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.