Congress – Page 4 – The Real Estate Roundtable

Roundtable Calls for Common Sense Gun Policy

Posted on May 27, 2022October 27, 2023 by Trey Jackson

Roundtable President and CEO Jeffrey DeBoer, above, issued a statement today on gun violence in America.

“Enough is enough. Congress must set politics aside. We call on Congress to use its moral authority to help make our schools, places of worship, work, shopping and recreation more safe from gun violence.”
“Democrats and Republicans must come together, in a national act of healing, and pass common sense legislation to remove weapons of war from America’s cities and communities. Enough is enough,” DeBoer said.

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Inflation Threatens Biden Agenda as Fed Chair Powell Addresses Raising Interest Rates

Posted on April 22, 2022October 27, 2023 by Trey Jackson

President Joe Biden traveled throughout the country this week to promote the benefits of infrastructure projects as rising inflation threatens his administration’s revamped “Building a Better America” domestic agenda. Meanwhile, Federal Reserve Chair Jerome Powell affirmed expectations that interest rates will begin increasing next month with consumer inflation running at an annual pace of 8.5 percent. (NBC News, April 19 and Associated Press, April 20)

Revising “Build Back Better”

Democrats are expected to resuscitate parts of the moribund Build Back Better (BBB) Act when Congress returns on April 25 by focusing on a scaled-back package to attract enough party line support in the 50-50 Senate for passage. (Roundtable Weekly, April 15)
A key consideration for Senate Democrats and the White House will be agreement on policy priorities with Sens. Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ), who rejected the administration’s BBB social and climate policy package late last year. (Roundtable Weekly, Jan. 21)
Sen. Manchin cited inflation as one of his top concerns about passing more spending bills. “Getting inflation under control will require more aggressive action by a Federal Reserve that waited too long to act,” Manchin recently said. (The Hill, April 12)
Sen. Sinema will discuss the current policy landscape in Congress with Real Estate Roundtable members next week in Washington DC during The Roundtable’s April 25 Spring Meeting.
Rising consumer prices and inflation have been a focus of Republicans as the mid-term elections are only about six months away. (BGov and Fortune, April 20)
House Ways and Means Committee Ranking Member Kevin Brady (R-TX) on April 12 discussed inflation’s threat to small businesses and the administration’s agenda on CNBC’s Squawkbox.

Fed & Interest Rates

The Consumer Price Index’s rise to 8.5 percent last month – the fastest annual increase in 40 years – sparked expectations that the Fed will move aggressively to raise interest rates. (Bureau of Labor Statistics, April 12 and CBS News, April 21)
The Federal Reserve’s Open Market Committee will meet next on May 3-4 to consider monetary policy, the discount rate and consider a reduction in the nearly $9 trillion in bonds on its balance sheet.
Powell, above, commented yesterday on the Fed’s target for annual price increases. “We really are committed to using our tools to get 2 percent inflation back,” he said, adding, “It’s absolutely essential to restore price stability.”
Powell also noted a half point interest rate increase next month may be the start of future interest rate increases. “I would say 50 basis points will be on the table for the May meeting,” he stated. (CNBC, April 21)
He also said the Fed will act to get demand and supply back in balance, “so that inflation moves down and does so without a slowdown that amounts to a recession.” (CNBC, April 21)
The Fed also released this week its latest “Beige Book” containing anecdotal information on current economic conditions. The report stated “supply chain backlogs, labor market tightness, and elevated input costs continued to pose challenges” and that “outlooks for future growth were clouded by the uncertainty created by recent geopolitical developments and rising prices.” (Fed’s Beige book, April 20)

The Roundtable’s Spring Meeting next week will include a discussion with former Fed Board Member Kevin Warsh on inflation, interest rate expectations, potential asset bubbles and other economic challenges.

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Congress Passes $1.5 Trillion Omnibus Funding Package With EB-5 and LIBOR Legislation

Posted on March 12, 2022October 27, 2023 by Trey Jackson

Congress this week passed a $1.5 trillion “omnibus” spending package that would fund government programs through September and provide $13.6 billion for emergency Ukraine assistance. The omni also includes Roundtable-supported language to address the transition away from the London Interbank Offered Rate (LIBOR) and reform the EB-5 Regional Center Program. (See separate Roundtable Weekly story below on EB-5)

Omni Funding & Ukraine

The omni passed the House on a bipartisan basis on Wednesday and the Senate last night after months of negotiations. President Biden is expected to sign the 2,741-page omnibus spending package (H.R. 2471) today to avoid a government shutdown, since previously allocated funding expires at midnight. (Wall Street Journal, March 9 and March 10)
Roundtable President and CEO Jeffrey DeBoer said, “The Roundtable applauds these bipartisan actions by lawmakers to shore up funding for government operations, and pass positive changes impacting EB-5 and LIBOR. We look forward to Congress turning its focus to other essential issues facing American businesses, workers, local communities and CRE, as outlined in our recently released 2022 Policy Agenda.
“The Roundtable also fully supports the billions in federal aid to Ukraine as its citizens continue to bravely stand up against Russian aggression. As we bear witness to the tragic violence of the invasion, The Roundtable encourages its members and all industry stakeholders to contribute to charities involved in Ukrainian humanitarian relief,” DeBoer added. (VetVoice Foundation)
The Roundtable on March 25 will hold an open Zoom discussion on the situation in Ukraine with Lieutenant Colonel (USA, Ret.) Alexander Vindman, a Senior Advisor at VoteVets and the VetVoice Foundation. More details will be forthcoming on how to register.

Omni & CRE

EB-5
The omni legislation also includes the Roundtable-supported EB-5 Reform and Integrity Act of 2022, which would overhaul and reinstate the regional center program for five years. (See The Roundtable’s EB-5 Fact Sheet)
LIBOR
Another important bill included in the omni is the Adjustable Interest Rate (LIBOR) Act (H.R. 4616), which would provide for an orderly transition of debt contracts away from LIBOR. (Roundtable Weekly, Dec. 10, 2021)

Infrastructure
The omnibus package would also release an additional $197 billion to be spent over 10 years for energy, transportation, and other programs that were part of last year’s bipartisan infrastructure bill. (Roundtable Weekly, Feb. 11)

Reference: Appropriations bills | Ukraine Supplemental | One-page fact sheet

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House Passes Government Funding Extension Until March 11 as Appropriators Signal Progress on FY2022 Omnibus

Posted on February 12, 2022October 27, 2023 by Trey Jackson

The House of Representatives on Tuesday passed a continuing resolution (CR) that would prevent a government shutdown on Feb. 18 by extending current government funding levels for three weeks, through March 11. The CR, which also applies to the National Flood Insurance Program, moves to the Senate for consideration next week. (CR legislative text and summary)

CR & Omnibus

If passed by the Senate, the CR would give lawmakers additional time to finalize a separate “omnibus” spending bill for fiscal year 2022, which runs from Oct. 1, 2021 through Sept. 30, 2022. (BGov, Feb. 9)
House and Senate Appropriations Committee leaders announced on Wednesday a “framework” deal for top-line spending levels for defense and domestic funding. Such an agreement would clear the way for congressional committees to complete a sweeping 12-bill spending bundle, which could amount to a $1.5 trillion omnibus package funding government operations into the fall. (PoliticoPro, Feb. 10)
A full-year omnibus package would also release an additional $197 billion over 10 years for energy, transportation, and other programs that were part of last year’s bipartisan infrastructure bill. (BGov, Feb. 9 and CQ, Feb. 10)

Omni & BBB

The “omni” funding bill is now a focus of Congress since President Biden’s multi-trillion Build Back Better (BBB) Act has been sidelined on Capitol Hill. (Politico, Feb. 10)
Sen. Joe Manchin (D-WV), above, – a key vote in the 50-50 Senate – said on Sunday that he sees a government funding package as a higher priority than the stalled BBB bill. ‘We have to get a budget bill first,’ Manchin said. (CNN, Feb 6)
Manchin this week also expressed his reluctance to endorse additional federal spending, after news that consumer inflation rose to 7.5%, the largest 12-month increase in four decades. (BGov, Feb. 10)
Manchin’s statement included, “It’s beyond time for the Federal Reserve to tackle [inflation] head on, and Congress and the Administration must proceed with caution before adding more fuel to an economy already on fire. As inflation and our $30 trillion in national debt continue a historic climb, only in Washington, DC do people seem to think that spending trillions more of taxpayers’ money will cure our problems, let alone inflation,” Manchin said. (Newsweek, Feb. 10)

The start of the 2023 fiscal year cycle is approaching as Congress aims to pass an omnibus for the current year by March. President Biden is expected to release his FY2023 budget request shortly after his State of the Union address on March 1.

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Congress Considers Short-Term Continuing Resolution as Feb. 18 Budget Deadline Looms

Posted on February 5, 2022October 27, 2023 by Trey Jackson

House Democratic leaders, facing a heavy agenda and a Feb. 18 government funding deadline, are considering a three-week stopgap funding bill to allow appropriators more time to complete 2022 spending bills. (RollCall, Feb. 4)

Negotiating Omnibus

The House may vote early next week on a possible “Continuing Resolution” (CR) to extend current funding levels through March 11 and avoid a possible government shutdown. A CR would also require Senate approval. (CQ, Feb. 4)
Negotiations among congressional appropriations leaders to reach a deal on a bipartisan omnibus bill for FY202 – which runs from Oct. 1, 2021 through Sept. 30, 2022 – have stalled on reaching top-line spending levels for defense and domestic funding. (The Hill, Feb. 1)
This would be the third government funding stopgap for the fiscal year that began Oct. 1.
Yesterday, Senate Appropriations Committee Ranking Member Richard Shelby (R-AL) stated that the length of time agreed upon for another CR extension would reflect whether Democrats and Republicans can agree to a funding deal. “If it’s a short-term [CR], that would mean probably that we’re making some progress, real progress,” Shelby said. “If it’s longer, we might go … for the rest of the year.” (The Hill, Feb. 3)

A Demanding Agenda

A crowded congressional agenda – including what may be next for the stalled Build Back Better (BBB) Act, international geopolitics, and action on President Biden’s upcoming Supreme Court nominee – adds pressure for policymakers to reach agreement on a spending bill.
House Speaker Nancy Pelosi (D-CA), above, yesterday noted the urgency to reach an omnibus funding agreement. She stated, “We’re hoping to get that done as soon as possible in terms of … the omnibus bill.” Pelosi added, “One connection between infrastructure and omnibus is that some of the money in the infrastructure bill cannot be freed up until we pass the omnibus bill,” she said. (Pelosi Weekly Press Conference, Feb. 3)
Separately, the impact of the FY2022 funding negotiations are unlikely to affect the timing for congressional consideration of how to pare down the BBB Act (H.R. 5376), according to House Ways and Means Chair Richard Neal (D-MA) and Senate Finance Chair Ron Wyden (D-OR). Both policymakers said they did not want to set an “artificial” deadline for potential revisions to the stalled proposal. (Tax Notes, Feb. 3 and Roundtable Weekly, Jan. 21)
As FY2022 spending negotiations continue, The Washington Post reported today that the White House may request additional federal funding from Congress to aid pandemic recovery as current funding for preparedness is starting to dwindle.

President Biden is also expected to start the next fiscal year cycle with the release of his fiscal budget request for 2023 – shortly after his State of the Union address on March 1.

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White House Looks to Reset and Downsize Build Back Better Act; Roundtable Meeting to Address National Issues With Leading Policymakers

Posted on January 22, 2022October 27, 2023 by Trey Jackson

President Joe Biden acknowledged in a Jan. 19 news conference that his nearly $2 trillion social and climate package, the Build Back Better (BBB) Act, needs to be pared down in the face of stalled negotiations in the 50-50 Senate. “I think we can break the package up, get as much as we can now, come back and fight for the rest later,” Biden said, noting there are some areas of agreement with key Democratic Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona. (CQ and BGov, Jan. 20)

Revamping BBB

Biden and congressional Democratic leaders may pursue one revamped legislative package – instead of several separate bills – as the November mid-term elections grow closer. Democrats have pushed the BBB Act under restrictive budget reconciliation rules, which allows consideration of one bill that could pass with a simple majority in the evenly divided Senate. (Wall Street Journal and CNBC, Jan. 19)
Climate measures are emerging as a top priority for inclusion in a smaller bill. Manchin, chair of the Senate Energy and Natural Resources Committee, has signaled his support for that aspect of the BBB package. (CNN, Jan. 5 and New York Times, Jan. 20)
White House National Economic Council Director Brian Deese yesterday said that certain BBB proposals, including clean energy measures are “doable” and could pass Congress. “The clean energy provisions in this bill will not only make it easier and cheaper to deploy clean energy and address the climate crisis, it will reduce energy costs,” Deese said. (BGov and Bloomberg, Jan. 20)
If the Senate ultimately passes some revised version of the BBB Act that changes the House-approved version (H.R. 5376), the bill would need to go back to the House for another vote before it reaches President Biden’s desk. (Roundtable Weekly, Nov. 19, 2021)

Roundtable Support for Clean Energy Measures

The Roundtable has supported the BBB Act’s climate measures, which include a suite of clean energy tax credits and incentives amounting to $300 billion. (Roundtable Weekly, Jan. 7)
The Roundtable sent a letter to Congressional tax writers on Nov. 16, 2021 detailing five recommendations aimed at improving the green energy tax provisions affecting real estate. (Roundtable letter, Nov. 16)

BBB, ESG and More

Next week, key policymakers will discuss what’s next for the BBB plan with Roundtable members during the organization’s Jan. 25-26 Virtual State of the Industry Meeting (SOI). The featured speakers will include:
- Sen. John Thune (R-SD), who holds the second highest position in Senate Republican leadership;
- Sen. Amy Klobuchar (D-MN), member, Joint Economic Committee and Senate Commerce Committee;
- Sen. Catherine Cortez Mastro (D-NV), member, Senate committees – Finance, Banking, and Energy;
- John Kerry, President Biden’s Special Envoy for Climate and former Secretary of State; and
- Larry Summers, former Secretary of the Treasury and former Director of the White House National Economic Council.

Mr. Summers’ discussion will include the growing importance of environmental, social and corporate governance (ESG) issues for private sector businesses.
One policy example of the growing influence of ESG factors is a proposed rule expected soon from the Securities and Exchange Commission (SEC) on new reporting disclosures quantifying financial risks related to climate. (Roundtable Weekly, Oct. 1, 2021 and Wall Street Journal, Jan. 19, 2022)

BlackRock CEO Larry Fink, above, this week explained the need for businesses to make ESG an essential part of their decision-making process in his annual letter to CEOs. His letter states, “As stewards of our clients’ capital, we ask businesses to demonstrate how they’re going to deliver on their responsibility to shareholders, including through sound environmental, social, and governance practices and policies.” (New York Times and Washington Post, Jan. 18)

The Roundtable’s SOI Meeting will also address market conditions and feature detailed policy advisory committee presentations in the areas of sustainability, tax, homeland security and capital and credit.

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Build Back Better Act Stalls as Congress Raises Debt Ceiling; Fed Signals Interest Rate Hikes Next Year

Posted on December 17, 2021October 27, 2023 by Trey Jackson

Senate action on the House-passed multitrillion dollar Build Back Better (BBB) Act (H.R. 5376) stalled this week as Democrats continued negotiations on the scope and scale of the legislation. (The Guardian, Dec. 16 and BGov, Dec. 15).

BBB Issues

A significant hurdle to progress on the BBB bill are ongoing negotiations between President Biden and congressional leadership with Senate Energy Committee Chairman Joe Manchin (D-WV) – one of the key Democratic centrist swing votes needed to pass the bill under budget reconciliation rules. (CNBC, Dec. 15)
“The talks between [Biden] and Manchin have been going very poorly. They are far apart,” according to a Dec. 15 Politico report. The article also quotes Sen. Tim Kaine (D-VA), who stated, “[Biden and Manchin] may have very different views about timing. It’s less about whether, than about when and how much.”
Democrats also remain split over how BBB legislation would resolve policy issues such immigration and SALT – the limit on the federal deduction for state and local taxes. (Bloomberg, Dec. 13)
Senate Majority Leader Chuck Schumer (D-NY) and House Speaker Nancy Pelosi (D-CA) predicted this month that Congress would pass the BBB Act before Christmas. (Wall Street Journal, Dec. 15 and AP, Dec. 16)
President Biden acknowledged in a statement yesterday that his BBB agenda is unlikely to pass this year and that Democrats will work to finish it “over the days and weeks ahead.” (The White House, Dec. 16)

BBB and CRE

Senate Finance Chairman Ron Wyden (D-OR) on Dec. 11 released statutory language for BBB Act measures that fall under the Finance Committee’s jurisdiction, including tax provisions.
The committee’s language does not include a complex tax proposal that would impose mark-to-market taxation on annual, unrealized gains. Chairman Wyden’s specific legislative proposals to impose an income limit on the sec. 199A pass-through deduction (July 2021), tax carried interest as ordinary income (Aug. 2021) and reform partnership taxation (Sept. 2021) are also excluded. These proposals, as introduced, could have a negative impact on real estate investment, entrepreneurial risk-taking, jobs, and local communities.
Additionally, the current BBB Act would not limit like-kind exchanges, increase the 20% capital gains tax, or repeal the step-up in basis of assets at death. The key tax issues in the bill are addressed in a Roundtable comparison of the tax-related provisions in the BBB package. (Roundtable Weekly, Oct. 29)
Clean energy tax credits make up the most significant portion of the BBB Act’s climate policies. The Roundtable supports several improvements to the green tax provisions aimed at extending them to certain technologies (e.g., thermal energy storage), ensuring that EV charging incentives cover stations employed in widely available but non-public locations (e.g., apartment building parking lots), and incentivizing building electrification through the use of heat pumps.
The Roundtable on Nov. 16 sent a letter to congressional tax writers detailing five recommendations that would improve green energy tax provisions in the BBB Act affecting real estate. (Roundtable Weekly, Nov. 19)

Debt Ceiling and Fed Action

President Biden yesterday signed legislation to raise the debt ceiling by $2.5 trillion, averting default on the nation’s debt and pushing the issue beyond the November 2022 mid-term elections. (Investopedia, Dec. 16)
The debt ceiling bill cleared the Senate Dec. 15 on a party-line vote of 50-49, and the House passed it the following morning on a mostly partisan 221-209 tally. (The Hill and CNBC, Dec. 16)
Federal Reserve Chairman Jerome Powell on Wednesday announced the Fed will wind down its bond-buying program by March instead of June – paving the way for potential interest rate hikes starting in the spring. Powell said the Fed could raise interest rates three times next year as it responds to elevated inflation. (Commercial Property Executive, Dec. 17 | GlobeSt, Dec. 16 | Wall Street Journal, Dec. 15)

Monetary and fiscal policy will be a focus of discussion at The Real Estate Roundtable’s all-member State of the Industry Meeting on Jan. 25-26 in Washington, DC.

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Senate Raises Debt Ceiling; Democrats Face Tight Deadline to Pass Build Back Better Act by Christmas

Posted on December 10, 2021October 27, 2023 by Trey Jackson

The Senate approved a procedural bill last night to raise the national debt ceiling without the risk of a Republican filibuster. The House and Senate plan to consider a subsequent bill within days that will increase the debt limit by more than $30 trillion, thereby avoiding a national default and delaying the next fiscal cliff until after the November midterm elections. (Wall Street Journal | Punchbowl News | Reuters, Dec. 9)

Hurdles Await BBB Act

The expected increase to the debt limit will also allow Senate Democrats to focus on the House-passed $1.7 trillion Build Back Better (BBB) Act.
Senate Majority Leader Chuck Schumer (D-NY) and House Speaker Nancy Pelosi (D-CA) this week predicted that Congress will pass the social and climate package before Christmas. However, numerous hurdles could push congressional action on the BBB Act into 2022. (The Hill, Dec. 8)
Today, the Congressional Budget Office reported that the BBB Act would add $3 trillion to the federal deficit over the next 10 years if its major provisions are made permanent.
Senate Energy Committee Chairman Joe Manchin (D-WV), below, is one of the key Democratic centrist swing votes needed to pass the BBB Act under budget reconciliation rules, which allow Congress to pass legislation with only 51 votes in the Senate.
Manchin reiterated his reluctance to vote for the package this week, stating “the unknown” of inflation “is much greater than the need” for Democrats to move on their climate and social spending bill now. (Marketwatch, Dec. 8 and Wall Street Journal, Dec. 7)
Additionally, the Senate parliamentarian is reviewing the BBB Act to determine if it conforms to reconciliation rules, which require that all the bill’s provisions directly impact the federal budget. (Indivisible, The Senate’s Byrd Rule)
Another significant hurdle is whether potential changes to the BBB bill can resolve existing policy differences among Democrats on the state and local tax deduction (SALT), Medicare expansion and immigration. (CQ and BGov, Dec. 9)
If the Senate passes a bill with changes, it likely will need to go back to the House for another vote before it reaches President Biden’s desk. (Roundtable Weekly, Nov. 19)

BBB and CRE

The current BBB bill – when compared to the President’s budget and the bill passed by the House Ways and Means Committee in September – reflects major progress on a number of tax issues important to real estate and prioritized by The Real Estate Roundtable. (Roundtable Weekly, Oct. 29)
The current bill would not limit like-kind exchanges, increase the 20% capital gains tax, or cap eligibility for the 20% pass-through business income deduction. It also does not include changes in the tax treatment of carried interest or repeal the step-up in basis of assets at death. The key tax issues in the bill are addressed in a Roundtable comparison of the tax-related provisions in the BBB package.
Clean energy tax credits make up the most significant portion of the BBB Act’s climate policies. The Roundtable on Nov. 16 sent a letter to congressional tax writers detailing five recommendations that would improve green energy tax provisions in the BBB Act affecting real estate. (Roundtable Weekly, Nov. 19)

The BBB Act’s potential impacts on tax and climate policy issues of importance to CRE will be topics for discussion at The Roundtable’s Jan. 25-26 State of the Industry Meeting in Washington, DC.

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

Posted on September 11, 2021October 27, 2023 by Trey Jackson

red lines to Capitol

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

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

Sept. 15 — Reconciliation Bills Expected

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

Sept. 27 — House infrastructure Vote

House of Reps vote

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

The Roundtable’s summaries of issues affecting CRE that are in play as part of the infrastructure packages include:

October – Federal Government Funding and Debt Ceiling

Funding for the federal government expires Oct. 1 unless an FY22 appropriations bill is enacted. Congress is expected to pass a stopgap spending bill – known as a Continuing Resolution (CR) – that would fund agencies at current levels to avoid a partial government shutdown.

The CR could also include a measure to suspend or raise the national debt ceiling, which would require at least 10 Senate Republican votes to pass under regular order.
Democratic leaders plan to pursue a bipartisan vote to waive the debt limit. (Reuters and PoliticoPro, Sept. 8) However, 46 Senate Republicans pledged in an August 10 letter that they “will not vote to increase the debt ceiling, whether that increase comes through a stand-alone bill, a continuing resolution, or any other vehicle.” (Bloomberg and The Wall Street Journal, Aug. 10)
Congress must address the national debt ceiling by October, according to a Sept. 8 letter from Treasury Secretary Janet Yellen to congressional leaders.

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

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

Posted on November 7, 2020October 27, 2023 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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