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The Senate Environment and Public Works Committee (EPW) unanimously approved a bill on Tuesday to authorize $287 billion over five years to repair and maintain the nation's surface transportation. The bipartisan measure also aims to expedite the infrastructure permitting process, help address climate change, and grow the economy. ( EPW Committee news release , July 30) America's Transportation Infrastructure Act of 2019 (ATIA, S. 2302) is not the comprehensive infrastructure overhaul that Republicans and Democrats have long sought. (Roundtable Weekly,May 3, 2019.) However, it makes progress toward shoring-up the Highway Trust Fund (HTF) – the nation's largest financing source for roads, bridges, tunnels, and mass transit. Congress must reauthorize and capitalize the HTF before it runs out of money by the end of September 2020, at the height of the presidential election season. (ATIA summary and section-by-section analysis)

President Trump signed major bipartisan legislation today that allocates more than $2.7 trillion in discretionary federal spending over two years; suspends the debt ceiling until July 2021; and permanently eliminates the prospect of strict "sequestration" spending caps imposed under the Budget Control Act of 2011. ( The Hill , Aug. 2) The legislation – a result of weeks of negotiations between Democratic congressional leaders and the White House – passed the Senate yesterday by a vote of 67-28 after the House last week approved it 284-149. (Roundtable Weekly, July 26). President Trump tweeted yesterday in support of the bill.

Real Estate Roundtable' Q3 2019 Economic Sentiment Index Report

The Senate Committee on Commerce, Science and Transportation on July 24 overwhelmingly passed S. 2203 , the Brand USA Extension Act to reauthorize the organization that promotes the U.S. globally as a travel destination. Survey. Brand USA is a public-private partnership that attracts international travelers to the U.S. to encourage tourism spending at America's hospitality, retail, attraction and other properties. The Brand USA marketing organization operates at no expense to taxpayers. Private sector contributions fund the program, matched by U.S. government fees collected from foreign visitors who enjoy visa-free entry to the U.S.

A recent hearing by a House Financial Services subcommittee reflects a growing interest among policymakers regarding environmental, social, and governance (ESG) reporting by public companies. (" Building a Sustainable and Competitive Economy: An Examination of Proposals to Improve Environmental, Social and Governance (ESG) Disclosures ," July 10 hearing) ESG disclosures generally address issues in the areas of environmental sustainability (e.g., climate change); social (e.g., human rights and labor practices); and governance (e.g., executive- and board-level diversity) matters. ( Financial Services Committee memorandum , July 5) Nareit's ESG Dashboard identifies and tracks key performance indicators to better measure and quantify best ESG practices for the U.S. REIT industry.

President Trump Signs Debt Limit, Budget Caps Deal After Senate Passage; Congress In Recess Until Sept. 9.

Roundtable's DeBoer Comments on Energy Efficiency Bill at Senators Portman, Shaheen News Conference

Twenty-one Senate Republicans led by Ted Cruz (R-TX) this week urged Treasury Secretary Steven Mnuchin to use his regulatory authority to eliminate inflationary gains from the calculation of capital gains tax liability. ( Letter to Secretary Mnuchin , July 29) Capital gains tax is generally based on the difference between the sale price of a capital asset and its original cost, adjusted for certain factors such as depreciation. Capital gain liability includes an amount that reflects general price inflation, in addition to the true economic gain. Especially for long-held assets such as real estate, capital gain thus overstates a taxpayer's economic income.

The Senate Environment and Public Works Committee (EPW) unanimously approved a bill on Tuesday to authorize $287 billion over five years to repair and maintain the nation's surface transportation.

A Senate Banking Committee hearing on July 23 focused on a bipartisan bill that would protect lenders from federal liability when they provide accounts and other financial services to cannabis-related businesses (CRBs) deemed legal under state laws. The bill would also protect certain real estate transactions involving legitimate CRBs. (Senate Banking Committee, " Challenges for Cannabis and Banking: Outside Perspectives ") The hearing featured testimony by Sens. Cory Gardner (R-CO) and Jeff Merkley (D-OR), co-sponsors of the Secure And Fair Enforcement (SAFE) Banking Act. Their bill (S. 1200) would provide a safe harbor to financial institutions serving CRBs, protecting them from federal money laundering laws.

The Department of Homeland Security (DHS) on Wednesday published long-anticipated regulations governing key aspects of the EB-5 investment visa program. The new rule is scheduled to take effect on November 21, 2019 – assuming Congress reauthorizes EB-5 regional centers by September 30, and does not enact substantive reforms that supersede those program elements covered by DHS's action. For a detailed description of the rule, see "Greenberg Traurig Alert: Final EB-5 Regulations."

The U.S. House of Representatives yesterday passed the Bipartisan Budget Act of 2019 (H.R. 3877) that would suspend the national debt ceiling until July 31, 2021; raise federal spending over the next two years; and avoid the threat of automatic, across-the-board "sequestration" budget cuts. The bill now goes to the Senate, which is expected to vote next week. ( Section-by-Section summary of the bill, Budget Committee) The measure, which passed 284-149, caps recent negotiations between Democratic congressional leaders and the White House. Earlier this month, Treasury Secretary Steven Mnuchin wrote to House Speaker Nancy Pelosi (D-CA) warning that if the debt ceiling was not raised, the U.S. could run out of cash to pay its bills in early September, resulting in potential default on the nation's financial obligations. (Roundtable Weekly, July 12)

The Financial Accounting Standards Board (FASB) on Wednesday passed a proposal that would give more time to smaller lending institutions to adopt the Current Expected Credit Losses (CECL) accounting standard, which forces lenders to book losses on bad loans much faster. ( ABA Banking Journal , July 17) The delay would set January 2023 as the new deadline for small public lenders, private lenders and nonprofits (such as credit unions) to implement CECL. (Credit Union National Association, July 17)

A bipartisan bill reintroduced July 17 by Sens. Rob Portman (R-OH) and Jeanne Shaheen (D-NH) includes provisions to advance energy efficiency standards for U.S. real estate by fostering market incentives, data-driven research, and open government procedures. Roundtable President and CEO Jeffrey D. DeBoer joined other industry and environmental group leaders at a press conference Wednesday in the Senate to support the Energy Savings and Industrial Competitiveness (ESIC) Act. (Video of DeBoer's statement and entire press event)

The U.S. Environmental Protection Agency (EPA) on July 15 released highly anticipated updates to its ENERGY STAR scoring model – a key federal label that rates and compares U.S. buildings' energy performance. The scoring update includes changes advocated by The Real Estate Roundtable and other real estate organizations. ENERGY STAR is a widely recognized, national label used as a market signal for well-managed property assets with smaller carbon footprints. The label impacts nearly 35,000 buildings and plants nationwide, representing more than 5 billion square feet of commercial space. ( ENERGY STAR "Facts and Stats ")

The U.S. Department of Commerce on July 8 found that government subsidies to Canadian exporters of fabricated structural steel (FSS) were not large enough to justify any new countervailing duties. In contrast, the agency found that unfair subsidies provided by the other two implicated countries warrant new duties in the range of 13% (Mexico) to 36% (China). ( Commerce Dept. Fact Sheet , July 8) Survey. FSS is a key material used in constructing the superstructure of major real estate and infrastructure projects, including high-rise developments, bridges, parking decks and ports. (Roundtable Weekly, March 8)

Roundtable submits recommended clarifications for final Opportunity Zones tax regulations, which are expected from the Treasury Department before the end of 2019.

New forecasts that the federal government may be unable to pay its bills by the first half of September have put pressure on policymakers to raise the nation's debt ceiling before Congress departs for summer recess – or face the prospect of a national default. If the debt limit is not increased to meet the nation's financial obligations, the government could miss payments to federal employees for salaries and pensions, debt service to foreign lenders, and potentially interest payments on the federal debt.

As The Real Estate Roundtable marks its 20th anniversary, its members have re-elected Debra A. Cafaro (Chairman and Chief Executive Officer, Ventas, Inc.) as Chair, while approving its Board of Directors for the 2020 fiscal year (July 1, 2019 - June 30, 2020). The election results were announced by Roundtable President and CEO Jeffrey DeBoer during the organization's Annual Meeting earlier this month in Washington.

The Supreme Court of the United States (SCOTUS) issued a landmark property rights decision on June 21, ruling that the federal courts are open to decide landowners' claims for a Fifth Amendment "taking" of property by local regulatory agencies. In Knick v. Township of Scott , the nation's highest court reversed a 1985 precedent that had forced property owners to first bring takings lawsuits in state courts, which acted as "gatekeepers" to block the claims from ultimately getting to federal court.