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.