Category: Policy Landscape

Washington Gridlock Deepens Amid Prolonged Shutdown

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U.S. Capitol at sunset

The federal government shutdown—now in its fourth week and the second-longest in U.S. history—shows no sign of ending as partisan divisions deepen and the House remains in recess. (Punchbowl News, Oct. 24)

State of Play

  • House Republicans have no plans to reconvene before next week, as negotiations remain stalled over renewing enhanced Affordable Care Act (ACA) subsidies, which expire at year’s end. (PoliticoPro, Oct. 23)
  • Speaker Mike Johnson (R-LA) has kept the chamber out of session for more than a month, insisting that Democrats must first agree to reopen the government before any negotiations on broader health care or spending issues resume.
  • In the Senate, lawmakers have rejected short-term funding bills 12 times since Oct. 1. The latest GOP-led continuing resolution (CR) to fund operations through Nov. 21 failed earlier this week.
  • Senate Majority Leader John Thune (R-SD) has suggested separate votes to fund active-duty military members and air traffic controllers in an effort to increase pressure on Democrats, but the measures have also failed. (Politico | Washington Post, Oct. 23)

Economic and Operational Strains

  • The most recent consumer price index showed annual inflation at 3% in September, keeping the Federal Reserve on track to cut rates next week. The shutdown has halted new economic data releases, prompting Fed Chair Jerome Powell to warn that the prolonged “data blackout” could complicate monetary policy. (PoliticoPro, Oct. 24 | Axios, Oct.24)
  • Lawmakers on both sides warn that the economic fallout will deepen if the impasse continues, threatening programs vital to housing, infrastructure, and financial markets.
  • EY-Parthenon Chief Economist Gregory Daco estimates that the shutdown will cost the U.S. economy roughly $7 billion per week. (BisNow, Oct. 12)
  • U.S. GDP could decline by 15-20 basis points per week, though the near-term impact on commercial real estate remains limited, according to Marcus & Millichap. (Marcus & Millichap)
  • Cybersecurity risks are rising as agencies such as the Cybersecurity and Infrastructure Security Agency (CISA) operate with minimal staff. Businesses report limited federal coordination following the expiration of the Cybersecurity Information Sharing Act of 2015, which had allowed companies to share threat data with the government. (Bloomberg, Oct. 22)

Looking Ahead & What’s at Stake

  • Mounting political and economic pressure points are expected to intensify around Nov. 1, when funding shortfalls for Supplemental Nutrition Assistance Program (SNAP) and WIC nutrition benefits are projected, ACA open enrollment begins, and federal workers miss another paycheck—factors that could force both parties back to the negotiating table.
  • Federal workforce: Hundreds of thousands of employees will miss a paycheck this week. The Trump administration has reprogrammed limited funds to pay military personnel and some law enforcement officers, yet mass layoffs are underway, and litigation over the firings has already begun.
  • Transportation delays: Shortages of air traffic controllers and TSA employees are worsening as paychecks lapse. Speaker Johnson said he will not recall the House to vote on a standalone bill to fund these workers, while Senate leaders may soon force votes on military pay and nutrition benefits ahead of the Nov. 1 cutoff.
  • Public assistance: Existing funding for the SNAP program is expected to run out by the end of October. The administration is assessing whether it can reallocate funds to sustain the program, which serves 42 million Americans.
  • Health coverage: The start of ACA open enrollment on Nov. 1 is another flashpoint, as Democrats warn that expiring subsidies could drive higher premiums and intensify voter pressure to end the shutdown.

Path Forward

  • Lawmakers have floated extending the current stopgap into December or early 2026, but no consensus has emerged. Democrats oppose any measure that provides funding into next year without renewing enhanced ACA subsidies that expire in December.
  • The Senate is set to leave Washington until Monday, while the president departs for a 10-day trip to Asia, further dimming hopes for a near-term deal.

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.

Government Shutdown Stalemate Deepens, Raising CRE Concerns

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The federal government remains shut down for a second week as partisan gridlock over spending and health care continues in Washington. (Punchbowl News Oct. 15, 17 | Roll Call Oct. 14)

State of Play

  • Republicans and Democrats remain deadlocked, with no signs of progress toward reopening the government. The Senate on Thursday failed for the 10th time to advance a short-term funding bill passed by the House since the shutdown began Oct. 1. (NPR, Oct. 16)
  • In a 51–44 vote, senators again rejected a GOP-led continuing resolution (CR) that would have funded the government through Nov. 21. (CNBC, Oct. 15)
  • Democrats continue to insist that any funding measure must include an extension of enhanced Affordable Care Act (ACA) subsidies that are set to expire at the end of the year.
  • GOP leaders also remain at a standstill until the government reopens—Speaker Mike Johnson (R-LA) refusing to recall the House without a funding deal, and Senate Majority Leader John Thune (R-SD) said discussions on health care tax credits can begin only after the shutdown ends. (NPR, Oct. 9 | PoliticoPro, Oct. 6)
  • The Trump administration’s plan to lay off more than 10,000 federal employees during the shutdown has been temporarily blocked after a judge ruled the firings likely exceeded executive authority. (Roll Call, Oct. 15 | Bloomberg, Oct. 16)

Path Forward

  • As the shutdown enters its third week, lawmakers are weighing several potential exit paths, including a short-term CR, a handful of Democrats could defect to advance the GOP bill, a Trump–Schumer compromise, or a bipartisan “dual-vote” plan led by Sen. Jeanne Shaheen (D-NH) to reopen the government and extend ACA subsidies for one year. (Punchbowl News, Oct. 16 | Bloomberg, Oct. 14)
  • The White House appears prepared for a prolonged shutdown, redirecting funds to sustain key programs and betting that public pressure will eventually force Democrats to adjust strategy. (Punchbowl News, Oct. 16)
  • Lawmakers on both sides warn the economic fallout will deepen if the impasse stretches into November, threatening programs vital to housing, infrastructure, and financial markets.

CRE Impact

  • Economy: Each week the government remains shut down is projected to cost the U.S. economy roughly $7 billion, according to EY-Parthenon Chief Economist Gregory Daco. (BisNow, Oct. 12)
  • GDP: U.S. gross domestic product could fall by 15 to 20 basis points for each week the shutdown persists, according to Marcus & Millichap, which noted that the immediate impact on CRE remains limited for now. (Marcus & Millichap)
  • Housing: The U.S. Department of Housing and Urban Development (HUD) reportedly has confirmed federal funding for rental voucher assistance is available through the end of 2025, consistent with HUD’s contingency plan for certain programs to continue operations during the shutdown. (NAHRO, Oct. 16 | Roundtable Weekly, July 25)
  • Energy: EPA’s Portfolio Manager building energy benchmarking tool remains up and running. However, the agency’s website explains that ENERGY STAR resources “will not be updated regularly” during the lapse in appropriations and “many services may not be available.”
  • NFIP: The lapse of the National Flood Insurance Program (NFIP) continues to delay property closings and financing in flood-prone regions. While existing claims can still be paid, new policies and renewals cannot be issued, complicating sales and dampening confidence in affected markets. (Roundtable Weekly, Oct. 10)
  • Sen. John Kennedy (R-LA) is urging GOP leaders to hold a stand-alone vote to reopen the NFIP. Speaker Johnson and Majority Leader Steve Scalise (R-LA) have resisted, saying the program will be reauthorized once the government reopens. (PoliticoPro, Oct. 16)
  • RER supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)

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.

Government Shutdown Continues

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The federal government shut down ten days ago, with no resolution in sight. (Punchbowl News, Oct. 9 | Oct. 10)

State of Play

  • On Thursday, Senate Democrats rejected for the seventh time, Republicans’ proposal to extend government funding through Nov. 21. (Roll Call, Oct. 8)
  • In response, GOP senators blocked Democrats’ competing plan to extend Affordable Care Act premium tax credits, reverse Medicaid cuts, and limit President Trump’s authority to rescind congressionally approved funds. (Punchbowl News, Oct. 7)
  • Top Democrats, led by Senate Minority Leader Chuck Schumer (D-NY), are calling for bipartisan negotiations on health care, arguing that Republicans face growing pressure to renew expiring health care subsidies as part of any funding deal. (PoliticoPro, Oct. 6)
  • House Speaker Mike Johnson (R-LA) said he will not recall the House to Washington until Democrats agree to work with Republicans on a funding plan. (NPR, Oct. 9)
  • Senate Majority Leader John Thune (R-SD) said he is open to discussions on health care tax credits only after the government reopens. “We said we’re willing to have those conversations, but it starts with ending the shutdown,” Sen. Thune said. (PoliticoPro, Oct. 6)

CRE Impact

IRS building in Washington, DC
  • While the shutdown poses broader economic risks, its immediate impact on commercial real estate remains limited, as most operations continue unaffected. A prolonged closure, however, could disrupt HUD rental subsidies, further delay economic data, and weigh on investor confidence, according to Marcus & Millichap. (Connect CRE, Oct. 7 | CNBC, Oct. 8)
  • The National Flood Insurance Program (NFIP) cannot issue new policies or renewals during the shutdown, threatening thousands of real estate transactions. The Real Estate Roundtable (RER) supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)
  • The shutdown is also stalling work on bipartisan priorities such as fiscal 2026 spending bills, energy legislation, and permitting reform. “One of the things that’s not getting done while the government is shut down is an appropriations process that allows us to fund the government the old-fashioned way, in the light of day,” said Sen. Thune. “We aren’t working on permitting reform, which should be a bipartisan priority.” (E&E News, Oct. 6)
  • At the IRS, nearly half the workforce has been furloughed as of Wednesday, though the agency will continue implementing President Trump’s recent tax cuts. (Politico, Oct. 8 | CNBC, Oct. 8)
  • The Cybersecurity and Infrastructure Security Agency (CISA) is operating with roughly one-third of its staff, heightening concerns about protections for the electric grid, water systems, and critical infrastructure amid rising cyber threats. (Washington Post, Oct. 2)
  • “Government shutdowns and temporary extensions of essential programs like the NFIP create avoidable uncertainty that disrupts real estate markets and undermines economic confidence,” said RER President & CEO Jeffrey DeBoer. “Congress should act responsibly by providing long-term solutions that protect communities and the American people, encourage investment, and sustain growth.” (Roundtable Weekly, Oct. 3)

The longer the shutdown persists, the greater the risk of delayed projects, stalled investment, and uncertainty across real estate markets that depend on reliable federal programs.

Government Shutdown: What It Means for CRE

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The federal government shut down on Wednesday—the first lapse since 2019—with no deal in sight. Both chambers are at an impasse after dueling stopgap funding bills failed again this week. (AP News, Oct. 2)

State of Play

  • Senate Democrats blocked Republicans’ “clean” Nov. 21 continuing resolution (CR). Republicans rejected Democrats’ version that included extending enhanced Affordable Care Act subsidies and reversing Medicaid cuts.
  • Senate Majority Leader John Thune (R-SD) and Minority Leader Chuck Schumer (D-NY) may meet Friday in their first one-on-one since the standoff began. Another round of votes is planned for Friday. (Punchbowl News, Oct. 2)
  • If Democrats block the GOP plan again, Majority Leader Thune is expected to adjourn the Senate until Monday, canceling Saturday votes, and force another vote on Monday. (Punchbowl News, Oct. 2)

CRE Impact

  • NFIP: The National Flood Insurance Program (NFIP) cannot issue new policies or renewals during the shutdown, threatening thousands of real estate transactions. The Real Estate Roundtable (RER) supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)
  • Senate Banking Committee Chair Tim Scott (R-SC) “remains committed” to funding the program and is “optimistic” Democrats will join Republicans to prevent a lapse in coverage during peak hurricane season, his spokesperson said. (Politico, Sept. 30)
  • Energy: The ENERGY STAR program has halted partner application processing, product list updates, and specification releases—stalling efficiency certifications important to building owners and tenants. Meanwhile, it remains unclear how the shutdown will affect EPA Administrator Lee Zeldin’s broader reorganization and regulatory timeline. (PoliticoPro, Sept. 30, Oct. 1 | NAHB, Oct. 1)
  • Housing: HUD is unable to access certain funds used to prevent evictions in its Tenant-Based Rental Assistance Program. Affordable housing initiatives also face delays due to the furloughing of program staff. (Politico, Sept. 30)
  • Construction: Fallout from the shutdown is also reverberating through the construction sector, where contractors warn that halting federal projects will ripple into private markets by raising costs and eroding confidence. (UtilityDive, Oct. 1)
  • Tax Policy & Treasury: Despite the shutdown, Treasury has said it will continue implementing President Trump’s tax law and deregulatory agenda, relying on multi-year funding streams. Its tax policy office will remain active, advancing the president’s tax cuts and regulatory rollbacks. Other Treasury operations—including debt management, collections, and oversight of financial markets will also continue. (PoliticoPro, Sept. 29)
  • “Government shutdowns and temporary extensions of essential programs like the NFIP create avoidable uncertainty that disrupts real estate markets and undermines economic confidence,” said RER President & CEO Jeffrey DeBoer. “Congress should act responsibly by providing long-term solutions that protect communities and the American people, encourage investment, and sustain growth.”

As the shutdown continues, mounting strain on real estate transactions, insurance coverage, and investment planning will intensify pressure on Congress to resolve the impasse.

Government Shutdown Deadline Nears

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Congress has less than a week to keep the government open as an Oct. 1 shutdown looms. (Punchbowl News, Sept. 24)

State of Play

  • House GOP plan: A continuing resolution (CR) through Nov. 21 that would also extend the National Flood Insurance Program (NFIP). Senate Democrats blocked it. (Politico, Sept. 25)
  • Democratic plan: A shorter CR to Oct. 31 that adds priorities such as Affordable Care Act subsidies and reversing Medicaid cuts. Senate Republicans blocked it. (Punchbowl News, Sept. 23)
  • GOP leaders frame their plan as a clean extension to buy time to keep the government open while negotiations continue. Democrats say Republicans are ignoring urgent needs.
  • On Wednesday, President Trump canceled a planned meeting with Senate Democratic Leader Chuck Schumer (D-NY) and House Democratic Leader Hakeem Jeffries (D-NY), rejecting their push to include healthcare funding in a deal to avert a shutdown. (AP News, Sept. 23)
  • In a social media post, he said no meeting with Democratic leaders “could possibly be productive.”
  • Rep. Jeffries also scheduled a caucus call on Friday to discuss “the path forward,” and a follow-up meeting in Washington on Sept. 29, despite the House being out of session. (Roll Call, Sept. 24)

Government Funding & CRE

  • Without congressional action, the NFIP will lapse on Sept. 30. Another short-term extension would be its 34th in eight years.
  • The Real Estate Roundtable (RER) supports a sustainable, long-term NFIP reauthorization with appropriate reforms. A robust program is essential for residential markets, catastrophe insurance capacity, and the broader economy.
  • The CR would also let the Department of Housing and Urban Development (HUD) use funds to prevent evictions in the Tenant-Based Rental Assistance program. (PoliticoPro, Sept. 17)

Senate Democratic Leaders say they won’t support any House-passed funding bill unless GOP leaders negotiate, while Republicans argue there’s nothing to discuss—casting next week’s vote on a “clean” CR as the only path forward. (The Hill, Sept. 25)

Government Funding Deadline Looms as NFIP Nears Expiration; RER Hosts Town Hall

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Senate Democrats on Friday blocked a House-passed stopgap spending bill that would have funded federal agencies for seven weeks, setting the stage for a potential Oct. 1 government shutdown.

  • The measure failed on a 44-48 vote, with only Sen. John Fetterman (D-PA) joining Republicans in support of the proposal, which had cleared the House earlier in the day by a narrow 217-212 vote. (The Hill, Sept. 19)
  • Senate Majority Leader John Thune (R-S.D.) said the Senate will reconsider the vote when lawmakers return from recess. (Roll Call, Sept. 19)
  • Earlier in the week, House Republicans introduced their continuing resolution (CR) to keep federal agencies open through Nov. 21, while Democrats countered with a plan extending funding only until Oct. 31. (Punchbowl News, Sept. 18)
  • Lawmakers may not return until Sept. 29, leaving less than 48 hours to avert a shutdown. (Punchbowl News | PoliticoPro, Sept. 19)

Government Funding & CRE

  • The House GOP bill would also extend the National Flood Insurance Program (NFIP) until Nov. 21. Without congressional action, the NFIP will expire on Sept. 30. If approved, the House GOP’s proposal would mark the NFIP’s 34th short-term extension in eight years.
  • Lawmakers from both parties have long called for an overhaul, and signaled interest in pursuing longer-term reforms to the program.
  • Policymakers in both chambers have signaled interest in pursuing longer-term reforms to NFIP. Chair of the Senate Banking Securities, Insurance and Investment Subcommittee, Mike Rounds (R-SD) said he expects “some reforms that can occur” this fall to put the program on a stronger financial footing. (PoliticoPro, Sept. 18)
  • The rising cost of insurance premiums due to the growing number of billion-dollar natural disasters reinforces the importance of the NFIP.
  • The Real Estate Roundtable (RER) has long supported a sustainable, long-term NFIP reauthorization with appropriate reforms. A robust program is essential for residential markets, catastrophe insurance capacity, and the broader economy.
  • The funding bill would also allow the Department of Housing and Urban Development (HUD) to use available funds to prevent evictions of households served by the Tenant-Based Rental Assistance program. (PoliticoPro, Sept. 17)

RER Town Hall

  • RER hosted a virtual Town Hall this week, “How Today’s Political Climate Impacts Real Estate,” with Politico’s Jonathan Martin (Politics Bureau Chief and Senior Political Columnist)
  • The discussion was led by RER Chair Kathleen McCarthy (Global Co-Head of Blackstone Real Estate), RER President and CEO Jeffrey DeBoer, and RER policy staff.
  • Martin shared his outlook on the 2026 and 2028 elections, the messaging challenges facing both parties, and shifting party identities.
  • He cautioned that a short-term government shutdown remains “more likely than not” as both parties seek leverage over Medicaid cuts and health care tax credits.

RER members also engaged in policy discussions on a number of policy priorities, including the implementation of the OB3 Act, Section 899 “revenge tax” concerns, Opportunity Zones, clean energy tax incentives, housing finance reform, and the future of TRIA.

Lawmakers Return to DC for Showdown Over Government Funding

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Congress returned from recess this week to heavy debate over government spending and the looming risk of a shutdown. Meanwhile, a new push for permitting reform gained steam.

Back in Session

  • With Congress back in session, legislative leaders have less than 30 days to pass a funding bill. Votes from both Democrats and Republicans will be needed to keep the government open.

  • However, Democratic anger over the White House’s use of “pocket rescissions” has created additional complications. The White House has used these rescissions to impound billions of dollars in congressionally approved funding, sparking opposition from Democrats and even some Senate Republicans. (Punchbowl News | The Hill, Sept. 3)

  • Senate Majority Leader John Thune (R-SD) is seeking bipartisan support for an FY’26 appropriations package, but it remains uncertain whether Congress will pass all funding bills or a short-term continuing resolution before the Sept. 30 deadline. (Punchbowl News, Sept. 3)

  • In addition, the National Flood Insurance Program (NFIP) is set to lapse on Sept. 30 unless reauthorized. The importance of the NFIP to the health of commercial real estate markets has grown as the number of billion-dollar natural disasters and the cost of insurance premiums continue to rise. (Fact sheet)

  • In late July, the House and Senate Appropriations Committees passed provisions preserving funding for the ENERGY STAR program in FY’26.
  • The Real Estate Roundtable (RER) will continue working with policymakers and a broad coalition of organizations to ensure that these provisions are reflected in the final appropriations package. (Roundtable Weekly, July 25)

Roundtable on the Road

  • House GOP leaders, are pressing ahead with early talks on another major domestic policy package, though momentum is uncertain as hopes for passage by year’s end fade.
  • Senate Majority Leader John Thune didn’t definitively rule out a second megabill in a brief interview but acknowledged “there would have to be a reason to do it.” (PoliticoPro, Sept. 4)
  • RER’s SVP & Counsel Ryan McCormick discussed these dynamics this week at the University of Utah Ivory-Boyer Real Estate Center Fall Board Retreat, where he outlined the OB3 Act’s impact on CRE, RER’s advocacy on tax policy, and what to expect this fall in Washington.

Permitting Reform Push

  • A bipartisan group of lawmakers, including House Natural Resources Chair Bruce Westerman (R-AR), Rep. Jared Golden (D-ME), and Senate Environment and Public Works Chair Shelley Moore Capito (R-WV), has not given up on efforts to reform the permitting process for energy infrastructure.

  • While the effort failed last year, Rep. Capito said that she’s seen a “convergence of clean energy folks and people like me who are all-of-the-above meeting together with an urgency.” (Politico, Sept. 2)

  • For years, energy projects of all kinds have been mired in slow, inefficient, and often years-long environmental reviews—among other issues. These problems have delayed the construction of critical infrastructure and made it more difficult for developers to realize their investments.

  • RER has strongly advocated for an “all of the above” energy strategy focused on ensuring an abundant supply of energy, advancing programs to avoid energy waste, strengthening the nation’s electric grid, streamlining federal permitting processes, and fostering innovation in artificial intelligence. Permitting reform is a critical part of achieving these objectives. (Fact sheet)

  • Permitting reform still faces an uphill battle—with policy differences on both sides of the aisle—but the renewed effort is a sign of positive momentum and continued urgency around the need for more energy infrastructure.

Looking Ahead

RER will keep engaging with policymakers on critical and emerging issues for the commercial real estate industry, particularly as momentum for permitting reform grows and congressional negotiations over the appropriations package heat up.

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.

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.

Congress Delivers Historic Tax and Budget Package to Trump’s Desk for July 4th Signing

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After months of high-stakes negotiations, Congress this week passed the sweeping One Big Beautiful Bill Act, a comprehensive reconciliation package that overhauls tax policy, restructures federal spending, and advances numerous Real Estate Roundtable (RER) priorities as it heads to President Trump’s desk for signature. (Roll Call, July 3)

State of Play

  • The House passed the final version of the One Big Beautiful Bill Act this afternoon, following a narrow vote of 218–214, capping off weeks of negotiations and delivering a legislative victory to Republican leaders ahead of the July 4 deadline. In the end, two Republicans—Reps. Thomas Massie (R-KY) and Brian Fitzpatrick (R-PA)—joined all Democrats in opposing the bill. (The Hill, July 3)
  • “With one big, beautiful bill, we are gonna make this country stronger, safer, and more prosperous than ever before, and every American is going to benefit from that,” said House Speaker Mike Johnson (R-LA). “Today we are laying a key cornerstone of America’s new golden age.” (Politico, July 3)
  • The Senate passed the sweeping budget bill in a 51-50 vote on Tuesday, after almost 24 hours of debate, amendments, and a “vote-a-rama” that ended with Vice President JD Vance casting the tiebreaking vote in favor of passage. Three GOP senators—Rand Paul (R-KY), Thom Tillis (R-NC), and Susan Collins (R-ME) voted no. (Axios, July 2)
  • In an interview after the bill’s Senate passage, Senate Majority Leader John Thune (R-SD) acknowledged that the decision to make the measure’s business tax cuts permanent impacted its savings and overall strategy. “We really believed that permanence was the key to economic growth because it creates certainty,” he said. “All the models that we saw showed that you got more growth with permanence.” (PoliticoPro, July 1)

Roundtable Advocacy

  • The final legislation advances a broad array of policies that support capital formation, real estate investment, and housing development, while repealing harmful proposals like Section 899 and preserving longstanding tax rules vital to CRE.
  • “This legislation represents a meaningful step toward strengthening communities, expanding housing opportunities, and supporting long-term economic growth,” said Jeffrey DeBoer, President and CEO of RER. “By advancing policies that encourage investment and preserve small business tax parity, Congress is helping to revitalize neighborhoods, create jobs, and ensure all Americans benefit from a stronger built environment.
  • DeBoer added, “We are, of course, disappointed that the overall bill is predicted to increase the deficit and national long-term debt. However, we hope that the pro-growth aspects of the bill will narrow both by significantly growing the economy and providing revenues greater than those now projected.  Likewise, we are concerned with predictions by some regarding the impact of spending cuts on research and needed health care for Americans.”
  • RER’s advocacy efforts were particularly successful in eliminating several provisions that would have severely impacted CRE, including Section 899, known as the “revenge tax,” and harmful limitations on state and local tax deductions for pass-through businesses.
  • Speaking to Bisnow regarding the impact of the tax provisions on real estate, Ryan McCormick, RER’s SVP and Counsel, said, “From the bill’s investment in housing and low-income communities to its fair treatment of entrepreneurial and pass-through businesses, the legislation strikes the right balance … it should spur job-creating capital investments in commercial properties across the nation.” (BisNow, July 1)

Tax Policy

  • The final legislation includes several tax provisions that will provide significant benefits to commercial real estate and support long-term economic growth:
  • Permanent Business Tax Cuts: The bill makes permanent several business tax deductions from the 2017 Tax Cuts and Jobs Act (TCJA), including the Section 199A deduction for pass-through businesses and interest deductibility rules under Section 163(j).
  • Section 899: Late last week, lawmakers removed the Section 899 provision known as the “revenge tax” from the bill after the Treasury Department secured an international tax agreement with G7 countries. RER strongly advocated for changes to the measure, warning that the tax would have deterred foreign investment in U.S. commercial real estate and weakened capital formation.  (Roundtable Weekly, June 27) (BisNow, July 1) (Commercial Property Executive, July 1)
  • Opportunity Zones: OZs are now a permanent feature of the tax code, though deferral periods for eligible gains are shortened through the end of 2026—a technical issue that RER will continue to address in discussions with Congress and Treasury.
  • Low-Income Housing Tax Credit (LIHTC): The bill preserves and enhances the LIHTC program, supporting the construction of affordable housing nationwide.
  • Bonus depreciation & expensing: Full expensing and 100% bonus depreciation for qualifying property are restored and made permanent, providing significant cash flow benefits for property owners undertaking capital improvements.
  • SALT workarounds preserved: The final bill drops proposed changes to state and local tax deductibility on pass-through business income, preserving current law that allows deductibility through state pass-through entity tax regimes.
  • Condominium construction tax accounting: The legislation includes provisions the RER has advocated for since 2015, allowing condo developers to use the completed contract method of accounting, aligning tax liability with actual receipts.
  • Excess business losses: The revised Senate bill avoids a controversial proposal from earlier drafts that would have permanently siloed active pass-through business losses, instead opting to extend current law under Section 461(l) without restricting taxpayers from using those losses against wages and investment income. This approach preserves flexibility for entrepreneurs, start-ups, and two-earner households and avoids undermining the principle of measuring true net income.

Energy Tax Credits

Sustainable Renewable Energy Concept With Wind Turbines, Solar Panels And City Buildings Background.
  • For months, clean energy tax incentives enacted under the Inflation Reduction Act (IRA) have been a point of contention in both the House and Senate, with several Republican lawmakers urging leadership to take a more targeted approach to scaling back the IRA’s provisions—while maintaining incentives that support both traditional and renewable energy sectors. (RW, April 25) (CBS News, July 1)
  • Ultimately, the final legislation significantly scales back the IRA’s clean energy tax incentives by accelerating the phase-out of wind and solar credits, while dropping a controversial excise tax on projects using foreign components and preserving eligibility for already planned or approved developments that begin construction before mid-2026. (PoliticoPro, July 1) (Bloomberg, July 1)
  • The Section 48E Investment Tax Credit (ITC) for wind and solar projects remains in the tax code, but projects that begin construction 12 months after the bill’s enactment must be placed in service by the end of 2027.
  • The Section 179D deduction for energy-efficient commercial building construction and retrofits is now limited to projects that begin construction by June 30, 2026.
  • Similarly, the 45L tax credit for energy-efficient new residential construction expires for homes “acquired” after June 30, 2026.
  • Importantly, ENERGY STAR’s current budget for FY2025 was not affected by any of the funding rescissions in the final bill.
  • At this week’s BOMA International Conference, RER’s SVP and Counsel Duane Desiderio joined John Boling (VP, Advocacy & Building Codes, BOMA International) for a panel discussion on ENERGY STAR Portfolio Manager, highlighting the program’s legal foundation, bipartisan economic appeal, and importance to real estate stakeholders. (Commercial Property Executive, July 2)
  • RER will continue engaging with lawmakers through the annual appropriations process to ensure that FY2026 federal funding bills (for spending starting October 1) support ENERGY STAR. (Commercial Property Executive, July 2)

What’s Next

  • With the One Big Beautiful Bill Act heading to the president’s desk, attention now turns to the appropriations process and additional reconciliation opportunities.
  • Speaker Mike Johnson has expressed interest in pursuing additional budget reconciliation efforts, a process that Congress can undertake at the end of the fiscal year.
  • In an interview on Fox News Tuesday, Johnson said, “This is just a step in a sequence of events. We’re intending to do more reconciliation work. The plan is to do one in the fall for FY26 budget year and we can also squeeze in a third one for FY27 before this Congress is up.” (Politico, July 2) (Punchbowl News, July 2)

RER will continue to provide in-depth analysis in the coming days and weeks on the reconciliation bill’s implications for commercial real estate, including technical implementation, market impacts, and policy recommendations.