Policy Environment

Congress took its first two-week recess since President’s Trump’s inauguration. Most members of Congress spent the time meeting with constituents. Being in-district often has a profound impact as constituents bring a different angle far from the daily headlines, and voters are ultimately the most important audience.

Members of Congress often return from recess with renewed demands that can have a profound impact on the legislative landscape. This time, the demands may spill over into the negotiations within the Republican Party on the massive tax bill that will contain many of the Trump Administration’s priorities. Leadership will have to carefully navigate the input to keep the nearly perfect party unity needed to pass the bill with such narrow majorities through the reconciliation process.

Further complicating discussions is the need to raise the debt ceiling. The U.S. Department of Treasury continues to avoid defaulting on debt obligations by using extraordinary measures. New estimates show Congress will need to act as early as July. This further complicates the ongoing negotiations with some Republicans preferring a bipartisan bill, though limited options may force the provision into the reconciliation bill.

Trump has nearly filled his Cabinet, and many other prominent nominees continue to work their way through the Senate. The Senate Banking Committee recently held a hearing for Federal Reserve Governor Michelle Bowman to be Vice Chairman for Supervision, while nominees for Comptroller of the Currency, Jonathan Gould, and Director of the Consumer Financial Protection Bureau, Jonathan McKernan, await full Senate consideration.

The Trump Administration continues to focus on reducing the size of government agencies and deregulation. The Office of Management and Budget put out a public request for input on any and all regulations that should be rescinded.

OMB Request for Information on Deregulation

The Office of Management and Budget (OMB) released a request for input on ideas for deregulation. OMB asked that submissions identify rules to be rescinded and provide detailed reasons for their rescission on any and all regulations currently in effect.

Comments are due by May 12, 2025.

Bipartisan Housing Supply Framework Act Introduced



U.S. Senators Lisa Blunt Rochester (D-Del.), John Fetterman (D-Pa.), Mike Crapo (R-Idaho), and Thom Tillis (R-N.C.) introduced the bipartisan, bicameral Housing Supply Frameworks Act. The bill was introduced in the House by U.S. Representatives Brittany Pettersen (D-CO-07) and Mike Flood (R-NE-01).

The Housing Supply Frameworks Act (S.1299) will provide resources to help communities rehaul their zoning and land-use regulations. The bill directs the U.S. Department of Housing and Urban Development (HUD) to provide a new framework to assist localities in breaking down barriers and to increase the supply of affordable housing across income levels.

Congress Uses Congressional Review Act to Nullify CFPB Overdraft Rule

The House and Senate leveraged the Congressional Review Act to pass S.J.Res.18 that nullifies the final rule issued by the Consumer Financial Protection Bureau (CFPB) titled Overdraft Lending: Very Large Financial Institutions, published on Dec. 30, 2024. The rule revises provisions regarding charges for insufficient funds in a customer’s bank account (i.e., overdrafts) at very large financial institutions. Under the rule, these institutions must (1) cap overdraft charges at $5; (2) with justification, cap charges at a higher amount; or (3) handle overdrafts as credit and comply with applicable Truth in Lending Act disclosure requirements.

The resolution will need to be signed by President Trump to become effective.