News Type: Roundtable Weekly

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.

Senate Passes Bipartisan ROAD to Housing Act

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The U.S. Senate passed the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 (S. 2651) on Oct. 9, as part of its version of the National Defense Authorization Act (NDAA)—marking the first bipartisan, comprehensive housing package advanced in more than a decade. (MultiFamily Dive, Oct. 15)

ROAD to Housing Act

  • Introduced by Senate Banking Committee Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), the bipartisan bill passed the committee 24–0 in July before its inclusion in the NDAA. (CRE Daily, Oct. 14)
  • The legislation builds on years of bipartisan committee work, stakeholder engagement, and multiple hearings. It focuses on streamlining regulations, incentivizing construction, modernizing housing finance and disaster-recovery programs, and supporting vulnerable populations such as veterans and the homeless. (HousingWire, Oct. 10)
  • The bill incentivizes states and cities to boost housing supply by cutting red tape, streamlining federal inspections, and eliminating duplicative regulations. (The Hill, July 29)
  • Key pillars of the bill focus on expanding and preserving supply, improving affordability and access, enhancing accountability and fiscal responsibility, and strengthening oversight of federal housing programs. (Press Release, Oct. 9 | Roundtable Weekly, Aug. 1)
  • 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 )
  • Sen. Warren said, “This landmark legislation—the first of its kind in more than a decade—takes important steps to boost the nation’s housing supply, improve housing affordability, and increase oversight and efficiency of federal regulators and housing programs. I look forward to working with my colleagues in the House to get the bill to the President’s desk.” (Press Release, Oct. 9)

What’s Next

  • The bill now heads to the House of Representatives for consideration before going to the President’s desk to be signed into law.

Roundtable on the Road

  • This week, RER President and CEO Jeffrey D. DeBoer was a featured speaker at NYU Stern’s Chen Institute National Apartment Finance & Investment Summit, where he was interviewed by Gregg Gerken (Former Head of Commercial Real Estate and Executive Vice President, TD Bank) on national policy outlook, housing affordability, housing finance reform and agency privatization, and capital availability.
  • “Safe, affordable housing is essential to strong communities and a healthy economy,” said DeBoer. “The nation’s chronic underbuilding has created an affordability crisis that demands coordinated action. The ROAD to Housing Act that recently passed reflects the kind of public-private collaboration needed to address the housing shortage by aligning federal incentives with local action to unlock private capital, expand supply, and strengthen communities nationwide.”

RER will continue engaging with policymakers and industry leaders to promote bipartisan solutions and regulatory reforms that expand housing supply, improve affordability, and strengthen economic stability.

Roundtable Urges Treasury to Clarify, Confirm Eligibility of Real Estate for Bonus Depreciation under the OB3 Act

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The Real Estate Roundtable (RER) wrote to the Treasury Department this week, urging guidance to ensure the One Big Beautiful Bill (OB3) Act’s restored 100 percent bonus depreciation provision is successful in spurring real estate investment, job creation, and economic growth. (Letter, Oct. 17)

Background

  • The Tax Cuts and Jobs Act of 2017 capped taxpayers’ ability to deduct their interest expense on business debt. At the same time, the law created an exception that allows real estate businesses to fully deduct their interest expense if they make a “real property trade or business (RPTOB) election.”
  • Taxpayers who make the RPTOB election are subject to the alternative depreciation system and ineligible for bonus depreciation.
  • By modifying the business interest limitation rules, the OB3 Act made it easier for property owners to fully deduct their business interest and qualify for bonus depreciation. However, the legislation did not expressly clarify that existing property owners could revoke or reverse a prior RPTOB election.
  • Guidance is needed to ensure taxpayers’ ability to change a RPTOB election and claim the full benefit of the bonus depreciation provision. (Letter, Oct. 17)

Why It Matters

  • The restoration of 100 percent expensing for capital expenditures, including tenant and nonresidential property improvements, is among the most significant provisions in the OB3 Act.
  • The Tax Foundation estimates bonus depreciation will boost long-run GDP by 0.6 percent and generate the equivalent of 145,000 jobs. (Tax Foundation, July 4)
  • In the absence of additional tax guidance, however, many taxpayers will not qualify for bonus depreciation with respect to their property improvements.

RER Recommendations & Perspective

  • Ample precedent and authority exist for Treasury to clarify that, in light of the changes made in the OB3 Act, taxpayers can amend and change their prior RPTOB elections. (See Revenue Procedure 2020-22, issued following passage of the CARES Act of 2020)
  • With clear implementing rules, bonus depreciation “will facilitate the modernization and repurposing of real estate assets, including underutilized office buildings, shopping centers, hotels, and mixed-use properties,” the RER submission stated.
  • “Small businesses will benefit from the ability to immediately expense their leasehold improvements,” the letter continued. “The capital expenditures spurred by expensing will create new spaces for commerce to flourish, boost property values, and strengthen communities by increasing local tax revenue critical for public services like schools and law enforcement.”

The submission from RER President and CEO Jeffrey DeBoer was addressed to Treasury Assistant Secretary for Tax Policy and Acting IRS Chief Counsel Kenneth J. Kies. RER’s Tax Policy Advisory Committee (TPAC) is continuing to review and develop recommendations for Treasury with respect to the implementation of the monumental tax legislation signed into law this summer.

Flood Insurance Lapse Highlights Need for Long-Term Reform

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The National Flood Insurance Program (NFIP) expired Oct. 1 as partisan gridlock in Washington dragged into a second week, halting new policies and renewals for millions of Americans and real estate transactions in flood-prone areas.

State of Play

  • The NFIP’s lapse stems from the broader government shutdown fight, with each party blaming the other for inaction. (E&E News, Oct. 8)
  • House Republicans say Democrats have repeatedly blocked their short-term funding bill, which includes a seven-week NFIP extension. Democrats counter that GOP leaders have refused to hold a stand-alone vote on reauthorization while keeping the House largely in recess.
  • Speaker Mike Johnson (R-LA) said the NFIP “will be reauthorized in due course,” but called the program’s lapse one of several “leverage points” in the broader negotiations. (E&E News, Oct. 8)
  • Senate Majority Leader John Thune (R-SD) on Tuesday cited the NFIP in floor remarks for the first time since the shutdown began, calling it one of several programs Democrats are stalling by opposing the GOP’s plan to reopen the government.
  • Meanwhile, FEMA has paused NFIP operations, unable to issue new policies or renewals. The program also cannot ensure payment of claims if major flooding occurs during the shutdown.

Roundtable Advocacy

  • The Real Estate Roundtable (RER) continues to urge Congress to enact a sustainable, long-term NFIP reauthorization with appropriate reforms.
  • A robust and stable program is essential for residential markets, catastrophe insurance capacity, and the broader economy. (Roundtable Weekly, Sept. 19)
  • Lawmakers from both parties have long called for an overhaul and signaled interest in pursuing longer-term reforms to the program.
  • The rising cost of insurance premiums due to the growing number of billion-dollar natural disasters reinforces the importance of the NFIP.
  • While Congress has typically renewed the NFIP retroactively after past lapses, there is no guarantee this time. A delayed reauthorization could further disrupt real estate markets and delay policy effective dates. (NAHB, Oct. 1)

Housing Impact

  • The National Association of Realtors (NAR) estimates the lapse could stall or cancel about 1,400 home sales per day until the NFIP resumes operations. (NYT, Oct. 9)
  • “Each day that passes during the shutdown, potential real-life impacts will be felt in America’s housing market, which accounts for nearly 20% of the US economy,” said Shannon McGahn, (EVP and Chief Advocacy Officer, NAR) (Bloomberg, Oct. 9)
  • NFIP provides $1.3 trillion in flood insurance to 4.7 million policyholders across 23,000 communities. It underpins nearly 500,000 home sales annually, supports 1 million jobs, and contributes $70 billion to the U.S. economy. (NAR, Oct. 7)
  • While some private insurers are expanding their offerings, they still represent only a fraction of the market—and typically charge higher premiums, adding costs for homebuyers. (Bloomberg, Oct. 9)

Congressional leaders have vowed to revisit flood insurance reauthorization once the government restores funding. RER will continue to advocate for a long-term NFIP solution.

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.

Record-Level Investments Aim to Enhance Grid Reliability

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Unprecedented demand for electricity is prompting major private sector investments to shore up the grid’s security and reliability, amid the Trump Administration’s cancellation of Biden era clean energy funds.

Billions in Private Investments

  • Investor-owned electric companies plan to invest an unprecedented record-high $208 billion in capital projects this year — a $30 billion increase from 2024 — to modernize transmission systems, expand capacity, and manage consumer costs, according to new Edison Electric Institute (EEI) data. (Axios, Oct. 7)
  • “Our new data shows how our industry is strengthening the energy grid with real investments—in jobs, critical infrastructure, and communities across the nation,” Edison Electric Institute President and CEO Drew Maloney said in a statement. (Axios, Oct. 7)

Major Energy Policy Shift

  • Meanwhile, the Trump administration is cutting federal support “to get low-cost renewable projects on the grid”—cancelling billions in Biden administration project funding—and “pinning many of its promises of energy affordability on a nuclear moon shot.” (PoliticoPro, Oct. 6).
  • The Department of Energy (DOE) announced millions to “reinvigorate America’s coal industry” (Release, Sept. 25), while the Department of the Interior (DOI) has opened up more federal lands to coal leasing. (Release, Sept. 29)
  • The Environmental Protection Agency (EPA) is pushing for a natural gas pipeline “vital to New England’s grid stability.” (Release, Aug. 6)
  • The sharp policy swing has some members of Congress calling for a fuel-agnostic, all-of-the-above national energy strategy. “We need every electron we can get if we want to be energy dominant. To do that, we should take every electron,” said Sen. John Curtis (R-UT). (PoliticoPro, Oct. 6)

The Drivers

  • Electricity demand is spiking from a “perfect storm” of multiple forces:
  • AI and Data Centers: Expected to account for nearly half of global demand growth through 2030. (IEA 2025)
  • EV Charging: Electric vehicles are expected to raise global power demand 6–8% by 2035 (IEA 2024)
  • Manufacturing Reshoring: New U.S. facilities for semiconductors, batteries, and critical minerals production will significantly increase industrial load (CSIS 2024)
  • Crypto Mining: U.S. Bitcoin mining consumes electricity equal to powering 6 million homes (EIA 2024)
  • Building Electrification: 40% of U.S. buildings now use electric heating, driven by codes, tenant preferences, and investor sustainability demands (BOMA 2023)

Permitting Reform

  • Permitting reform continues to be a top bipartisan priority on Capitol Hill, as lawmakers debate how best to reform the federal approval process for energy infrastructure projects. (Utility Dive, Sept. 18 | Roundtable Weekly, Oct. 2024)
  • Last month, the bipartisan House Problem Solvers Caucus released a framework to speed construction of transmission lines, pipelines, and power projects to meet surging energy demand. (PoliticoPro, Sept. 18)
  • In September, the House Natural Resources Committee held a legislative hearing on a trio of bipartisan permitting reform bills—including Chair Bruce Westerman’s (R-AR) SPEED Act, aimed at streamlining the permitting process. “My goal is to have a big permitting bill sitting over at the Senate for them to consider with some bipartisan support.” (PoliticoPro, Sept. 18)
  • At an event last month, White House National Energy Dominance Council Executive Director Jarrod Agen said, “Probably the top priority for us from an energy perspective” is permitting reform to build transmission lines and pipelines. (E&E News, Sept. 8)
  • RER believes permitting reform is essential for advancing our economy’s energy transition. The current fragmented system of administrative reviews and approvals hinders the delivery of quick, low-cost, reliable electricity to our nation’s homes and commercial buildings. (Roundtable Weekly, March 7)

Energy supply, grid reliability, and infrastructure investment will be a central topic at RER’s Fall Meeting (Roundtable-level members only) on Oct. 27–28 in Washington, D.C.

New Lumber Tariffs Spark Housing Affordability Concerns

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The Trump administration announced new trade measures this week aimed at building materials. The plan imposes a 10% duty on imported softwood lumber and a 25% tariff on kitchen cabinets and vanities—set to rise to 50% in 2026. The added cost burden threatens to ripple through the housing market, raising barriers to affordability at a time of heightened demand. (White House, Sept. 29) (NYT, Oct. 2)

State of Play

  • The new tariffs come on top of existing surcharges, marking a sharp escalation in trade measures against foreign suppliers of housing and construction products. (GlobeSt. Oct. 1)
  • President Trump’s tariff proclamation found that current wood imports “are weakening our economy, resulting in the persistent threats of closures of wood mills and disruptions of wood product supply chains” and putting at risk the United States’ ability “to meet demands for wood products that are crucial to the national defense and critical infrastructure.” (White House Action, Sept. 29)
  • Analysts warn that the tariffs could exacerbate the housing shortage by slowing construction, and, combined with earlier steel and aluminum tariffs, undermine the momentum that Fed rate cuts might otherwise provide. (NYT, Oct. 2)
  • The U.S. imports roughly one-third of the lumber it consumes because domestic production cannot meet demand. Canada supplies nearly 85% of U.S. lumber imports. (NAHB, Sept. 30)

CRE & Affordable Housing

  • Tariffs may present several challenges for commercial real estate, including increased construction costs, potential project delays, and heightened uncertainty among investors. (CBRE, March 19 | Roundtable Weekly, April 4)
  • “These new tariffs will create additional headwinds for an already challenged housing market by further raising construction and renovation costs,” said National Association of Home Builders (NAHB) Chairman Buddy Hughes.
  • Builders caution the measures will add to affordability pressures for renters and homebuyers already facing tight supply. (CRE Daily, Oct. 1)
  • Last month, it was reported that President Trump may declare a national housing emergency this fall. (Roundtable Weekly, Sept. 12)
  • As part of the broader effort to address the nation’s housing shortage, property conversions are gaining momentum. Manhattan alone launched 4.1 million square feet across 15 projects through August 2025, the fastest pace since 2008, according to a recent Cushman & Wakefield report. (GlobeSt., Oct. 2)
  • RER urges federal policymakers to support incentives for these transformative projects, helping to meet the nation’s growing housing demand. (RER Annual Report – Housing 2025)

RER will continue to engage with policymakers to reduce regulatory burdens and eliminate other obstacles that are impeding development and expand America’s housing infrastructure.

Treasury Issues Guidance on Rural Opportunity Zone Investments

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The Treasury Department and Internal Revenue Service (IRS) this week issued Notice 2025-50, providing guidance on Opportunity Zone (OZ) investments in rural areas under the One Big Beautiful Bill (OB3) Act. The notice designates 3,309 census tracts—about 38% of the OZ map—as rural, giving investors and developers clarity on how the new rules apply. (IRS, Sept. 30)

New Guidance

  • Rural definition: Any census tract outside a city or town with a population greater than 50,000—and not an adjacent urbanized area—qualifies as rural. (BisNow, Oct. 1)
  • 3,309 tracts designated: The notice identifies 3,309 rural OZ census tracts, representing about 38% of all OZs designated in 2018.
  • Lowered improvement threshold: Effective July 4, 2025, real estate projects in rural OZs must meet a more manageable 50% substantial improvement test—down from 100%—to qualify for OZ tax benefits. The substantial improvement test governs the level of new investment required, relative to the cost of the property.
  • The guidance applies only to the current OZ map. Treasury said definitions for future OZ designations, which will take effect in 2027, will be addressed separately. (PoliticoPro, Sept. 30)
  • The latest guidance enhances certainty for investors and developers seeking to expand housing and economic opportunity in rural America.

Roundtable Advocacy

  • The Real Estate Roundtable (RER) has long championed OZs as a transformative tool to drive economic growth and increase affordable housing in underserved communities. (Roundtable Weekly, April 4)
  • RER members have used OZ capital nationwide to finance multifamily housing, mixed-use developments, and life sciences facilities that support job creation and local tax revenues.
  • At the American College of Real Estate Lawyers (ACREL) Annual Meeting recently, RER President and CEO Jeffrey DeBoer and SVP & Counsel Ryan McCormick addressed the enhanced role of OZs in revitalizing communities. (Watch Video)
  • This week, RER’s Opportunity Zone Working Group met virtually with staff from Sen. Tim Scott (R-SC) office, the leading Congressional sponsor and advocate of OZs, to discuss next steps in the implementation of the OZ reforms and enhancements.

Why It Matters

  • Since 2017, OZs have spurred more than $120 billion in investment—much of it directed toward new housing, helping to expand supply, create jobs, and revitalize economically distressed areas.  (RER Annual Report 2025)
  • Housing impact: OZs accounted for 20% of all new multifamily units in 2023, up from 8% when the program began. (ULI, Sept. 22)
  • Economic impact: OZ incentives nearly doubled housing production in designated tracts from 2019 to 2024, generating more than 313,000 new residential addresses at relatively low fiscal cost. (Economic Innovation Group, March 11)

RER’s Tax Policy Advisory Committee (TPAC) and Opportunity Zone Working Group will continue to evaluate OZ changes, address technical issues, and ensure the industry’s voice is heard as Treasury and IRS implement the new law.

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.

New Visa Bill Addresses Construction Worker Shortage; White House Unveils “Trump Cards”

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Rep. Lloyd Smucker (R-PA) this week reintroduced the Essential Workers for Economic Advancement Act (H.R. 5494), bipartisan legislation aimed at expanding visa opportunities to address labor shortages in construction, hospitality, and other sectors. (Rep. Smucker Press Release)

Why It Matters

  • The Essential Workers bill proposes a new H-2C visa program for critical jobs that do not require a college degree but are essential to business operations and U.S. economic growth. (Coalition Statement, Sept. 17)
  • “Job creation and job preparation must go hand-in-hand,” Rep. Smucker said. “Investing in opportunities to strengthen our workforce and grow our economy is a win-win for American workers and businesses.” (Rep. Smucker Press Release)
  • There is an estimated shortage of 500,000 construction workers. Without additional labor, efforts to build more housing and address the nation’s affordability crisis will remain stalled. (Associated Builders and Contractors, Jan. 24)

Roundtable View

  • The Real Estate Roundtable (RER) commended the legislation.
  • “Now that the administration has controlled the emergency at the border, we need to address the nation’s affordable housing emergency—and we must build more supply to get out of it,” said Jeffrey D. DeBoer, RER President and CEO.
  • DeBoer continued: “The labor shortage is exacerbating the housing shortage … Congress should develop policies to increase our supply of construction workers so they can build all types of homes in communities across the country. The bipartisan Essential Workers for Economic Advancement Act is exactly the kind of smart response we need.” (Rep. Smucker Press Release, Sept. 23)
  • At the recent 2025 C5 + CCIM Global Summit in Chicago, DeBoer also remarked that a targeted construction visa program is essential to expand the labor force and increase housing supply.
  • 21 other business groups support the bipartisan Essential Workers bill, including the American Hotel & Lodging Association, Associated General Contractors of America, Business Roundtable, Leading Builders of America, and the National Association of Home Builders.

Trump “Gold Card”

  • On Sept. 19, 2025, the White House released an Executive Order, fact sheet, and website announcing Gold and Platinum “Trump Cards.” These programs are intended to grant permanent residency in the U.S. for immigrants with high net worth.
  • The Secretaries of Commerce, State, and Homeland Security will coordinate and establish a program within 90 days that expedites “green cards” issued under the EB-1 and EB-2 visa categories for foreign nationals who make a “significant financial gift to the Nation.”
  • Gold Card Website: TrumpCard.gov outlines new residency options tied to multimillion-dollar “gifts” to the U.S. to obtain a Gold Card ($1 million), Corporate Gold Card ($2 million), or Platinum Card ($5 million).
  • Following the EO’s release, RER developed a fact sheet summarizing what we currently know about the Trump Card program – and how it may interact with the EB-5 “regional center” program, which provides visas for foreign investors in infrastructure, real estate, and other U.S. development projects. (RER Fact Sheet)
  • EB-5: The “regional center” program rests on firm statutory foundation through 2027 under the EB-5 Reform and Integrity Act, enacted by Congress in 2022. EB-5 dates back to the 1990s and is the most established investor visa pathway with a proven record of creating jobs for U.S. workers. (Forbes, Sept. 22)
  • H-1B changes: The administration also announced that a $100,000 fee would accompany new applications for H-1B visas for highly-skilled workers— intensifying debate between critics who argue foreign workers displace Americans and business leaders who view overseas talent as vital to U.S. competitiveness. (Axios, Sept. 20 | The Hill, Sept. 23)
  • At a Sept. 19 press conference, Commerce Secretary Howard Lutnick said the new visa programs and HB-1 fee could raise over $100 billion, which President Donald Trump pledged the government will use toward tax cuts and debt reduction. (Tax Notes, Sept. 23)

RER Advocacy

  • In March, RER sent a letter to Sec. Lutnick, endorsing the “Gold Card” proposal, and reiterating the real estate industry’s longstanding support for the EB-5 program. (Roundtable Weekly, March 14)
  • As RER’s letter emphasized, the “Gold Card” and EB-5 must work in tandem to achieve multiple objectives: attract top global talent, drive foreign investment to the U.S., and create jobs for American workers. (Letter, March 11)

RER will continue to advocate for common sense immigration policies that prioritize national security while also boosting U.S. economic growth, productivity, and housing supply.