Author: abigail_grenadier

What the Government’s Reopening Means for CRE Policy Priorities

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The new stopgap extends government funding only through Jan. 30, leaving appropriators less than two months to complete the remaining FY2026 bills. With the government reopened, housing, permitting, tax, and energy policy issues are again at the forefront of congressional debates. (PoliticoPro, Nov. 13)

Housing

  • HOME Program: House Financial Services Housing and Insurance Subcommittee Chair Rep. Mike Flood (R-NE) plans to restart bipartisan work on legislation updating HUD’s HOME Investment Partnerships Program, which supports affordable housing development for low-income households. Rep. Flood hopes to hold a hearing with HUD Secretary Scott Turner, though the compressed calendar may limit year-end action. (PoliticoPro, Nov. 13) (Roundtable Weekly, July 18, Sept. 5)
  • Housing Supply: The Housing Supply Expansion Act of 2025 (S.2414) is a proposed set of provisions, not a standalone bill, that aims to increase housing supply by modernizing regulations and streamlining development processes. Key components include eliminating the permanent chassis requirement for manufactured homes to lower costs, simplifying environmental review processes, and providing incentives for local governments to adopt more pro-growth housing policies. It is part of broader legislative packages like the ROAD to Housing Act of 2025 (S. 2651) and the Strengthening Housing Supply Act of 2025 (H.R.5077).
  • The ROAD to Housing Act of 2025 (S. 2651), included in the Senate-passed National Defense Authorization Act (NDAA), is on track for a House vote in December, according to House Armed Services Chair Mike Rogers (R-AL). (PoliticoPro, Nov. 14) (Roundtable Weekly, Oct. 17)
  • Portable Mortgages: Federal Housing Finance Agency (FHFA) Director Bill Pulte said Wednesday the administration is actively evaluating portable mortgages, which would allow homeowners to transfer an existing mortgage rate when buying a new home, an attempt to break the current “lock-in effect.” (Bloomberg, Nov. 12)
  • RER President and CEO Jeffrey DeBoer raised a similar supply-focused idea during the National Summit on the Housing Affordability Crisis in September. He noted that affordability challenges stem from constrained supply, limited mobility in the for-sale market, and high development costs—and that portable mortgage–style tools could be part of the solution. (Roundtable Weekly, Sept. 5)

Permitting & Energy

  • Permitting remains one of the most consequential issues for real estate investment, energy transmission, construction timelines, and infrastructure reliability. House Republicans are preparing a major overhaul aimed at accelerating approvals of energy and infrastructure projects. (Roundtable Weekly, Oct. 10)
  • House Outlook: House Natural Resources Chair Bruce Westerman (R-AR) plans to mark up the SPEED Act, co-led by Rep. Jared Golden (D-ME), which would streamline NEPA reviews and limit legal challenges. Democrats secured “permit certainty” language to prevent agencies from indefinitely stalling approvals. (PoliticoPro, Nov. 12)
  • “To keep energy prices from escalating, we have to build more energy and more energy infrastructure, or the supply and demand is going to overpower any policy you can do in Washington D.C.,” Westerman said. “We’ve got to get electricity prices stabilized.” (PoliticoPro, Nov. 12)
  • Senate Outlook: Broader Senate negotiations may include updates to Clean Water Act reviews and reforms to transmission siting, both critical for meeting surging electricity demand from AI data centers and maintaining grid reliability.

Tax and Tariff Policy

  • Section 899: The U.S. continues to push for Organization for Economic Cooperation and Development (OECD) ratification of its carveout from the global minimum tax agreement (Pillar Two). Without an agreement, Republicans could revive legislation to enact “retaliatory tax measures” against foreign companies and taxpayers, including real estate investors, that reside in countries deemed to impose discriminatory taxes. (PoliticoPro, Nov. 13)
  • Over the weekend, President Trump floated the idea of issuing tariff rebate checks to American taxpayers, a “dividend” he suggested could total at least $2,000 per person, excluding high-income households. (ABC News | Bloomberg, Nov. 10)
  • These proposals have renewed speculation that Congress may pursue a tax package next year. A tax bill, pursued through budget reconciliation rules, could be a vehicle for other tax proposals related to health care, housing, and affordability issues.

Roundtable on the Road

  • This week, Jeffrey DeBoer participated in the Stanford Professionals in Real Estate (SPIRE) 2025 SREC Fall Conference in California with RER board member Michael Lowe (Co-CEO, Lowe), where he discussed the reopening of the government, the path ahead on appropriations, and RER’s policy priorities.
  • He also highlighted how recent election results have intensified focus on housing affordability, permitting reform, and practical policy solutions that support real estate investment and community growth.

RER will continue working with lawmakers to provide insights and advance practical solutions as Congress moves into a compressed legislative window.

Government Reopens After Record Shutdown; Key Housing and Insurance Programs Restored

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The federal government reopened late Wednesday after a 43-day shutdown, the longest in U.S. history, as Congress approved a short-term funding bill keeping agencies running through Jan. 30, 2026.  (The Hill, Nov. 13)

State of Play

  • The Senate approved the bipartisan package Monday night in a 60–40 vote, with seven Democrats and Angus King (I-ME) joining Republicans to advance the deal. Sen. Rand Paul (R-KY) was the only Republican “no” vote. (Punchbowl News, Nov. 12)
  • The House passed the measure on a 222–209 vote, with six Democrats joining all but two Republicans, on Wednesday night. President Trump signed the bill hours later, ending weeks of halted federal services, frozen benefits, and widespread economic disruptions. (Washington Post, Nov. 12)
  • “This is no way to run a country,” Trump said while signing the bill that ended the shutdown. “I hope we can all agree the government should never be shut down again.” (Roll Call, Nov. 12)
  • The agreement includes full-year FY2026 appropriations for Agriculture, Veterans Affairs, and the Legislative Branch, while extending funding for all other agencies for 11 additional weeks. The deal reverses thousands of federal layoffs proposed during the shutdown and guarantees back pay for more than 1.25 million furloughed or unpaid federal employees. (Punchbowl News, Nov. 13)
  • In exchange, Senate Majority Leader John Thune (R-SD) guaranteed Senate Democrats a mid-December vote on extending the Affordable Care Act’s enhanced tax credits. Extending the health insurance subsidies was the Democrats’ primary demand during the shutdown. Speaker Mike Johnson (R-LA) made no promise for a similar vote in the House.  (Politico, Nov. 12)

What’s Restored: NFIP, HUD Programs, Federal Services

  • National Flood Insurance Program (NFIP): The NFIP, which lapsed during the shutdown, has been temporarily reauthorized through Jan. 30. New policies can now be issued and existing policies renewed, removing a major barrier for commercial and residential transactions. This is the program’s 34th short-term extension since 2017 as lawmakers continue pursuing a long-term fix.
  • Section 8 & HUD Rental Assistance: HUD is authorized to repurpose carryover funds within the Housing Choice Voucher Program to ensure the full renewal of existing rental assistance at current fair market rents through Jan. 30. This measure prevents disruptions for property owners and the millions of low-income households relying on stable voucher support. (PoliticoPro, Nov. 11)
  • Other Federal Operations: SNAP benefits for 42 million Americans will resume in full, while air traffic control, TSA operations, farm loan processing, and other federal services return to normal as national parks and benefits offices reopen. The agreement also halts proposed federal layoffs through the end of January.

What’s Next

  • “Reopening the government is a welcome and necessary step that restores stability to federal operations, housing programs, and the broader economy,” said Jeffrey DeBoer, President and CEO of The Real Estate Roundtable. “It also restores the federal economic data that lenders and investors rely on to plan and facilitate transactions.”
  • Major hurdles remain, including the lack of an agreed-upon topline spending level, the Senate’s push to advance a five-bill package that includes Transportation-HUD, and the House’s need to accelerate committee work after weeks of inactivity.
  • FY2026 funding bills for Energy, EPA, Homeland Security, State, and Treasury/IRS still require difficult bipartisan negotiations.

Another shutdown is possible if Congress fails to meet the Jan. 30 deadline.

Kathleen McCarthy to Depart Blackstone

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Blackstone announced this week that Kathleen McCarthy, global co-head of Blackstone Real Estate, will step down from the firm at the end of the year after an impactful 15-year tenure. As Chair of The Real Estate Roundtable (RER), she will continue to lead the organization’s policy agenda, member engagement and industry outreach. (Bloomberg | CoStar, Nov. 11)

  • McCarthy said: “It is a privilege to serve as chair of The Real Estate Roundtable and work positively alongside industry leaders I deeply respect. I look forward to continuing to do so as the next chapter in my professional career evolves.”
  • Jeffrey DeBoer, RER President and CEO, stated, “Kathleen’s leadership of The Roundtable will continue to strengthen our advocacy program, enhance service to our membership, and deliver positive national policy results for the industry.”

Next on RER’s meeting calendar is the all-member State of the Industry (SOI) Meeting, which will include policy advisory committee sessions, on January 21–22, 2026, in Washington, DC.

NEWS: Commercial Real Estate Confidence Holds Steady as Market Stabilizes, Q4 Sentiment Index Shows

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(WASHINGTON, D.C.) — The Real Estate Roundtable’s (RER) Q4 2025 Sentiment Index registered an overall score of 67, equivalent to the prior quarter, reflecting that commercial real estate executives’ sentiment has shifted from caution toward guarded optimism as markets stabilize, transaction activity resumes, and expectations build for easing interest rates in 2026.

The Current Index rose one point to 64, while the Future Index dipped slightly to 69, together indicating confidence that the worst disruptions of recent years have passed—even as policy uncertainty and uneven capital access continue to shape near-term decision-making.

Industry leaders credited easing rate pressures and increased market activity for boosting optimism, despite tariffs and shifting policy signals posing persistent challenges.

“Real estate executives see encouraging momentum,” said Jeffrey DeBoer, RER President and CEO. “Roundtable members are reporting steady improvement and renewed confidence across sectors. Despite improvements, tariffs continue to drive up development costs and complicate business planning. Moreover, the record-long government shutdown is disrupting infrastructure and construction permitting, and access to current economic data that companies rely on to plan. Clear, consistent, and coordinated policies from Washington are essential to unlock capital and support long-term economic growth in communities nationwide.”

The Q4 Sentiment Index topline findings include:

  • The Q4 2025 Real Estate Roundtable Sentiment Index registered an overall score of 67, equivalent to the previous quarter. The Current Index registered a score of 64, a 1-point increase over Q3 2025. The Future Index posted a score of 69 points, a decrease of 2 points from the previous quarter, reflecting sentiment that the market has largely stabilized and is now transitioning from caution to guarded optimism. Many participants anticipate stronger transaction activity in 2026 as interest rates ease and confidence builds, yet acknowledge that political and policy uncertainty continue to temper near-term enthusiasm.
  • Although perspectives vary by asset class, overall market sentiment remains positive. Only 13% of respondents believe that general market conditions are worse than this time last year, while 63% believe that general market conditions are better than this time last year. More than two-thirds (70%) of Q4 survey participants expect general market conditions to show improvement one year from now. Leaders reported continued strength in residential sectors, alongside steady improvement in retail and hospitality. Office remains the most challenged asset class, though signs of stabilization are emerging in top-tier markets.
  • Forty-three percent (43%) of respondents believe asset values are roughly unchanged compared to a year ago. A large minority of participants see green shoots, with 42% believing asset prices have increased and only 15% believing they have declined. Looking ahead, the outlook is optimistic: 72% expect asset prices to rise over the next year, 24% believe asset values will remain stable, and only 4% anticipate a slight decline.
  • Perceptions on the availability of equity capital relative to last quarter are muted, although nearly half (48%) of respondents still believe equity availability is better compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 78% said the availability of debt capital has improved from last year. Looking forward, 64% of respondents believe that equity capital availability will be better in one year and 56% believe debt capital availability will be better.

Sample responses from participants in the Sentiment Index’s Q4 survey include:

“Market conditions have strengthened, and real estate has benefited from overall market optimism, driven by expectations of continued rate cuts on the short end of the curve and confidence that the economy will avoid a recession.”

“Equity is coming in, but real estate has lots of competition among infrastructure, private markets, etc.”

“Tariffs have been a disaster for our industry, not only because the cost of materials is higher, but also because of the uncertainty they create which significantly hampers the ability to make decisions.”

Data for the Q4 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in October. See the full Q4 report.

The Real Estate Roundtable (RER) brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending and management firms with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.

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EPA’s Reorganization Plan Includes ENERGY STAR

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The U.S. Environmental Protection Agency (EPA) released its long-awaited reorganization of various program offices on Monday. It lists ENERGY STAR–the voluntary federal public-private partnership promoting efficiency in buildings and appliances–as falling under the newly structured Office of Radiation and Indoor Air (“ORIA”). (EPA website | E&E News, Nov. 3)

Agency Restructuring

  • The new ORIA office, which includes ENERGY STAR, is part of EPA’s ongoing “comprehensive restructuring efforts” and staff reduction plans announced this summer. (EPA press release, July 18)
  • For example, EPA reorganized its research office in October–carrying through on Administrator Lee Zeldin’s May testimony to Congress. (E&E News, Oct. 20)
  • EPA’s new structure acts on a Feb. 26 memo of the White House Office of Management and Budget (“OMB”) directing all agencies to implement plans to reorganize, streamline, and reduce federal staff. The OMB memo itself stems from the DOGE Executive Order signed by President Donald Trump on Jan. 20.

Industry Advocacy

  • In May, Zeldin stated to Congress that EPA was considering whether it might be appropriate to privatize ENERGY STAR. This followed a proposed White House budget to eliminate a now-defunct EPA office that previously housed ENERGY STAR. (Roundtable Weekly, May 9)
  • RER and leading real estate organizations responded with letters to EPA (April 4) and the Department of Energy (May 14), highlighting ENERGY STAR’s importance for U.S. buildings and explaining why ENERGY STAR should remain a federal program. (Roundtable Weekly, May 23)
  • A multi-industry coalition followed suit. Trade associations representing real estate, product manufacturers, consumer technology, and retailers took the issue to Congress. Their June 6 letter emphasizes that ENERGY STAR is a statutorily required federal program that cannot be privatized. (Roundtable Weekly, June 6)
  • These efforts resulted in ENERGY STAR funding approved by House and Senate Appropriations Committees. Both chambers have clearly signaled that ample funds for EPA’s buildings and appliance partnership program are available once the government reopens. (Roundtable Weekly July 25; Sept. 5)

ENERGY STAR Continues During Shutdown

  • While EPA’s funding bill for FY ’26 (that started Oct. 1) has yet to pass the full Congress and reach President Trump’s desk, ENERGY STAR has continued to function amid the ongoing shutdown. For example:
  • The open-access federal contracting database shows that the consultant contract to support ENERGY STAR for commercial buildings is paid through at least July 13, 2026.
  • While ENERGY STAR finds a place in EPA’s new indoor air office–with Congress prepared to fund it, and the program continuing during the shutdown–EPA’s overall reorganization continues. An agency spokesperson reportedly stated, “No final decision has been made at this time” regarding ENERGY STAR’s long-term status. (New York Times, Nov. 1)

RER and our industry partners will continue to track these events closely. The coalition will advocate for EPA to operate the bipartisan, highly successful ENERGY STAR program robustly and efficiently once the government reopens.

Shutdown Stretches Into Second Month as Washington Stalemate Hardens

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The government shutdown, now in its sixth week, continues to strain markets. Despite some bipartisan progress, the path to reopening remains uncertain as the economic fallout spreads across housing, infrastructure, and other sectors.

State of Play

  • Early this week, bipartisan senators began exploring a short-term compromise to pair a continuing resolution (CR) with a vote on extending Affordable Care Act (ACA) subsidies. (CBS News, Nov. 5) 
  • Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) requested a meeting with President Trump, Senate Majority Leader John Thune (R-SD), and House Speaker Mike Johnson (R-LA) to discuss expiring ACA subsidies and a reopening framework. (Politico, Nov. 5)
  • By midweek, a group of Senate Democrats signaled openness to a GOP plan that would extend government funding through January, include an appropriations package, and advance an ACA subsidy vote. (PoliticoPro, Nov. 6)
  • President Trump urged Republicans to “get the government back open immediately,” linking GOP election losses to the stalemate, while Democratic leaders encouraged colleagues not to “cave” to pressure to compromise on key priorities. (CBS News | Politico, Nov. 5)
  • Majority Leader Thune said Republicans are finalizing a “minibus” to serve as the vehicle for a deal, though hurdles remain on both sides. (PoliticoPro, Nov. 6)
  • Expected travel delays remain a potential flashpoint in negotiations, as Transportation Secretary Sean Duffy and FAA Administrator Bryan Bedford said the federal government would reduce airline traffic by 10 percent at 40 locations beginning on Friday if the shutdown continues. (CBS News, Nov. 5)
  • Majority Leader Thune intends to hold a vote to advance a funding package on Friday. Democrats have not signaled broad support for the measure, with progressives pushing to hold out while moderates grow weary of the shutdown’s toll on food aid and travel. (Axios, Nov. 6)

Implications for the Economy & CRE

  • The Congressional Budget Office estimates the shutdown could lower U.S. GDP by $7-$14 billion, contingent on its length. It also anticipates that some losses will be permanent and that fourth-quarter growth may decline by 1-2 percentage points. (CBO, Oct. 29 | Reuters, Oct. 29)

  • As the shutdown continues, federal permitting and financing pipelines remain frozen at HUD and EPA, slowing approvals, infrastructure tie-ins, FHA/HUD loan processing, and other critical CRE project milestones. (CRE, Oct. 29)

  • HUD confirmed this week that it will extend funding for public housing operations and housing voucher payments through December. The move provides short-term relief for property managers and lenders in affordable housing markets, though funding beyond December remains uncertain. (Politico, Nov. 4)

  • CRE leaders note that the economic strain is increasingly tied not to liquidity but to confidence and timing disruptions. CREFC characterizes the situation as a “confidence and timing headwind,” with capital still available yet deployed more cautiously amid growing uncertainty. (CRE Daily, Oct. 29)

  • The ongoing blackout of federal economic data—including jobs and inflation reports—is reinforcing market caution, forcing lenders and investors to rely on private indicators and adopt more conservative underwriting and wider bid-ask spreads. (Bloomberg Law, Nov. 4)

  • Property owners with federal tenants have reported delayed lease renewals and rent payments, creating operational friction and valuation uncertainty. (ENR, Nov. 1)

Supreme Court Weighs Limits on Presidential Tariff Powers

  • Beyond Capitol Hill, the Supreme Court heard oral arguments on Tuesday over whether the International Emergency Economic Powers Act (IEEPA) permits the president to unilaterally impose sweeping tariffs on imports. (ABC News, Nov. 5 | Axios, Nov. 6)

  • A majority of justices, including Amy Coney Barrett and Neil Gorsuch, expressed skepticism that Congress intended to delegate such expansive authority, questioning whether the power to “regulate” imports extends to imposing duties without explicit legislative approval. (New York Times Nov. 5)

  • If the Court ultimately strikes down the broad tariff strategy, market attention will shift to the administration’s contingency plan for reimbursing billions in duties already paid, a move that could deliver meaningful near-term cash-flow relief for import-reliant developers, operators, and suppliers. (AP News | ConnectCRE, Nov. 5)

  • However, uncertainty surrounding the scope and timing of any refund mechanism may continue to influence procurement and budgeting decisions across the CRE sector.

RER continues to urge Congress to move swiftly toward a bipartisan funding agreement that reopens the government, restarts critical permitting and data functions, and ensures continuity for housing, infrastructure, and financial programs essential to real estate investment and economic growth.

Commercial Real Estate Confidence Holds Steady as Market Stabilizes, Q4 Sentiment Index Shows

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The Real Estate Roundtable’s (RER) Q4 2025 Sentiment Index registered an overall score of 67, equivalent to the prior quarter, reflecting that commercial real estate executives’ sentiment has shifted from caution toward guarded optimism as markets stabilize, transaction activity resumes, and expectations build for easing interest rates in 2026.

Topline Findings

The Q4 Sentiment Index topline findings include:

  • The Q4 2025 Real Estate Roundtable Sentiment Index registered an overall score of 67, equivalent to the previous quarter. The Current Index registered a score of 64, a 1-point increase from Q3 2025. The Future Index posted a score of 69 points, a 2-point decrease from the previous quarter, reflecting sentiment that the market has largely stabilized and is now transitioning from caution to guarded optimism. Many participants anticipate stronger transaction activity in 2026 as interest rates ease and confidence builds, yet acknowledge that political and policy uncertainty continue to temper near-term enthusiasm.
  • Although perspectives vary by asset class, overall market sentiment remains positive. Only 13% of respondents believe that general market conditions are worse than this time last year, while 63% believe that general market conditions are better than this time last year. More than two-thirds (70%) of Q4 survey participants expect general market conditions to show improvement one year from now. Leaders reported continued strength in residential sectors, alongside steady improvement in retail and hospitality. Office remains the most challenged asset class, though signs of stabilization are emerging in top-tier markets.
  • 43% of respondents believe asset values are roughly unchanged compared to a year ago. A large minority of participants see green shoots, with 42% believing asset prices have increased and only 15% believing they have declined. Looking ahead, the outlook is optimistic: 72% expect asset prices to rise over the next year, 24% believe asset values will remain stable, and only 4% anticipate a slight decline.
  • Perceptions on the availability of equity capital relative to last quarter are muted, although nearly half (48%) of respondents still believe equity availability is better compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 78% said the availability of debt capital has improved from last year. Looking forward, 64% of respondents believe that equity capital availability will be better in one year and 56% believe debt capital availability will be better.

Roundtable View

  • RER President and CEO Jeffrey DeBoer said, “Real estate executives see encouraging momentum. Roundtable members are reporting steady improvement and renewed confidence across sectors. Despite improvements, tariffs continue to drive up development costs and complicate business planning. Moreover, the record-long government shutdown is disrupting infrastructure and construction permitting, and access to current economic data that companies rely on to plan”
  • He added, “Clear, consistent, and coordinated policies from Washington are essential to unlock capital and support long-term economic growth in communities nationwide.”

Data for the Q4 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in October. See the full Q4 report.

CRE Leaders Convene in Washington to Discuss Policy Priorities, Market Trends, and Bipartisan Solutions

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Industry leaders convened with policymakers at this week’s Fall Roundtable Meeting to address national policies impacting commercial real estate and the broader economy.

Fall Roundtable Meeting

  • The timely discussions focused on bipartisan opportunities in AI, immigration, and permitting reform; as well as tax policy; tariffs and trade relations, persistent inflation and energy costs, and housing supply affordability. (RER’s Fall 2025 Policy Priorities and Executive Summary)
  • Permitting reform and electric grid reliability were top of mind throughout the meeting, with members and policymakers emphasizing the urgent need to modernize infrastructure to meet growing energy demand.
  • The discussions coincided with a bipartisan letter sent to Congress from 13 governors led by Pennsylvania Gov. Josh Shapiro (D) and Oklahoma Gov. Kevin Stitt (R), urging Congress to streamline federal permitting rules, expand interstate transmission, and accelerate the nation’s energy transition. (PoliticoPro | NGA Press Release, Oct. 28)
  • RER Board Chair Kathleen McCarthy (Global Co-Head of Blackstone Real Estate, Blackstone) emphasized connectivity through Roundtable on the Road and member engagement in policy committees. “These touchpoints keep our priorities aligned and ensure we are speaking with one powerful, fact-based voice,” McCarthy said.
  • RER President and CEO Jeffrey DeBoer highlighted RER’s positive advocacy efforts around the One Big Beautiful Bill Act (OB3), including preservation of carried interest, permanent Opportunity Zones, and expansion of the Low-Income Housing Tax Credit. “Those outcomes only happen because of sustained, credible advocacy, backed by the expertise and perspectives our members bring to every discussion,” DeBoer said.

Speakers & Policy Issues

Roundtable members engaged in policy issue discussions with the following guests:

  • Sen. Michael Bennet (D-CO) (Committees: Finance; Select Committee on Intelligence; Rules; Agriculture, Nutrition and Forestry) discussed bipartisan cooperation on immigration reform, housing affordability, and fiscal policy, calling the nation’s housing situation “an affordability crisis.”
  • Sharon Wilson Géno (President, National Multifamily Housing Council) highlighted the Housing Solutions Coalition’s work to educate policymakers on the consequences of rent control and promote data-driven, pro-housing reforms at federal and state levels.
  • Rep. French Hill (R-AR) (Chair, House Financial Services Committee; Permanent Select Committee on Intelligence) outlined congressional priorities on capital formation, digital assets, simplifying federal regulation for community banks, and reauthorization of the Terrorism Risk Insurance Act (TRIA).
  • Rep. Josh Gottheimer (D-NJ) (Committees: Financial Services; Permanent Select Committee on Intelligence) emphasized pragmatic governing coalitions to advance permitting and immigration reforms while maintaining fiscal discipline and strengthening global competitiveness.
  • Ambassador Timmy Davis (Ret.) (Former U.S. Ambassador to Qatar; President & Partner, Irth Capital Management; Senior Advisor, Mavik Capital) and Vik Uppal (Founder and CEO, Mavik Capital) shared insights on international capital flows and global geopolitical factors influencing cross-border real estate investment.

Next on RER’s meeting calendar is the all-member State of the Industry (SOI) Meeting, which will include policy advisory committee sessions, on January 21–22, 2026, in Washington, DC.

Fed Cuts Rates Again as CRE Eyes Relief; Coalition Supports FSOC Reform

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The Federal Reserve on Wednesday approved a second consecutive quarter-point rate cut, lowering the federal funds rate to 3.75-4 percent. Chair Jerome Powell cautioned that another reduction in December is uncertain, suggesting the pace of easing could soon slow.

Fed’s Decision

  • The 10-2 vote saw Governor Stephen Miran favor a deeper half-point cut, while Kansas City Fed President Jeffrey Schmid opposed any reduction. (CNBC, Oct. 29)
  • Policymakers cited rising downside risks to employment amid persistent inflation near 3 percent.
  • Chair Powell noted “strongly differing views” on whether further easing is warranted, signaling a potential pause in December. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it,” he said. (Watch Press Conference)
  • The chair also acknowledged the limited availability of economic data as the ongoing government shutdown has suspended federal data collection and reports.

Housing and CRE Outlook

  • At this week’s Fall Roundtable Meeting, House Financial Services Chair Rep. French Hill (R-AR) noted that persistent inflation continues to weigh on markets, though gradual rate cuts are beginning to ease conditions for housing and credit.
  • Continued monetary easing and the Fed’s balance sheet pivot may still bring modest relief to mortgage costs heading into 2026. (HousingWire, Oct. 29)
  • Economists note that improved credit conditions could stimulate purchase demand and support CRE transaction activity, though affordability challenges persist.

RER Advocacy

  • RER and coalition partners submitted a comment letter to the U.S. House of Representatives this week in support of H.R. 3682, the Financial Stability Oversight Council (FSOC) Improvement Act of 2025. (Letter, Oct. 28)
  • The bill, approved 47-4 by the House Financial Services Committee in Sept, would require FSOC to consult with a company and its primary regulator before designating a nonbank as a Systemically Important Financial Institution (SIFI), which would be subject to heightened prudential regulation and supervision by the Federal Reserve Board. (House Financial Services Committee Vote No. FC-198, Sept. 16)
  • The letter emphasized the importance of an activities-based approach to systemic risk, transparent cost-benefit analysis, and clear procedural guardrails to ensure predictability in financial oversight.
  • This follows a similar letter RER signed in July supporting efforts to restore due-process standards and coordination between FSOC and primary regulators. The letter urged FSOC to rescind its 2023 interpretive guidance and reinstate the Council’s 2019 framework for designating nonbank financial companies. (Letter, July 14)

Basel III Endgame

  • The Fed is circulating a revised Basel III Endgame proposal that would increase capital charges for large banks by 3-7 percent instead of the originally proposed 19 percent. (Bloomberg, Oct. 22)
  • RER strongly opposed the Fed’s original proposal, pointing out the significant economic costs it would incur without clear benefits to the economy, recommending that it be withdrawn and only reissued after further study. (Roundtable Weekly, June 27)

RER will continue to track developments on monetary policies and support measures that preserve liquidity and lending capacity as rate relief remains gradual.

Economic Strain Mounts as Pressure Builds on Congress to End Record Shutdown

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The federal government shutdown, now nearing its fifth week and on pace to become the longest in U.S. history, is showing early signs of bipartisan negotiation after weeks of stalemate. Lawmakers are facing mounting pressure to reach an agreement before critical deadlines affect food assistance and healthcare programs.

State of Play

  • Bipartisan conversations have modestly increased this week as senators search for a path to end the impasse. Senate Majority Leader John Thune (R-SD) said talks “have picked up,” noting that deadlines often spur action. (PoliticoPro, Oct. 29)
  • Despite limited optimism, lawmakers view progress onFY2026 appropriations as a potential vehicle to rebuild trust and advance a reopening framework. Still, with the Senate adjourned and the House out of session, finalizing a deal before key programs lapse remains difficult. (Roll Call, Oct. 29)
  • Near-term pressure points include the exhaustion of Supplemental Nutrition Assistance Program (SNAP) and WIC benefits by the end of October, the start of Affordable Care Act (ACA) open enrollment on Nov. 1, and worsening transportation delays as air traffic controllers and TSA staff miss additional paychecks.
  • Senate Minority Leader Chuck Schumer (D-NY) told reporters Tuesday that he believes Republicans will face “increased pressure to negotiate with us.” (Politico, Oct. 29)
  • House Speaker Mike Johnson (R-LA) has kept the chamber out for more than a month, insisting that Democrats must first agree to reopen the government before broader spending or healthcare talks resume.
  • However, rank-and-file senators from both parties report renewed engagement, with some GOP leaders predicting that centrist Democrats may soon support a compromise. (Politico, Oct. 29)
  • Leader Thune said moderate Democrats are seeking an “off-ramp,” and he is willing to negotiate on extending ACA subsidies but only once the government reopens. Proposals include offering Democrats a vote on their own plan to continue the tax credits beyond December, and a possible meeting with President Trump to discuss ACA subsidies as early as next week. (The Hill, Oct. 30)
  • In a series of Truth Social posts on Thursday, President Trump urged Republicans to eliminate the Senate filibuster, which currently requires 60 votes to advance legislation. Leader Thune has previously rejected changing the rule, calling the threshold “a bulwark against a lot of really bad things.” (CBS News, Oct. 31)

Economic Fallout

  • The Congressional Budget Office (CBO) estimates the shutdown will cost the U.S. economy between $7 billion and $14 billion, depending on its duration, according to a new report released Wednesday. (CBO Letter, Oct. 29)
  • In a letter from CBO Director Phillip Swagel to the Chairman of the House Budget Committee, the nonpartisan agency acknowledged that the real economic impact of the shutdown remains uncertain. (Politico, The Hill Oct. 29)
  • A four-week shutdown would reduce real GDP by $7 billion, rising to $11 billion after six weeks and $14 billion after eight. (Bloomberg, Oct. 29)
  • The CBO estimates the shutdown will reduce real GDP growth by 1 to 2 percentage points, with overall growth expected to recover after 2026—but some losses, particularly from federal worker furloughs, will be permanent.
  • Lawmakers from both parties warn that the economic fallout will deepen if the impasse continues, threatening programs vital to housing, infrastructure, and financial markets.

Path Forward

  • GOP leaders are exploring a continuing resolution (CR) that could extend government funding into mid-January or March, though several versions remain under discussion.
  • Democrats oppose any measure that carries funding into next year without renewing the enhanced ACA subsidies set to expire in December.

RER continues to urge Congress to act responsibly to reopen the government and restore critical housing, insurance, and economic programs essential to real estate investment and growth.