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Stabilizing Market Conditions Drive Optimism in Q3 Sentiment Index

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(WASHINGTON, D.C.) — The Real Estate Roundtable’s Q3 2025 Sentiment Index reflects increased confidence among commercial real estate executives as market conditions stabilize and sector-led growth emerges. The Q3 Index posted an overall score of 67, a 13-point increase from the previous quarter, with notable increases in both the Current (63) and Future (71) indices.

RER President and CEO Jeffrey DeBoer said, “Our Q3 Sentiment Index results show that market conditions have continued to stabilize in a meaningful way, supported by improved supply and demand. Commercial real estate executives are increasingly optimistic that the next 12 months will bring continued improvement. That said, certain property types continue to face headwinds, and capital access remains uneven across markets and sectors. Even so, the prevailing sentiment is that stability is returning and opportunities are emerging.”

While challenges remain, industry leaders see meaningful opportunities ahead, particularly in multifamily, data centers, and select office markets.

He added, “The provisions in the One Big Beautiful Bill Act should help accelerate this momentum— expanding housing supply, revitalizing communities, spurring job-creating investment nationwide, and strengthening the broader economy. Coupled with improving debt capital availability and stabilizing asset values, these policies set the stage for renewed growth. Moving forward, industry leaders and policymakers must continue to work together to promote investment, ensure credit access, and address persistent supply-demand imbalances in housing and other high-need property sectors.”

The Q3 Sentiment Index topline findings include:

  • The Q3 2025 Real Estate Roundtable Sentiment Index registered an overall score of 67, an increase of 13 points over the previous quarter. The Current Index registered 63, a 13-point increase over Q2 2025. The Future Index posted a score of 71 points, an increase of 13 points over the previous quarter, reflecting sentiment that operating conditions have largely stabilized: occupancy and demand are holding, and values appear to have bottomed. Participants expect modest, sector-led growth, yet acknowledge lingering headwinds for weaker property types.
  • Sentiment around general market conditions has markedly increased since last quarter (Q2). Only 10% of respondents believe that general market conditions are worse than this time last year, and 56% of respondents believe that general market conditions are better than this time last year. Almost three- quarters (73%) of Q3 survey participants expect general market conditions to show improvement one year from now. Multifamily, data centers, and NYC office shine while industrial supply is overbuilt.
  • Half of respondents believe asset values are roughly unchanged compared to a year ago. The remaining respondents are divided, with 32% believing asset prices have increased and 18% believing they have declined. Looking ahead, the outlook is optimistic: 59% expect asset prices to rise over the next year, 32% believe asset values will remain stable, and only 9% anticipate a slight decline.
  • Perceptions on the availability of equity capital relative to last year are muted, with 50% of respondents believing equity availability is unchanged compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 65% said the availability of debt capital has improved from last year. Looking forward, 55% of respondents believe that equity capital availability will be better in one year and 48% believe debt capital availability will be better.

Survey participants noted that the market is increasingly sector-specific, with performance tied closely to location, asset quality, and loan maturity schedules. Comments highlighted stabilizing fundamentals, renewed deal competition, and a narrowing bid-ask spread in transactions.

Some sample responses from participants in the Sentiment Index’s Q3 survey include:

“The market feels largely stable. There is still uncertainty about what lies ahead, yet conditions are far steadier than we have seen in recent years.”

“Real estate is a local business, and this cycle underlines how unique every market and product type really is. There is no ‘one-size-fits-all’ answer; it all depends on where you are, how favorable your product is, and the date of your loan maturity.”

“Debt is liquid with tight spreads; on the equity side it’s a ‘haves and have-nots’ market. Quality product will still get funded.”

Data for the Q3 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in July. See the full Q3 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.

The Real Estate Roundtable Mourns Victims of Midtown Manhattan Shooting

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The Real Estate Roundtable (RER) is deeply saddened by the senseless loss of the four individuals who were tragically struck down by a gunman on Monday in Midtown Manhattan. We mourn the loss of these brilliant professionals, dedicated public servants, and treasured family members and extend our deepest condolences to their families, friends, colleagues, and communities.

  • Among those killed were employees from member companies, Blackstone and Rudin Management. The victims include Wesley LePatner, 43, a Yale graduate and senior managing director at Blackstone who led Core+ Real Estate and served as CEO of Blackstone Real Estate Income Trust (BREIT), and Julia Hyman, 27, a Cornell graduate working as an associate at Rudin Management. (WSJ, July 29) (NYT, July 29)
  • RER President and CEO Jeffrey DeBoer issued this statement:
  • “The Real Estate Roundtable is deeply saddened by the tragic shooting that occurred Monday in New York City. On behalf of our membership, I extend our heartfelt condolences to the families and loved ones of the victims, including those from Rudin Management and Blackstone, and to all those impacted by this senseless act of violence.
  • RER will continue to work closely with the FBI and other federal, state and local agencies to share critical intelligence, strengthen building security, support first responders, and advance national policies that promote public safety while protecting individual rights.”

RER’s HSTF & RE-ISAC

  • Through our Homeland Security Task Force (HSTF) and Real Estate Information Sharing and Analysis Center (RE-ISAC), RER actively collaborates with the FBI, Department of Homeland Security, and other local and federal agencies.
  • Recent events highlight the need for continued vigilance and preparedness across the commercial facilities sector, especially given increasing risks from violent crime, civil unrest, cyber-attacks, and international tensions.

These longstanding partnerships are vital to strengthening public-private coordination and emergency preparedness.

Energy Tax Incentives in the OB3 Act: What They Mean for CRE

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Major changes to the federal tax code’s clean energy incentives, signed into law on July 4 by the One Big Beautiful Bill Act (OB3 Act), continue to generate questions regarding the future of building-related solar, storage, and similar projects.

Why It Matters

  • The new law accelerates the phase-down of tax credits, shortens eligibility timelines, and adds new foreign content and control rules, creating an urgent planning window for energy-related building investments.
  • Regarding energy-related building investments, projects that begin construction in 2025 and after should consider:
    • Tax credits that phase-out over the next few years (such as the Section 48E “tech-neutral” credit for solar, the Section 179D deduction and 45L credit for energy efficiency projects, and the Section 30C credit for EV charging stations);
    • Tax credits that remain available well into the 2030s (such as Section 48E for energy storage); and
    • Permanent options for “full expensing” that can accelerate tax write-offs of energy-related and other building investments, regardless of Section 48E or other tax credit availability.

Executive Order Tightens Rules    

  • A July 7 White House executive order directs the U.S. Treasury Department to consider revising the IRS’s longstanding “5% safe harbor” test to determine a project’s “beginning of construction” date, which could further tighten tax credit eligibility for investments such as rooftop solar. (Roundtable Weekly, July 11)
  • The EO also directs Treasury to strictly enforce the OB3 Act’s scheduled termination of clean energy production and investment tax credits under Sections 45Y and 48E of the Internal Revenue Code. Updated guidance is anticipated in August. (Bloomberg, July 7) (Utility Dive, July 9)
  • In a similar move, on Tuesday, Interior Secretary Doug Burgum issued a final order requiring high-level departmental scrutiny of solar projects on public lands, and on private property that requires Interior’s approval (such as solar panels on historic buildings, or installed as part of projects impacting federally-listed endangered species habitat). (Politico, July 18).   

Market Impact

  • A new POLITICO analysis estimates that more than 662,000 jobs and $565 billion in investment tied to clean energy projects announced since 2017 could be at risk under the OB3 Act. (PoliticoPro July 30)
  • Many of these projects depended on long-term planning horizons and Biden-era tax incentives, now constrained by tighter deadlines and new eligibility rules.

EPA Endangerment Finding

  • In related news, the Trump administration this week proposed eliminating the 2009 “Endangerment Finding.” This Obama-era decision underpins federal regulations to address climate change and limit greenhouse gas emissions from power plants, vehicles, and other sources. (EPA Press Release, July 30) (Politico, July 29)
  • The EPA’s proposal only impacts federal-level rules. Governors and officials in California, Colorado, New York, and elsewhere pledged to continue their own climate regulatory efforts, citing the need for science-based action. (BBC News, July 29; The Hill, July 29; Colorado Governor statement; NYS-DEC statement.)
  • In this regard, efforts by EPA Administrator Lee Zeldin to rescind the Endangerment Finding will likely have minimal impact on state and local Building Performance Standards (BPS) that aim to reduce energy use and emissions from commercial and multifamily properties. (See RER’s 20-Point BPS Guide (Oct. 2024)).
  • The EPA’s proposal is not yet final and will undergo a 45-day public comment period once published in the Federal Register. (PoliticoPro, July 29)

As regulatory guidance evolves, RER will continue advocating for clear, workable policies that support long-term real estate energy investments.

Interest Rates Hold Steady: All Eyes Now on September FOMC Meeting

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This week, the Federal Open Market Committee (FOMC) voted 9-2 to hold rates steady. Two Trump-appointed Fed governors, Michelle Bowman and Christopher Waller, voted against the decision, marking the first FOMC meeting since 1993 in which more than one board governor dissented from the majority.

The Fed’s Decision

  • Fed officials continue to follow a “wait-and-see” approach regarding the impact of tariffs on the economy and the question of who will ultimately bear the costs.
  • The central bank left borrowing rates unchanged at 4.25 percent to 4.5 percent after meeting on Wednesday, despite an aggressive push from President Trump to slash borrowing costs to 1 percent. (Financial Times, July 30)
  • The FOMC’s post-meeting statement expressed only a couple of changes in its views on economic conditions since its last meeting in June.
  • “The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated,” read the statement. At the FOMC’s June meeting, the committee had a more optimistic view, saying the economy “continued to expand at a solid pace.” (CNBC, July 31)
  • Fed Chair Jerome Powell was committed to making sure any one-time increases in prices didn’t lead to more persistent inflation. “We want to [lower rates] efficiently… If you move too soon, you wind up maybe not getting inflation all the way fixed and you have to come back [and raise rates]. That’s inefficient. If you move too late, you might do unnecessary damage to the labor market,” said the chair.” (WSJ, July 30)

Implications for CRE

  • Wednesday’s hold, which was widely expected, is unlikely to push investors in any new direction, as U.S. CRE capital markets are already outperforming forecasts this year. (BisNow, July 30)
  • In parallel, many lenders have started the process of taking enforcement actions on loans past their maturity date while also tracking what may happen with interest rates before executing. (Commercial Observer, July 30)
  • The Fed’s decision reinforces findings from RER’s Q2 2025 Sentiment Index, which indicated that the CRE executives expressed a decline in market confidence, as policy uncertainty, rising costs, and investor caution continue to cloud the outlook. (RW, June 20)

Looking Ahead

  • Focus will now turn towards the September FOMC meeting, as the central bank confronts competing signals about the health of the U.S. economy. (WSJ, July 30)
  • The Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge, rose last month, suggesting that tariffs may be driving some prices higher. (CBS News, July 31)
  • However, new economic data this week suggested that the U.S. economy so far seems to have avoided significant tariff-related inflation. (Semafor, July 30)
  • The Commerce Department said U.S. gross domestic product—the value of all goods and services produced across the economy—rose at a seasonally and inflation adjusted 3% annual rate in the second quarter. That is up from a 0.5% contraction in the first quarter. (Wall Street Journal, July 30)
  • Despite some encouraging signs, Chair Powell’s reluctance to signal a September rate cut was perceived as hawkish. (Financial Times, July 30)
  • In the meantime, the coming months will likely come with more debate among political leaders around the role of the Fed in the U.S. economy.
  • President Trump’s displeasure with the Fed’s resistance to cut rates has twice taken him to the verge of trying to fire Powell, spooking markets and raising concerns about the central bank’s independence. (Axios, July 31)

Chair Powell is expected to speak at the Jackson Hole Economic Symposium on August 22. With the labor market weakening, inflation holding steady, and political pressure mounting, the speech could offer hints about the likelihood of a rate cut in September. (Barrons, July 30)

Roundtable Supports Senate Plan to Boost Housing Supply and Affordability

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The Senate Banking Committee this week unanimously advanced the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025, a sweeping housing reform package led by Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) aimed at addressing the housing crisis by expanding supply, improving affordability, and increasing oversight. It focuses on streamlining regulations, incentivizing construction, and supporting vulnerable populations like veterans and the homeless. The bill also seeks to modernize housing finance and disaster recovery programs. (Senate Banking Press Release, July 29)

Why It Matters

  • The Real Estate Roundtable (RER) submitted a comment letter in support of ROAD Act ahead of the committee’s first bipartisan housing markup in over a decade. (Letter, July 28)
  • The bill incentivizes states and cities to boost housing supply by cutting red tape, streamlining federal inspections, and eliminating duplicative regulations. The bill also directs the Department of Housing and Urban Development (HUD) to launch new grant and loan programs to address home repairs, health hazards, and support local zoning and development reforms. (The Hill, July 29)
  • Sen. Scott highlighted the bipartisan effort, noting that housing access and affordability remains a top economic concern for Americans. “For far too long, Congress believed this problem was too big to solve. Today, we’re taking not a step—but we’re taking a leap in the right direction in a bipartisan fashion,” Sen. Scott said in remarks at the markup. (Senate Banking Press Release, July 29)
  • The legislation contains more than 40 provisions contributed by every committee member and reflects a coordinated effort to modernize housing policy at the federal level. (Politico, July 29 )
  • RER President and CEO Jeffrey DeBoer emphasized the legislation’s “smart, incentive-based approach” to removing regulatory obstacles and encouraging a broader range of housing options.
  • “The ROAD Act aligns federal incentives with local decision-making in a way that will unlock private capital, enhance housing supply, and support long-term economic resilience,” DeBoer said.

Key Provisions in the ROAD Act

  • Incentives for Housing Supply: Expands development opportunities in Opportunity Zones and near public transit, encourages adaptive reuse of vacant buildings, and supports modular and manufactured housing production.
  • Zoning and Regulatory Reform: Directs HUD to publish best practice frameworks for state and local zoning and land use to reduce barriers to housing production.
  • Streamlined Federal Programs: Coordinates HUD, Department of Agriculture (USDA), and Department of Veterans Affairs (VA) efforts to eliminate redundant rules and improve efficiency.
  • Community Development Incentives: Rewards communities that expand housing supply with Community Development Block Grant (CDBG) allocations under the Build Now Act.
  • Rental and Loan Modernization: Raises RAD program caps and updates Federal Housing Administration multifamily loan limits to match market conditions.
  • Disaster Recovery and Resilience: Permanently authorizes CDBG-Disaster Recovery and establishes a HUD office to support housing stability after disasters.

RER continues to work with Congress and the administration to address housing affordability challenges and to advance policies that will expand housing supply and economic stability.  

Roundtable Weekly Will Resume Publication on September 5, 2025

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The Roundtable’s policy news digest will resume publication on Friday, September 5, 2025

Recent issues of Roundtable Weekly can be searched by keyword here.

Roundtable Statement on Tragic New York City Shooting

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Statement by Real Estate Roundtable (RER) President and CEO Jeffrey D. DeBoer

(WASHINGTON, D.C.) — “The Real Estate Roundtable (RER) is deeply saddened by the tragic shooting that occurred Monday in New York City.

On behalf of our membership, I extend our heartfelt condolences to the families and loved ones of the victims, including those from Rudin Management and Blackstone — and to all those impacted by this senseless act of violence.

RER will continue to work closely with the FBI and other federal, state and local agencies to share critical intelligence, strengthen building security, support first responders and advance national policies that promote public safety while protecting individual rights.”

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

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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.

Housing Challenges and Economic Pressures Shape CRE Outlook

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The intersection of housing shortages, escalating construction costs, and policy uncertainty is defining the commercial real estate (CRE) landscape as the second half of 2025 unfolds. Recent bipartisan legislative action on housing, along with fresh economic data, underscores the sector’s significant headwinds and potential opportunities.

Bipartisan Action on Housing Supply

  • Lawmakers introduced bipartisan legislation this week aimed at reducing local regulatory barriers to housing production. (ConnectCRE, July 24)
  • Rep. Flood (R-NE) emphasized the bill’s role in addressing “onerous local zoning policies,” aiming to facilitate increased housing construction. (PoliticoPro, July 23)
  • The legislation, previously known as the Yes in My Back Yard (YIMBY) Act, was passed by the House in 2018 and 2020 but stalled in prior sessions.

Housing Market Warning Signals

  • Moody’s Analytics Chief Economist Mark Zandi declared a “red flare” for housing this week, noting persistent mortgage rates near 7% and declining affordability.
  • He cautioned that housing could soon become a significant barrier to broader U.S. economic growth. (GlobeSt., July 22)

CRE Market Pressures

  • JLL’s Midyear Update presents a cautious outlook for CRE, highlighting stalled construction pipelines and lowered growth expectations for 2026, driven by uncertainties surrounding tariffs, labor market disruptions, and elevated interest rates. (JLL Midyear Update; Global Real Estate Outlook 2025)

  • JLL reports that material costs are estimated to rise 7 to 12 percent for the remainder of 2025, and construction labor growth is forecasted at just 1 percent, well below the average of 3 percent in recent years. (Commercial Property Executive, July 21)
  • Contractors report increased absenteeism, worsened labor shortages, and project delays exacerbated by intensified deportation enforcement.
  • RER Member Hamid Moghadam (CEO, Prologis) warned that “construction costs are going to go up radically,” saying, “all of this immigration stuff is putting more pressure on construction.” (GlobeSt., July 21)
  • Despite caution, some sectors remain bright spots, such as data centers, advanced manufacturing, and multifamily housing. Rebuilding efforts following natural disasters in states like California and Florida have also contributed to pockets of localized demand.
  • Federal Reserve policy uncertainty continues to weigh on CRE activity, exacerbated by recent tensions between the Trump administration and Fed Chair Jerome Powell. Markets are closely watching for clarity from the Fed’s July 29–30 meeting. (Financial Times, July 21) (NPR, July 24)

RER remains engaged in advocacy efforts to support policies enhancing housing supply, affordability, and economic stability. For more information, see our latest fact sheet on housing policy developments.

Appropriations Season Underway on Capitol Hill; Agency Reorganization Plans Expected

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With the One Big Beautiful Bill Act (OBBBA) now enacted, attention in Washington has turned to appropriations for fiscal year 2026. Programs important to real estate—like HUD’s rental assistance program, and EPA’s ENERGY STAR program—are navigating the annual federal spending process, as Congress must pass legislation by September 30 to avoid a government shutdown.  (Roll Call, July 18)

HUD Programs

  • The House Appropriations Committee passed a bill on Tuesday to fund HUD in FY’26. (Bill text | Summary). The measure will next proceed to the full House of Representatives for a vote. (Press Release, July 17)
  • Under the bill, HUD would get about $67.8 billion in discretionary funds, a $939 million decrease compared to FY 2025.
  • Section 8 project-based rental assistance would receive a $237 million increase over FY 2025 levels, totaling $17.127 billion. According to the committee, the funding would support full renewal of contracts for roughly 1.2 million households.
  • Despite the funding gains for rental assistance, the bill includes a 26% cut to HUD staffing—raising concerns about the agency’s capacity to manage and deliver programs efficiently. (PoliticoPro, July 9)

EPA Programs

  • A separate House appropriations subcommittee also passed a bill on Tuesday to fund EPA for FY’26. (Bill text | Summary). The bill proposes no specific cuts to ENERGY STAR. The program receives strong support from RER in partnership with a broad coalition of national real estate, manufacturing, retail, and technology industry groups. (Roundtable Weekly, June 6).
  • The measure proposes $2.27 billion for EPA’s environmental programs in FY’26, representing a 29% cut compared to current fiscal year funding. (Summary)

Supreme Court Ruling Upholds Agency Reorganizations

  • Ultimate FY’26 spending levels will be impacted by agencies’ internal plans to reorganize and eliminate programs. An 8-1 decision by the U.S. Supreme Court last week allows the Trump administration to move forward with large-scale staff reductions and structural overhauls across 19 federal departments. (Reuters, July 9)
  • The high Court’s ruling states that any specific reorganization effort could be deemed illegal, while confirming the President’s general authority to direct agencies to develop “RIF and Reorganization Plans” by September 30 in accord with a “DOGE” Executive Order and White House memo both issued in February.
  • Moving forward with EPA’s planned restructuring, Administrator Lee Zeldin on Thursday announced further reorganization by consolidating finance and administrative offices, changing enforcement and Superfund offices, and continued workforce reductions through early retirements and layoffs. (PoliticoPro, July 17)
  • Reports thus far of Zeldin’s plans do not identify any planned cuts to ENERGY STAR or the larger division in which it is housed at the agency.
  • Advocacy by RER and coalition partners to the administration and Congress explains that ENERGY STAR’s continued success as a non-regulatory, public-private partnership depends on sufficient staff and budget resources to implement the program.

What’s Next

  • Rescissions: Congress may consider further efforts to rescind unspent prior-year funding, similar to the bill passed this week and now heading to the President’s desk clawing-back $9 billion in previous funds for foreign aid and public media. (POLITICO, July 18). 
  • More Tax Legislation?: According to the House speaker’s top tax aide, Congress may pursue a bipartisan tax package, additional retirement policy changes, and a follow-up reconciliation bill informally dubbed “2 Big 2 Beautiful.” (Tax Notes, July 17)
  • Section 899: Republican tax leaders Rep. Jason Smith (R-MO) and Sen. Mike Crapo (R-ID) have signaled they may reintroduce the Section 899 retaliatory tax if negotiations to exempt U.S. companies from OECD Pillar 2 taxes fail, potentially in a second reconciliation bill (Tax Notes, July 17). However, Germany’s Finance Minister Lars Klingbeil reaffirmed his country’s commitment to implementing Pillar 2 of the global minimum tax, despite widespread uncertainty following recent U.S. tariff announcements and the G7 carveout exempting American companies. (PoliticoPro, July 18)
  • FY’26 Appropriations: Senate Majority Leader John Thune has not yet decided whether to bring a government funding bill to the floor next week but aims to pass at least one funding package before the Senate’s August recess. (PoliticoPro, July 17) If congress does not pass FY’26 spending legislation by September 30, it could default to a stop gap “continuing resolution” and extend FY’25 levels to keep the government running.
  • Agency Restructurings: Reorganizations plans prompted by DOGE efforts will continue to be unveiled before and after Labor Day.

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