inclusion (ED&I) Committee finalized its mission statement on Wednesday, with a key objective to create more economic opportunities for Black, Latino and other historically under-represented groups to prosper in the commercial real estate industry.

  • The ED&I Committee’s mission statement draws from the Biden-Harris Administration’s executive order “On Advancing Racial Equity and Support for Underserved Communities” (Jan 20), as well as data recently reported by Citi GPS on the economic cost of racial inequality in the U.S.

  • The statement provides a four-part mission to:
    • Encourage RER’s members to create equal opportunities in real estate’s management, workforce, supply chain, and capital markets for Black, Latino, and other professionals historically under-represented in the CRE industry;
    • Develop an anti-discrimination, pro-inclusion federal policy agenda within The Roundtable’s traditional spheres of influence as an advocate on tax, capital markets, ESG, housing, infrastructure, and immigration matters;
    • Forge alliances by The Roundtable with civil rights and minority business organizations; and
    • Increase diversity among Roundtable membership, directors, contractors, and staff.

       

  • Roundtable Board Member and ED&I Committee Chairman Jeff Blau (CEO, Related Companies) stated, “The creation of a mission statement is a foundational step that will guide The Roundtable in its crucial work to create equity and affect real change in the real estate industry. Diversifying our industry is not a task that can be left to a few, rather it is a responsibility for all of our members and I look forward to continuing to work with RER to advocate for and drive meaningful progress.”

  • The ED&I Committee’s initial focus will be on initiatives to boost opportunities for minority-owned firms in CRE’s supply chain of service providers, and support appropriate federal policy proposals to improve diversity in corporate governance.

  • The Roundtable is also a “Founding Diversity Partner” in a national program recently launched by the Real Estate Executives Council (REEC) — the leading trade association formed to promote the interests of minority executives in the CRE industry.  The Roundtable’s ED&I mission statement reflects the goals of REEC’s framework, including objectives to increase corporate spend on minority-owned vendors, develop a pipeline of racially diverse CRE talent, and improve access to capital and credit for minority owned investment managers.  (Roundtable Weekly, Feb. 5)

  • NAIOP and the National Multifamily Housing Council (NMHC) are also among the founding partners in REEC’s initiative.

“The events of the last year have laid bare the injustices faced by Black Americans and other minorities in our economic, public health, and social institutions,” said Jeffrey D. DeBoer, President and CEO of The Real Estate Roundtable.  “The Roundtable must do our part to help create an equal playing field of opportunities for all Americans to prosper in our industry.” (ED&I Mission Statement, Feb. 10)

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House Committees Advance Provisions Supporting President Biden’s $1.9 Trillion Virus Relief Proposal; Democrats Aim to Pass Final Bill by Month’s End

Posted on by Trey Jackson

U.S. Capitol

House committees this week advanced legislative language that will transform President Joe Biden’s $1.9 trillion pandemic relief package proposal into a consolidated bill and provide details on aid for states and local communities; assistance for renters and homeowners; and support for small businesses.

  • The progress in the House is a positive development that brings much-needed economic relief and funding to defeat COVID-19 one step closer to enactment. The Real Estate Roundtable consistently has urged policymakers to take aggressive actions to combat the pandemic.
  • Roundtable President and CEO Jeffrey DeBoer said,” The Real Estate Roundtable is encouraged by both Democratic and Republican efforts to work toward additional economic relief from the pandemic. Given the continuing great need for additional assistance to cities, people and businesses, we continue to urge policy makers to find a path forward.” (Roundtable Weekly, Feb. 5)
  • Democrats plan to pass the final legislation through “reconciliation” procedural protections, which will prevent a filibuster by Republicans when the measure reaches the 50-50 Senate. House Speaker Nancy Pelosi (D-CA) yesterday said she expects the House will approve a bill “by the end of February so we can send it to the president’s desk before unemployment benefits expire” on March 14.  (CNBC, Feb. 11 and Roundtable Weekly, Feb. 5)
  • The House Ways and Means Committee on Feb. 11 approved over $630 billion in new tax relief, including $460 billion in 2021 alone.  Their provisions include $1,400 payments to individuals; credits for children, childcare and dependent care; and expansion of the Earned Income Tax Credit. The temporary federal unemployment and benefit would also be extended through August 29, 2021, increasing the weekly benefit from $300 to $400. (Wall Street Journal, Feb. 11and Ways and Means Committee mark-up videos)
  • The committee proposal – “Subtitle G. Budget Reconciliation Legislative Recommendations Relating to Promoting Economic Security – passed on a partisan 24-18 vote with  no amendments. (Section-by-section summary and Joint Committee on Taxation (JCT) description)

House Ways and Means Chairman Richard Neal (D-MA)

  • House Ways and Means Committee Chairman Richard E. Neal (D-MA), above, stated, “Over the last two days, the Ways and Means Committee has considered aggressive, science-based solutions that will deliver the urgent relief our country so desperately needs. From unemployment benefits to health care affordability, the work we’ve done is substantial, and it is exactly what the American people have been calling on us to do to meet this moment.” (Ways and Means news release, Feb. 11)
  • The House Financial Services Committee was also one of the House committees this week that held legislative markup sessions to formulate legislative details for Biden’s pandemic relief proposal. (Financial Services Committee Instructions, Feb. 4 and Markup videos, Feb. 10)
  • In her markup opening statement Financial Services Committee Chairwoman Maxine Waters (D-CA) noted, “The package also includes $25 billion to provide rental assistance, including $5 billion towards 70,000 emergency vouchers and funding directed to rural and tribal communities.  The package also includes language … to provide $10 billion to support struggling homeowners, who face a looming foreclosure crisis. And, it … provides $10 billion to support small businesses, including minority-owned businesses that are closing their doors at historic rates.”
  • More than half of 2.7 million active home mortgage forbearance plans are set to end in March, April, May or June, according to mortgage-data firm Black Knight Inc. (Wall Street Journal, Feb. 9)
  • During the Small Business Committee’s Feb. 10 markup, $50 billion in emergency pandemic aid for small businesses was approved. Committee Chairwoman Nydia M. Velazquez said, “Surveys show that one in three small business owners will not survive the next few months without additional financial support.” (Rep. Velaquez opening statement, Feb. 10)
  • The committee’s language would also provide $25 billion for restaurants and bars under a new Small Business Administration program, and $15 billion for “economic injury disaster” loans.  (Washington Post and BGov, Feb. 11)

In the Senate, the pandemic relief package is expected to go straight to the Senate floor, circumventing the committee “mark-up” process, due to the ongoing impeachment trial of former President Donald Trump, which may conclude this weekend. (Bloomberg, Feb. 11)

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Benjamin V. Lambert, Eastdil Secured Chairman, Transformed Industry Advocacy

Posted on by Trey Jackson

Ben Lambert of Eastdil Secured

Benjamin V. Lambert – an industry icon who served as Chairman of Eastdil Secured and as former Chair of The National Realty Committee (predecessor of The Real Estate Roundtable) – passed away the weekend of Jan. 30. (Commercial Observer, Feb. 2 and TheRealDeal, Feb. 1)

  • “Ben Lambert’s leading role in modernizing commercial real estate finance is well known“ said Jeffrey DeBoer, Roundtable President and CEO. “Less well known is the profound influence Ben had on industry advocacy efforts in Washington. He was a Founding Member and later Chairman of The National Realty Committee (NRC) – the organization that evolved to become The Real Estate Roundtable – and many of his early advocacy principles, such as industry unification across product type, remain traits of the Roundtable to this day. We will miss him but we will not forget him.”
  • A Jan. 31 email by Eastdil Secured’s CEO Roy Hilton March and President D. Michael Van Konynenburg sent to friends and clients stated, “Ben was a true father-like figure to many of us, and we will miss his wisdom, warmth, leadership and love. In a tough, high stakes environment, Ben never had a bad word to say about anyone.” They added that a future ceremony may be held in honor of Mr. Lambert when large gatherings are deemed safe again.
  • (Mr. March serves on The Roundtable’s Board of Directors and Mr. Van Konyenburg is also a Roundtable Member.)
  • Lambert founded Eastdil in 1967, bringing a Wall Street investment banking approach to real commercial real estate for more than 50 years. He was the chief financial negotiator in the 1977 sale of Irvine ranch in California and structured the financing of San Francisco’s Embarcadero Center and the MacArthur Foundation apartment portfolio. He also led some of the largest transactions in the country, including the sale of Chicago’s Willis Tower and New York City’s General Motors.

Among his many affiliations beyond Eastdil, he served on the board of trustees for Brown University and the Silver Shield Foundation and was a Founder and Chairman of the Harlem Day Charter School.

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Bipartisan Legislation Allowing REITs to Increase Investment in Commercial Tenants Introduced

Posted on by Trey Jackson

Downtown Salt Lake City, Utah

Bipartisan legislation introduced Feb. 4 by House Ways and Means Members Brad Schneider (D-IL) and Darin Lahood (R- IL) would modernize real estate investment trust (REIT) tax provisions to permit REITs to invest equity in struggling commercial tenants that have been harmed by the COVID-19 pandemic. (News release, Feb. 4)

  • The Retail Revitalization Act of 2021 (H.R. 840) – strongly supported by The Roundtable and a coalition of real estate, retail, and labor interests – would help address the challenges in the retail sector that have been exacerbated by the coronavirus. Failure to make these changes could result in further retail bankruptcies, liquidations of retail businesses, large-scale job losses and a collateral impact on related supply chains that service the sector.   
  • “The COVID-19 pandemic has decimated the retail sector, resulting in lost jobs and shuttered doors. Retailers across the county are already facing bankruptcy, liquidation or large-scale job losses. Allowing REIT landlords to infuse more capital into their retail tenants will help offset the retail sector’s devastating losses caused by the pandemic and save jobs,” said Rep. Schneider.
  • Rep. Lahood added, “Retailers need more funding as they work to recover from the pandemic and this legislation will help infuse critical private capital into small businesses struggling.”
  • Roundtable member Brian Kingston, CEO of Brookfield Property Group commented, “As one of the largest shopping mall owners in the U.S., we have seen first-hand the devastating effects the pandemic has had on many of our tenants.  A modernization of the REIT rules—like those contained in the Retail Revitalization Act—will allow us to respond to our tenants request for further assistance, in turn allowing them to keep their doors open, save thousands of jobs, and continue to generate millions in tax revenue for federal, state, and local governments.”
  • The bill would modify existing related-party rent rules that treat rental income received by a REIT from a tenant in which the REIT owns more than a 10 percent interest as bad income for REIT purposes.  Specifically, among the changes, the bill would:
    • increase the capacity of a REIT to own the equity of a tenant from 10% to 50%, and
    • conform the ownership attribution rules used for determining what is considered related-party rent under the REIT rules to the general ownership attribution rules that apply to corporations.

Speaking at a virtual event with the sponsors and stakeholders on the day of introduction, Roundtable President and CEO Jeffrey DeBoer said, “[A]s important and helpful as Congress’s actions have been for smaller businesses, a lifeline is now needed, particularly to larger retail businesses and the people who work in the retail industry.”

“The legislation is not a tax cut or a tax break,” DeBoer continued, “It is very much a private sector solution.  It would provide a legal framework for property owners … to put their own capital at risk by making equity investments in struggling retail businesses that employ tens of thousands of workers nationwide.”  

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The Real Estate Roundtable Partners With REEC to Address Equity, Diversity and Inclusivity Disparities in Commercial Real Estate

Posted on by Trey Jackson

REEC logoThe Real Estate Roundtable is a Founding Partner of a national program unveiled Feb. 3 by the Real Estate Executive Council (REEC) – the trade association for CRE professionals of color – that will seek to address equity, diversity, and inclusivity issues across the commercial real estate industry with a wide spectrum of partner companies and organizations. (REEC news release, Feb. 3)

  • “The lack of diversity in the CRE industry, and the disparities that exist in access to capital and credit for African Americans and other people of color, are systemic problems that need a multifaceted approach. None of us can do this alone. Coming together to tackle the challenge through industry partnerships such as REEC’s Diversity Partner Program will give us a fighting chance,” said REEC Board Chair Tammy K. Jones, CEO and founder of Basis Investment Group.

  • Ken McIntyre, CEO of the REEC and a Real Estate Roundtable Board Member, said, “We are excited to launch the Diversity Partners Program and to work with this committed group of initial partners to improve diversity and inclusion in the CRE industry. We invite other firms to join REEC as Diversity Partners to further our mission. As an industry we have a great deal of work to do to change the paradigm.”

  • REEC’s initial diversity partners have committed to meaningful goals for diversity and inclusion in support of REEC’s mission. The founding diversity partners include:
  • The Roundtable’s Board of Directors has established an Equity, Diversity and Inclusion (ED&I) Committee, chaired by Roundtable Board Members Jeff T. Blau, CEO, Related Companies, which is organizing members and finalizing a mission statement. (Roundtable news release, Sept. 30, 2020) 

  • The framework of the partnership REEC has with The Roundtable and other founding partners includes the following goals:

    • Diversity Ecosystem – hiring and developing a pipeline of racially diverse talent.
    • Diversity Business Plan — focus on goals, measurements and transparency. 
    • Supplier or Vendor Diversity/Diversity Spend – increasing percentages of annual spend allocated to firms owned by people of color. 
    • Investment Allocations and Access to Capital & Credit – increase the amount of, and improve access to, capital and credit for minority-owned investment managers, developers, projects and communities. 

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Democrats Approve Budget Resolution Setting Up Path for Biden COVID-19 Package

Posted on by Trey Jackson

U.S. Capitol with flag

Vice President Kamala Harris broke a 50-50 tie in the Senate on Feb. 5 to pass a budget resolution that will allow President Biden’s proposed $1.9 trillion pandemic relief package to advance without GOP support. (New York Times, Feb. 5)

  • The budget resolution triggers special “reconciliation” procedural protections that prevent a possible filibuster by Senate Republicans – and will give tax-writing and other committees in both chambers until Feb. 16 to report legislative language for consolidation into a final pandemic relief bill. (“Budget Reconciliation: The Basics,” House Committee on the Budget)
  • Senate Majority Leader Chuck Schumer (D-NY) said, “This was a giant first step. So we will keep working as hard as we can to pass this legislation through the House, through the Senate as we go through the reconciliation process and hopefully put it on the President’s desk.” (Schumer statement, Feb. 5)
  • ‘House Speaker Nancy Pelosi and Senate Majority Leader Schumer issued a joint statement on Feb. 1 to unveil the budget resolution. “Congress has a responsibility to quickly deliver immediate comprehensive relief to the American people hurting from COVID-19. The cost of inaction is high and growing, and the time for decisive action is now,” according to the statement.
  • Additional unemployment assistance and other pandemic aid measures are scheduled to expire in March as calls increase for more funding to support vaccine distributions, direct payments to households, school reopenings, and relief for businesses. (AP, Feb. 2)  
  • Earlier in the week, President Biden’s $1.9 trillion pandemic relief package proposal was countered by a $618 billion Republican proposal. The GOP counter-proposal did not include aid for state and local governments, rental assistance, or further extension of the CDC’s eviction moratorium beyond its current expiration date on March 31. (Comparisons of the Democratic and Republican proposals have been prepared by CNN, The Wall Street Journal, and USA Today).
  • Roundtable President and CEO Jeffrey DeBoer said,” The Real Estate Roundtable is encouraged by both Democratic and Republican efforts to work toward additional economic relief from the pandemic. Given the continuing great need for additional assistance to cities, people and businesses, we continue to urge policy makers to find a path forward.”

Changes Possible Before Final Package

  • White House Press Secretary Jen Psaki commented there may be some changes to Biden’s “American Rescue Plan” to achieve compromise on the next pandemic package, including lowering the qualifying income threshold for the proposed $1,400 in direct payments. (AP’s YouTube channel, Feb. 2)
  • The reconciliation process allows for congressional tax-writing committees to consider measures that could potentially be added to the package. A group of 120 House and Senate Democrats – led by Ways and Means Member Lloyd Doggett (D-TX) and Senate Finance Committee member Sheldon Whitehouse, (D-RI) – this week urged congressional leaders to reinstate the full limitation on net operating losses and active business losses that were part of the Tax Cuts and Jobs Act of 2017.  The CARES Act included tax relief that allowed businesses to carry back 2018-2020 net operating losses to prior years, thus allowing them to claim refunds for taxes paid in earlier years.
  • The letter states that proceeds from reversing the NOL measure “should be repurposed to help Americans who have lost income due to the pandemic and its economic fallout.” (Feb. 2 letter)

Separately, a power-sharing agreement for the 50-50 Senate was unanimously adopted on Feb. 3 by the chamber after Majority Leader Schumer and Minority Leader Mitch McConnell (R-KY) finalized terms. The agreement allows Democrats to take control of Senate committees and formalize their leadership. (Wall Street Journal and Politico, Feb. 3)

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