Tag: Infrastructure

Op-Ed Calls for Action on Aging Federal Buildings

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Real Estate Roundtable (RER) President and CEO Jeffrey D. DeBoer joined General Services (GSA) Administrator Edward C. Forst and JBG SMITH Chairman and CEO Matt Kelly in a Washington Times op-ed this week, urging Congress to address chronic underinvestment in the federal government’s real estate portfolio as the nation approaches its 250th anniversary. (Washington Times, May 13)

Federal Building Backlog

  • The op-ed warns that the federal government is “depriving one of its largest real estate portfolios of investment,” eroding asset value and driving up long-term costs for taxpayers. (Washington Times, May 13)
  • The authors note that federally owned buildings are deteriorating because GSA lacks timely access to resources for basic upkeep, even as agencies pay rent into the Federal Buildings Fund. (Washington Times, May 13)
  • Administrator Forst reinforced that message during a May 13 Senate Appropriations hearing on GSA’s FY2027 budget request, urging Congress to give GSA full annual access to the fund, stop redirecting it to non-GSA programs, and raise the prospectus threshold for routine repairs. (Senate Appropriations Subcommittee Hearing, May 13)
  • Administrator Forst testified that Congress has diverted $15.6 billion from the Federal Buildings Fund since 2011, while GSA’s repair backlog has increased by 408% to roughly $50 billion, leaving nearly half of its inventory in “fair” or “poor” condition. (Forst Testimony, May 13 | Legis1, May 7)

Why It Matters

  • The op-ed contrasts private-sector real estate management with a federal process that can take more than 400 days just to approve routine repairs—nearly as long as it took to build the Empire State Building. (Washington Times, May 13)
  • “Delayed spending is value destruction,” the authors write. “In the federal system, delays are built into the process.” (Washington Times, May 13)

The op-ed urges Congress to align resources, incentives, and execution authority so GSA can preserve asset value, support federal workers, and protect historic public buildings.

Federal Oversight of Data Centers Ramps Up

Posted on by abigail_grenadier

The North American Electric Reliability Corporation (NERC) issued its highest-level grid alert this week, warning that data centers, crypto mining operations, and other large “computational loads” are creating new reliability risks as electricity demand accelerates across the country.  (NERC, May 4)

Why It Matters

  • NERC is the international regulatory “grid watchdog” that ensures reliability and security of North America’s bulk electricity system.
  • NERC’s Level 3 Essential Action Alert directs grid operators, transmission planners, and utilities to address risks from large loads that can unexpectedly disconnect from the grid or create significant power swings within seconds. (NERC, May 4)
  • The alert follows incidents involving data centers across the East Coast and Texas, where large loads unexpectedly dropped off the grid, raising concerns about frequency, voltage, and overall power system reliability. (Utility Dive, May 5)
  • A Union of Concerned Scientists representative called the alert a “big deal,” noting it is only the third Level 3 alert in NERC’s history. (PoliticoPro, May 4)
  • The alert signals a broader shift toward future data center regulations that could require such large power users to register with NERC, just as entities that own and operate the electric grid must currently do. (PoliticoPro, May 4). Entities that register with NERC must comply with its grid reliability standards.
  • NERC also released voluntary risk-mitigation guidelines while it develops formal reliability standards for data centers and other large loads. (E&E News May 4)
  • Meanwhile, the alert outlines “essential actions” for current NERC registrants, such as stronger modeling of computational loads, more frequent stability studies, and installation of fault-recording equipment to better understand how data centers behave during grid disturbances. Grid planners are asked to respond by Aug. 3. (NERC, May 4)
  • Separately, the Federal Energy Regulatory Commission (FERC) is drafting a proposal that could provide more federal oversight on how large data centers must connect to the power grid. (Latitude Media | E&E News, May 4)

Data Centers & Electricity Demand Growth

  • NERC’s warning comes as data centers face growing scrutiny over their energy use, infrastructure impacts, and effects on electricity costs. (NYT, April 27)
  • Eleven states have proposed legislation since late 2025 to restrict or ban data center development, while Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) have introduced legislation to pause new data center construction nationwide. (Axios, April 5)
  • At a House Energy subcommittee hearing last week, witnesses argued that large-load customers such as data centers should cover the full incremental costs of the generation, transmission, and distribution upgrades needed to serve them. (Politico | Hearing, April 30)
  • Separately, the U.S. Green Building Council (USBGC) and eight partner organizations launched the Greening AI Data Centers Coalition to coordinate on non-governmental sustainability standards for AI data centers, including performance criteria for energy, carbon, water, waste, biodiversity, and community impact. (USGBC, April 22)
  • Data centers are not the only source of rising power demand, but they are accelerating a broader challenge: the nation needs more generation, more transmission, faster permitting, and better grid planning to support economic growth, housing development, and U.S. technological leadership. (NYT, April 27)

Electricity Costs & Infrastructure

  • The Chamber noted that rising demand alone does not determine electricity costs. States with major data center hubs, including Virginia, Texas, and North Carolina, continue to have electricity rates below the national average, underscoring the importance of generation mix, infrastructure capacity, and state-level policy decisions. (Chamber of Commerce, May 5)
  • Infrastructure bottlenecks are adding to the challenge. Wood Mackenzie estimates the U.S. electrical equipment market tied to data centers could more than triple from $20 billion to $65 billion by 2030, while shortages of transformers and other equipment have stretched lead times to 18 to 36 months and pushed prices up as much as 20 percent. (Wood Mackenzie, April 28)

Roundtable View

  • The Real Estate Roundtable (RER) has consistently emphasized that grid reliability is essential to expanding the nation’s housing supply, spurring new real estate development, supporting economic growth, and advancing U.S. technological leadership.
  • RER supports a national “all of the above” energy strategy that invests in building efficiency, grid modernization, faster permitting, and innovation across all energy sources. (RER’s Spring Policy Priorities-Energy)

Policymakers should continue advancing permitting reforms to accelerate construction of transmission lines, pipelines, and generation plants—helping reduce delays, expand

Roundtable Releases 2025 Annual Report

Posted on by abigail_grenadier

The Real Estate Roundtable (RER) is pleased to share our 2025 Annual Report, A New Era for America’s Buildings: Policy to meet increased energy demands, new technology, and evolving living and working environments.

Roundtable Leadership

  • This year’s report highlights how RER’s engagement drove policy wins in tax, capital and credit, housing, energy, and homeland security, amid one of the most intense legislative years in recent memory.
  • It also underscores commercial real estate’s vital role in powering jobs, growth, and communities nationwide, while ensuring our industry’s trusted voice is heard at the highest levels in Washington.
  • “The pace and complexity of policy this past year has been unprecedented, requiring rapid and well-coordinated responses,” said Jeffrey DeBoer, RER President and CEO. “Thanks to the engagement and expertise of our members, policy committees and national real estate partners, we have met each legislative challenge with substance, speed and credibility. I believe the past 12 months have been among the most challenging and most successful in our history.”
  • “In the year ahead, we will continue to evolve how we communicate our mission, align our membership with the future of the industry and focus on the most urgent issues,” said Kathleen McCarthy, RER Chair and Global Co-Head of Blackstone Real Estate. “Real estate anchors our communities and touches every part of American life—from where people live and work to how businesses grow. As the nation faces a housing crisis and urgent energy challenges, public policy must support a strong, resilient real estate sector that drives solutions, fuels economic growth and improves quality of life and opportunity for all.”

Explore the 2025 Report

  • RER’s FY2025 Annual Report details the organization’s mission and recent activities, and offers potential policy solutions to today’s pressing and far-reaching industry challenges, including:

  • Intro — featuring Q&A with Kathleen McCarthy and Jeffrey DeBoer

Printed copies of the Annual Report are currently being mailed to members. If you would like additional copies, please email agrenadier@rer.org

Senate Advances FY’26 Spending Bills Preserving Key Transportation, Housing and EPA Programs

Posted on by abigail_grenadier

The Senate Appropriations Committee on Thursday advanced bills to fund rental assistance, transit-oriented development loans, ENERGY STAR, and other key programs important to real estate, for the federal fiscal year that starts Oct. 1. The measures come as congressional leaders rush to complete appropriations work ahead of the Sept. 30 funding deadline to avoid a government shutdown.

HUD Programs        

  • The full Senate Appropriations committee passed the “T-HUD” bill to fund the Departments of Transportation and Housing and Urban Development, on a strong bipartisan vote (27-1). (Senate Press Release, July 24) (PoliticoPro, July 24)
  • The bill allocates $73.3 billion overall to HUD—maintaining or increasing funding for rental assistance, homelessness services, and economic development. (Bill Summary | Text )
  • Project-based rental assistance would receive $17.8 billion, a roughly $900 million increase above FY25 enacted levels. This funding provides a full renewal of housing contracts serving about 1.2 million households.
  • Tenant-based rental assistance would receive $33.9 billion to renew Section 8 vouchers. (THUD bill report, p. 115) The Senate’s funding levels contrast with the Trump Administration’s May 2 proposal to significantly cut both tenant- and project-based assistance.
  • The Community Development Block Grant (CDBG) program would receive $3.1 billion, with $1.2 billion allocated for the HOME Investment Partnership program.
  • Last week, the House Appropriations Committee passed its version of T-HUD funding (Bill Text | Summary). The full House of Representatives has yet to vote on it. (Roundtable Weekly, July 18)

DOT Programs

  • The U.S. Department of Transportation (DOT) would receive $26.5 billion under the Senate T-HUD bill. (Senate press release, July 24).
  • This includes a modest increase (over current FY levels) for the Build America Bureau (BAB), which oversees the TIFIA/RRIF federal loan programs. These programs can provide favorable, long-term, low-interest federal loans for transit-oriented developments, including housing and property conversions near mass transit. (FAQs)
  • The funding bill’s underlying report (p. 22) explains that DOT and HUD shall establish a “task force” to improve the TIFIA/RRIF loan process, with a report due back to the House and Senate on ideas for removing “administrative and statutory barriers” to access financing.

EPA – ENERGY STAR

  • The Senate’s bill text specifies $36 million next fiscal year, for the popular ENERGY STAR program, recognizing leadership in energy-efficient buildings, homes, and products.
  • The underlying report language for the Senate bill states that the Appropriations Committee “recognizes the value of and continues to support ENERGY STAR” – with a directive for EPA to “report back” on its plans for the program’s future implementation.
  • On the House side on Tuesday, the Appropriations Committee likewise showed support for ENERGY STAR. It passed a “manager’s amendment” on voice vote, instructing EPA to fund ENERGY STAR in FY’26. (PoliticoPro, July 22)
  • RER has long urged the “business case” to support the ENERGY STAR program. It is working with multi-industry partners in the real estate, manufacturing, consumer tech, and retail sectors to explain to Congress and the Administration why ENERGY STAR is critical to the national “energy dominance” agenda. (Roundtable Weekly, June 6; May 23).  

Agency Reorganizations

  • It is not yet clear how any FY’26 funds appropriated by Congress may interact with particular internal plans from federal agencies to reorganize and eliminate programs.
  • An 8-1 decision in July by the U.S. Supreme Court allows the Trump administration to move forward with large-scale staff reductions and structural overhauls across 19 federal departments. (Politico, July 8)
  • As part of government-wide efforts triggered by the DOGE Executive Order, restructuring plans and layoffs are under consideration at the EPA. (Politico, July 17)

What’s Next

  • Senate Majority Leader John Thune (R-SD) has indicated that he wants to sign as many spending bills into law as possible, then use a short-term stopgap measure to cover the remaining agencies and avert a shutdown before the Sept. 30 deadline. (PoliticoPro, July 23)
  • Any specific agency reorganization and staff layoff plans may be released in the coming weeks.

RER will continue to monitor all developments on matters of appropriations and federal agency reorganizations relevant to real estate.

2023 Annual Report – Sustained Strength, Sustained Solutions

Posted on by Trey Jackson

View Full Report – 2023 Annual Report – Sustained Strength, Sustained Solutions

    White House Seeks to Speed Up Infrastructure Implementation

    Posted on by Trey Jackson

    Mitch Landrieu -- White House Infrastructure Coordinator

    A White House “Accelerating Infrastructure Summit” on Oct. 13 showcased actions by the administration to hasten infrastructure project construction by improving coordination with mayors and governors. (Summit video and White House Action Plan)

    Accelerating IIJA Investment

    • Mitch Landrieu, the White House’s infrastructure coordinator (photo above) stated, “With over 90% of Bipartisan Infrastructure Law funding being delivered by non-federal agencies, our state, tribal, regional, territorial, local and industry partners must also find ways to accelerate the delivery of infrastructure.” (ABC News, Oct. 13)
    • The plan—funded under the $1.2 trillion bipartisan Infrastructure Investment and Jobs Act (IIJA) enacted last November and supplemented by the Inflation Reduction Act in August—is the most significant investment in infrastructure since the interstate highway initiative during the Eisenhower administration. The Roundtable strongly backed the IIJA as it moved through the legislative process. (Roundtable Weekly, Nov. 12, 2021)
    • The IIJA broadens access to federal funding programs by targeting resources toward communities. The administration launched a webpage on Grants.gov and a Technical Assistance Guide to help communities with infrastructure project resources, from grant writing to funding eligibility requirements. A web-based interactive map also shows where IIJA funds have been disbursed in communities across the nation.

    On Time, On Task, and On Budget

    Cover -- Infrastructure Acceleration Report

    The Roundtable continues to support federal transportation infrastructure investments to spur economic growth, support local communities, and enhance America’s competitiveness. (Roundtable Weekly, May 20 and Roundtable’s 2022 Policy Agenda)

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    Senate Democrats Strike Deal to Speed-Up Federal Permits for Major Energy Projects

    Posted on by Trey Jackson
    Department of Energy building in Washington, DC

    Sen. Joe Manchin (D-WV) and Democratic Senate leadership reached a side deal on federal energy permitting this week, separate from the larger reconciliation bill agreement addressing climate, taxes, and drug pricing reform. (PoliticoPro, One-page summary of agreement and Washington Post, Aug. 1)

    Energy Permitting Provisions

    • An outline of the energy permitting agreement shows that an eventual bill would direct the President to designate and periodically update a list of at least 25 high-priority energy infrastructure projects and prioritize their approvals by federal agencies.
    • The agreement could lead to policies that accelerate federal approvals for long-distance transmission lines needed to help “clean the grid” and deliver renewable energy generated in rural areas to cities.
    • The agreement would also limit National Environmental Policy Act (NEPA) reviews for major federal projects to two years, and one year for lower-impact projects. NEPA requires federal agencies to assess alternatives to their proposed actions that have lesser environmental impacts. (EPA fact sheet)
    • The Democratic senators agreed with House Speaker Nancy Pelosi (D-CA) that the permitting agreement could be added to a stopgap spending measure to fund the government after Sept. 30. (BGov, Aug. 3)
    • In May, the Biden administration released a Permitting Action Plan to strengthen and accelerate Federal permitting and environmental reviews. Another package of White House changes to permitting rules is expected later this year. (Roundtable Weekly, April 22 | White House news release, May 11 | BGov, Aug. 4).

    Climate Financial Risk Tool

    OFR Climate and Analytics Hub
    • The Treasury Department launched its Climate Data and Analytics Hub pilot, which aims to provide regulators with data, software and tools to gauge climate change risk to the financial system. (Treasury Department Fact Sheet)

    Initial access to the pilot will be limited to the Federal Reserve Board of Governors (FRB) and the Federal Reserve Bank of New York (FRBNY), with the goal of expanding access to all of the Financial Stability Oversight Council (FSOC) member agencies.

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    2022 Annual Report – Building a More Resilient and Dynamic Future

    Posted on by Trey Jackson

    View Full Report – 2022 Annual Report – Building a More Resilient and Dynamic Future

    Biden Administration Marks Six-Month Anniversary of Bipartisan Infrastructure Law

    Posted on by Trey Jackson

    Biden cabinet members IIJA

    White House Infrastructure Coordinator Mitch Landrieu led a group of Biden administration cabinet officials this week in recognizing the six-month anniversary of the $1 trillion infrastructure package, noting the 4,300 projects underway with more than $110 billion in allocated funding. (White House Fact Sheet and YouTube news conference, May 16) 

    Implementation Efforts 

    • The Biden Administration has published an interactive map showing where the $110 billion will be spent. Of that total amount, $52.5 billion is for federal highway funding this fiscal year, $20.5 billion for public transit, and $27 billion over five years for bridges, airports, ports, the electric grid, and other infrastructure programs.
    • Ninety percent of funding authorized by the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) enacted last November will be implemented by governors and mayors. In January, the White House requested state and local leaders appoint infrastructure coordinators to manage the flow of funds. (White House Fact Sheet, May 16)
    • A White House guidebook to IIJA-funded programs released on Jan. 31 provides a key tool for states and local governments to apply for federal grants, loans, and public-private partnership resources under more than 375 infrastructure investment programs.  (The Hill, Jan. 31 and Roundtable Weekly, Feb. 4)
    • Department of Transportation (DOT) Secretary Pete Buttigieg stated on March 28 that the administration’s budget includes $100 million in recommended funding for the Hudson Tunnel commuter rail project, which is part of the Gateway Program, a series of strategic rail infrastructure investments along the Northeast Corridor. (Railway Age, March 29 and The Center Square, March 30) 

    Roundtable Support

    Infrastructure Projects interactive map

    • The Roundtable has long supported federal transportation infrastructure investments to spur economic growth, support local communities and enhance America’s competitiveness. (Roundtable Weekly, Nov. 12, 2021) 
    • The Roundtable’s 2022 Policy Agenda states, “The IIJA allows $550 billion in new infrastructure investments, estimated to create around 2 million jobs per year over the next decade. This long-term investment in physical infrastructure can re-imagine how we can productively move people, goods, power and information from home to work, business to business, community to community – and building to building.” 

    Landrieu noted that many large infrastructure projects funded by the law will take years to build out. “This is going to be Infrastructure Decade,” he said. (Reuters, May 16) 

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    White House Releases Plans to Battle Inflation and Streamline Infrastructure Permitting; Congressional Leaders Urge Swift Implementation of New EB-5 Law

    Posted on by Trey Jackson

    President Biden on inflation

    President Joe Biden this week committed that his administration’s top economic priority is battling inflation. Biden’s efforts to combat rising prices include proposals that would increase taxes on large corporations and the wealthiest Americans – and possibly eliminate Trump-era tariffs on foreign imports. (White House Inflation Plan | News conference video | The Hill, May 10)

    • The Labor Department reported that consumer prices increased 8.3% in April compared to one year ago, as inflation remains near a four-decade high. (Labor Department news release and AP, May 11)
    • Federal Reserve Chair Jerome Powell discussed the Fed’s inflationary goals during an interview this week with Marketwatch, stating, “Whether we can execute a soft landing or not, it may actually depend on factors that we don’t control.” The Fed recently approved the biggest interest hike in 22 years and announced plans for reducing its nearly $9 trillion balance sheet. (CNBC, May 12)
    • Powell also recently stated, “There is a broad sense on the committee that additional 50 basis point increases should be on the table at the next couple of meetings.” He added, “the American economy is very strong, and well-positioned to handle tighter monetary policy.” (Wall Street Journal, May 4)
    • A semi-annual report released this week by the Fed detailed risks to financial stability, pointing to the potential impact of inflation, sharply rising interest rates and the war in Ukraine. The report also flagged a decline in liquidity. “While the recent deterioration in liquidity has not been as extreme as in some past episodes, the risk of a sudden significant deterioration appears higher than normal,” according to the report. (Wall Street Journal, May 9)
    • Powell was approved this week to serve a second term as Fed Chair by a bipartisan Senate vote of 80-19. (Politico, May 12)

    Infrastructure Permitting

    Infrastructure photo Cleveland

    • The White House this week also unveiled a plan to strengthen and accelerate federal permitting and environmental reviews funded by the Infrastructure Investment and Jobs Act (IIJA) passed last November. (White House Fact Sheet, May 11 and Roundtable Weekly, Nov. 12, 2021)
    • The Biden administration said its Permitting Action Plan will improve environmental reviews to avoid duplicity and will create sector-specific teams aimed at speeding permitting and resolve supply chain issues that hinder construction.

    EB-5 Regional Centers

    EB-5 and passport

    • Four congressional leaders wrote a bipartisan letter to Homeland Security Secretary Alejandro Mayorkas this week to counter a statement by the U.S. Citizenship and Immigration Services that existing EB-5 regional centers must apply for recertification. The USCIS  statement, if put into effect, would delay regional center enterprises from seeking new foreign investment pending reapproval. (Congressional letter, May 9)
    • The letter was signed by Senate Majority Leader Chuck Schumer (D-NY), House Judiciary Committee Chair Jerrold Nadler (D-NY), and Senate Judiciary Committee members John Cornyn (R-TX) and Lindsey Graham (R-SC). 
    • Their letter clarified that previously existing regional centers are not required to be recertified under the EB-5 Reform and Integrity Act of 2022 passed last March – but the centers must swiftly meet all of the new law’s anti-fraud and homeland security protections. (EB-5 investors blog, May 10)

    The Roundtable-supported  EB-5 Reform and Integrity Act was the first significant update to the regional center program since its creation by Congress in the early 1990s. (Roundtable Weekly, March 11, Roundtable news release and EB-5 Fact Sheet)

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