A package that could be the first housing legislation passed by Congress in more than a decade is facing a number of hurdles — namely, unhappy House Republicans.
The bill is poised to receive a vote in the Senate as soon as this week. But Republican lawmakers in the House are demanding that the Senate incorporate House-passed provisions directed at the deregulation of community banks and stricter language to limit the use of central bank digital currency.
“The way to pass a bill is not to disregard the House product in a bicameral process. We want our views taken into account,” Rep. Andy Barr, a member of the Financial Services Committee and chair of the Subcommittee on Financial Institutions, told NOTUS.
Barr is one of the lawmakers who wants the final package to ease regulations on community banks to allow for more lending. Many Republicans see that as essential to passing legislation to address housing affordability and made a point of including an entire section of related provisions in their bill, which passed the House in February.
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But the Senate left out provisions targeted at community bank deregulation in its legislation, known as the 21st Century ROAD to Housing Act.
“There are members in the House whose provisions and views were not accounted for in the current iteration of the 21st Century ROAD to Housing Act,” Rep. French Hill, who chairs the House Financial Services Committee and spearheaded the House’s bill, said in a statement first reported by Punchbowl News on Friday. “Further negotiations, including a possible conference, may be needed.”
Hill said that House Republicans want a final package to include a provision that would limit the Federal Reserve from issuing central bank digital currency. The Senate package’s provision only bans it temporarily.
More than two dozen House Republicans signed a letter asking for a permanent ban, which has long been a conservative priority, to be added to the Senate’s bill.
“The Senate must amend the bill to include these provisions before it comes to the House of Representatives. Otherwise, we will do everything we can to ensure the 21st Century ROAD to Housing Act is dead on arrival,” the letter, signed by lawmakers including Reps. Mike Cloud, Warren Davidson and Chip Roy, said.
NOTUS previously reported that House lawmakers were eager to negotiate with the Senate to push the legislation through. The Senate’s bill, sponsored by Sens. Tim Scott and Elizabeth Warren, cleared a procedural hurdle in the Senate last week in a 90-8 vote and is poised for a vote on the chamber floor this week.
In response to Republican lawmakers’ requests, Sen. Ted Cruz filed an amendment to the housing package on Friday that would permanently ban the Federal Reserve from issuing central bank digital currency.
Asked on Monday if he believed there was momentum around his amendment, he told NOTUS: “I do.”
Senate Majority Leader John Thune told reporters on Capitol Hill Monday day that he hopes the current Senate package will be passed by the House after the Senate’s final vote.
“We modified the Senate bill in a way that the House Republicans had insisted, and hopefully that’ll be enough to get their support,” Thune said.
A Senate aide also told NOTUS senators are confident in their ability to get the legislation through, pointing to the bipartisan support for it. The aide also cited the president’s support for the legislation, and argued that if House Republicans oppose it, they would be going up against one of the president’s priorities.
But the Senate bill could hit another roadblock put up by its most high-profile proponent: President Donald Trump.
Trump on Sunday said that signing the Save America Act, a bill whose provisions includes a requirement for a photo ID to vote, was his biggest priority.
“I, as President, will not sign other Bills until this is passed,” the president posted on Truth Social.
Senate Republicans are still eager to see the housing package passed and are downplaying the president’s post.
“The president, of course, never served on the Senate, and when he said that, I don’t think he understood the impact that it would have on our other business,” Sen. John Kennedy said Monday regarding Trump’s post. “By now, he’s probably been briefed, and I don’t know if he still feels that.”
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