Lawmakers to Tackle Spending Bill, Coronavirus Relief, Tax Extenders and More
Time is running out for Congress to pass legislation funding the federal government beyond Dec. 11, when a current spending law expires. In order to avert a government shutdown, lawmakers appear poised to move a one-week extension in the coming days, which would extend the deadline until Dec. 18 to decide on a longer-term approach. Beyond that, it’s unclear whether Congress will pass a full, 12-bill omnibus spending package, or settle on an additional stopgap measure that lasts through the first quarter of 2021.
Also on the table – and complicating matters – is coronavirus relief. Despite a months-long stalemate, lawmakers on both sides of the aisle have recently expressed a renewed interest in passing legislation, which could potentially be passed alongside a federal spending bill. Last week, a bipartisan, bicameral group unveiled a $908 billion package that drew support from top Democrats, including House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer. The endorsement was notable given the two had previously insisted on at least $2 trillion in spending. However, Senate Majority Leader Mitch McConnell is pushing for a smaller bill that the White House said it would support.
Yet another item for Congress to consider is “extenders,” the group of 33 tax provisions set to expire at the end of the year. Among them are the Energy-Efficient Commercial Buildings Deduction and New Markets Tax Credit, both of which can impact commercial real estate development projects. Though there is broad support for renewing the provisions, many worry there may not be the political will to do so absent a coronavirus relief bill.
Finally, the White House is moving to codify its overhaul of permitting rules under the National Environmental Policy Act. The new rules aim to streamline the review process for infrastructure and other projects that receive federal funding, but were not expected to be issued until October of next year. Accelerating their implementation will likely make it more difficult for President-elect Joe Biden to undo them.