WASHINGTON D.C. UPDATE WEBINAR SERIES TOPIC: POST-ELECTION UPDATE November 18, 2020 www.ndconline.org Panelists • Daniel Marsh, President, National Development Council • Bob Rapoza, President, Rapoza Associates 2 Presidential Election Results Senate Election Results New Senators Mark Kelly (D-AZ) Cynthia Lummis (R-WY) Ben Ray Lujan (D-NM) John Hickenlooper (D-CO) TBD • California Appointment (Kamala Harris Vacancy) • Two Georgia Runoffs Tommy Tuberville (R-AL) Roger Marshall (R-KS) Bill Hagerty (R-TN) House Election Results 6 Remaining House Races Final House margin: • Democratic majority of either 222-213 or 223-212 Republicans Favored Tossup • CA25: Christy Smith (D) vs Mike Garcia (R) • NY22: Claudia Tenney (R) vs Anthony • IA02: Rita Hart (D) vs Mariannette Miller-Meeks (R) Brindisi (D) Likely Republican • CA21: TJ Cox (D) vs David Valadao (R) Biden Agenda 8 Biden Agenda: Economics • Increase taxes on individuals and corporations ($3.375 trillion over ten years) • Increase spending by $5.37 trillion • $640 billion on housing • $1.6 trillion on infrastructure 9 Biden Agenda: Stimulus HEROES Act Template? • State and local aid ($1T) • Essential workers fund ($200B) • Testing and treatment ($75B) • Direct payments ($1,200- $6,000) • Payroll tax credit, PPP • Rental assistance, unemployment insurance boost, SNAP, post office funding • ACA funding • $1B for the CDFI Fund 10 Biden Agenda: Tax Policy Rates: • Repeal Trump tax cuts for earners over $400k • Corporate rate of 28%, increase top individual rate to 39.6% • Lift the cap on payroll taxes, increase in capital gains and estate tax, create a “true minimum” tax (21%) for multi-national corporations. Tax credits: • NMTC permanent ($5B), expanded • LIHTC expanded • Manufacturing credit (10%) • Revive renewable energy credits • Expanded EITC, child tax credit • Create first time homeowner credit, new credits for college tuition Biden Agenda: Infrastructure • $1.6 trillion plan • High speed internet to the entire country • Large investments in railroads, water systems, bridges, ports, inland waterways, airports, brownfield cleanup • Cities over 100,000 in population have clean transit options by 2030 Biden Agenda: Other Community Development Initiatives Housing: • First time homeowners tax credit ($15k) • Fully fund Section 8 • Increased eviction protections • Renters tax credit • Subsidies for teachers/public service workers who work in poor communities • Local Housing Policy Grants: $300 million in technical assistance grants to municipalities to eliminate discriminatory housing regs Other: • CRA reform • Re-empower the CFPB • Restore the Obama-era fair housing and lending rules • Small Business Opportunity Fund to create or expand small business lending programs that disproportionately benefit small businesses owned by Black, Latino, AAPI, and Native American people and those serving low- income communities. 13 Transition Team and Cabinet 14 Cabinet Speculation Housing and Urban Development Congresswoman Karen Bass Atlanta Mayor Keisha (D-CA) Lance Bottoms Former Jacksonville Mayor Alvin Brown 15 Cabinet Speculation: Treasury • Lael Brainard • Sarah Bloom Raskin • Janet Yellen • Roger Ferguson Cabinet Speculation: Agriculture • Former Senator Heidi Heitkamp • Representative Cheri Bustos (D-IL) • Representative Marcia Fudge (D-OH) 17 Transition Team Treasury: HUD • Don Graves (Key Bank) • Meaghan McCarthy (Housing Partnership Network) • Buzz Roberts (NAAHL) • Julia Gordon (National • Michael Barr Community Stabilization Trust) SBA: • Alejandro Avilés (UnidosUS) • Michael Roth • Cliff Kellogg 18 Key Committees 19 House Committee Leadership Changes • Appropriations Committee: Nita Lowey (D-NY) is retiring, possible successors Rosa DeLauro (D- CT); Marcy Kaptur (D-OH); Debbie Wasserman-Schultz (D-FL) • House Small Business Committee: Ranking Member Rep. Steve Chabot (R-OH-01) is term limited. The next most senior Republican is Del. Amata Radewagen (R-AS-AL). Reps. Troy Balderson (R-OH-12) or Kevin Hern (R-OK-01) may also vie for the position. • House Agriculture Committee: Chairman Colin Peterson (D-MN) was defeated. Likely successors: Rep. David Scott (D-GA), Rep. Jim Costa (D-CA) Committee Leadership Changes in Senate • Banking, Housing, & Urban Affairs Committee: • Pat Toomey (R-PA) succeeds Mike Crapo (R-ID). • Finance Committee: • Mike Crapo succeeds Chuck Grassley (R-IA) as either Chair or Ranking Member. • Committee on Small Business & Entrepreneurship: • Marco Rubio (R-FL) may keep the Intelligence Committee gavel, giving up his chairmanship of the committee. Rand Paul (R- KY) and Tim Scott (R-SC) are next in line. 21 If the Senate Flips… • Budget: Bernie Sanders (D-VT) • Appropriations: Patrick Leahy (D-VT) • Agriculture: Debbie Stabenow (D-MI) • Commerce: Maria Cantwell (D- WA) • Finance: Ron Wyden (D-OR) • HELP: Patty Murray (D-WA) • Small Business: Ben Cardin (D- MD) • Banking: Sherrod Brown (D-OH) 22 • Continuing Resolution expires on December 11th. • COVID-19 ticks up, but the “art of the deal” remains elusive for relief legislation. THE LAME DUCK LAME DUCK: What’s the latest on COVID-19 stimulus? Senate Proposal House Proposal McConnell Skinny Coronavirus Bill-- HEROES Act, revision--$2.2 trillion $300 billion • $1 billion for the CDFI Fund • $9 billion rescinded from CARES Programs (not less than $25 Act Debt Relief, including million is directed to benefit principal and interest payments Native communities) (P&I) for 7(a) (including Middle ground? • Includes Warner/Meeks Community Advantage), 504, Neighborhood Jobs and and microloan program loans Investment Act provisions made before September 27. • Updates PPP, provides new • PPP, including set aside of 25% funds, allows small businesses or up to $15 billion for experiencing significant loss a community lenders second draw of funding. • P&I payment extensions for SBA loans FY 2021 Appropriations 25 FINAL THOUGHTS.