Midterm election results bring divided government
Following the November mid-term elections, Democrats regained control of the House of Representatives, following eight years of Republican leadership. This has the potential to dramatically change affordable housing policy in the next Congress (116th Congress). The following is a brief synopsis of what the elections mean for the current Congress and the make-up of the new Congress, particularly in the House of Representatives.
Unfinished business in the Lame Duck session
Having lost the House of Representatives, Republicans may attempt to enact some of their policy priorities, including another tax reform bill, before the House shifts to Democratic control in January. NAHMA and our industry partners will be monitoring any attempts to pass year-end tax legislation. Any tax legislation could present an opportunity to enact important changes to the LIHTC, such as a minimum 4 percent Housing Credit rate and other proposed reforms from the Affordable Housing Credit Improvement Act that have not yet been enacted.
In addition to potential tax reform, the current Congress must fund the government before it expires in early December. Congress has not enacted 7 of the 12 fiscal year (FY) 2019 spending bills, including HUD, Agriculture (rural housing), and Treasury. All three agencies are operating at last year’s spending levels under a continuing resolution (CR), which expires on Dec. 7. NAHMA expects Congress to either extend the CR into January or February, or to pass FY19 omnibus appropriations legislation to fund the remaining agencies through the fiscal year.
Notable Leadership Changes to Key House Committees
House Leadership
The new 116th Congress will bring new committee assignments. With Democrats set to be the majority of the House, current Democratic (Minority) Leader Nancy Pelosi, D-CA, will likely become speaker again. The current House Speaker Paul Ryan, R-WI., previously announced his retirement. A few notable House Republican leaders will race for the incoming House Republican (Minority) leader, including the current Majority Leader Kevin McCarthy, R-CA, and House Freedom Caucus Founder Rep. Jim Jordan, R-OH.
Appropriations Committee
The current House Appropriations Committee Ranking Member Nita Lowey, D-NY, is likely to become Chairwoman. The current committee Chairman Rodney Frelinghuysen, R-NJ, is retiring, so Republicans will race to decide the Ranking Member on the committee.
Financial Services Committee
The current Financial Services Committee Ranking Member Maxine Waters, D-CA., will likely become the Chairwoman. The current Financial Services Committee Chairman Jeb Hensarling, R-TX, is retiring, so Republicans will have a race to decide the incoming Ranking Member.
Ways and Means Committee
LIHTC advocate and current committee Ranking Member Rep. Richard Neal, D-MA, will become Chairman of the House Ways and Means Committee. Current Chairman Rep. Kevin Brady, R-TX, will become the Ranking Member.
Senate Committees
Republicans are maintaining control of the Senate, so there is not much movement on that side of Legislative Branch. One notable change is the Senate Finance Committee leadership following Chairman Hatch’s (R-UT) retirement. Either Sen. Chuck Grassley (R-IA) or Mike Crapo (R-ID) will become Senate Finance Committee Chairman.
In conclusion, NAHMA members will need to meet new and old lawmakers, educate the new Congress about the importance of affordable housing in their districts, work with new committee members, and manage the challenges of a divided government. Most of the media attention will be focused on the inevitable oversight disagreements between the House Democrats and President Trump’s Administration. The affordable housing industry must push forward to find opportunities and combat any challenges as the current Congress ends and a new one begins.