House Passes Budget Resolution Setting the Stage for Reconciliation and Bipartisan Infrastructure Legislation
The House of Representatives today advanced the FY 2022 Budget Resolution after intense negotiations between Democratic leaders and moderate members of the Democratic caucus who had been seeking to decouple the Budget Resolution from the bipartisan infrastructure legislation and a more immediate vote on the bipartisan bill, which progressive members of the caucus opposed. In the end, leadership agreed to include language in the rule — which includes a deeming resolution essentially passing the Budget Resolution — stating that the House would vote on the bipartisan infrastructure bill by September 27. This appeased the moderate representatives and paved the way for passage. The Senate passed the Budget Resolution earlier this month.
The Budget Resolution directs committees in both chambers to advance “reconciliation” legislation that would cost in total up to $3.5 trillion, and this legislation will not be subject to filibuster in the Senate, thus it can pass both chambers with a simple majority. Congress will need to move fast on crafting the reconciliation legislation, which is our best chance for advancing NCSHA’s housing priorities this year. The Budget Resolution sets a nonbinding deadline of September 15 for committees of jurisdiction to finish their work on legislation in keeping with the reconciliation instructions.
Housing spending programs are under the jurisdiction of the Senate Banking Committee and House Financial Services Committee, and housing tax programs are under the jurisdiction of the Senate Finance Committee and House Ways and Means Committee. The Budget Resolution allocates $332 billion to the Banking Committee and $339 billion to the Financial Services Committee (the difference reflects the committees’ slightly different jurisdictions). It charges both the Finance Committee and Ways and Means Committee to report legislation that would reduce the deficit by $1 billion, with the expectation that the tax-writing committees will raise revenues to offset their own spending and likely spending by other committees. NCSHA previously summarized the Budget Resolution in more detail when it was first introduced by Senate Democrats two weeks ago.
While the Budget Resolution allows for up to $3.5 trillion in overall spending, moderate Democrats in both chambers are expected to push for some level lower than that amount. Now is a critical time for housing supporters to press to ensure that housing priorities — such as expansion and improvements to the Housing Credit, creation of a new Neighborhood Homes Credit to increase the supply of affordable for-sale homes, and funding for HOME, the Housing Trust Fund, and down payment assistance — make it into the reconciliation bill, as there will be many competing interests and priorities for members of Congress.
