The Trump Administration has been in office for just over 30 days. The dizzying pace of executive orders makes it seem as though the White House is the center of all activity. But major negotiations have been taking place at the other end of Pennsylvania Avenue as Congress stares down a quickly approaching federal funding deadline on March 14. Discussions have become increasingly difficult as Democrats look for ways to stop the pace of administrative actions and their mistrust grows with each new executive order.

There is further tension as Republicans are simultaneously beginning the reconciliation process that will leverage the unique opportunity for passage with simple majorities sidestepping the need for any support from Democrats. The House and Senate Republicans have diverging views on a one- or two-bill strategy. The Senate proceeded first with a two-bill plan and passed a budget resolution that would cover priorities of border security, military and energy. This leaves the more contentious issues of a huge tax bill for later in the year. The House, despite some initial disagreement moved forward with a one-bill strategy covering all of the administration’s policy priorities. Negotiations are now underway to resolve the differences so that both chambers can pass the same version in order to allow the process to move forward.

The U.S. Treasury Department continues to use extraordinary measures to pay bills since the debt ceiling returned in early January. Increasing the debt ceiling could be addressed in the reconciliation process, but Republicans are likely to prefer that it is passed through a bipartisan bill.

It’s hard to see a path to compromise on government funding and the debt ceiling in the current highly partisan environment, but the alternative of no action has far-reaching implications for both parties. For that reason, something is likely to be worked out, but many think a March government shutdown will be hard to avoid.

Confirmation Hearing For FHFA Director Nominee, William Pulte

The Senate Banking Committee held a confirmation on Thursday, Feb. 27, for William Pulte to be the Director of the Federal Housing Finance Agency (FHFA). Additionally, the hearing will also consider nominees, Jonathan McKernan, to be Director, Bureau of Consumer Financial Protection, Dr. Stephen Miran, to be Chairman of the Council of Economic Advisors, Executive Office of the President, Jeffrey Kessler, to be Under Secretary of Commerce for Industry and Security, Department of Commerce.

Details on the hearing will be available in next month’s update.

CRA on Capping Overdraft Fees

House Financial Service Committee Chairman French Hill (R-AR) and Senate Banking Committee Chairman Tim Scott (R-SC) introduced Congressional Review Act (CRA) resolutions to overturn the Biden Administration’s Consumer Financial Protection Bureau’s (CFPB) final rule capping overdraft fees at banks and credit unions. Pennsylvania Congressman Dan Meuser (R-PA) joined the resolution.

The CRA is supported by the Consumer Bankers Association, Independent Community Bankers of America, American Bankers Association, and America's Credit Unions.

HFSC Requests Input on Community Banking

Following the House Financial Services Committee’s recent hearing examining the current landscape of community banking in the United States, the committee is requesting feedback from the public on its “Make Community Banking Great Again” principles, and the slate of bills the Committee considered during the hearing.

Interested members of the public can send their comments by March 31, 2025, to: fsc119@mail.house.gov.

More information can be found here.

Executive Order on Independent Agencies

President Trump issued an executive order that all executive departments and agencies, including the independent agencies, must submit for review all proposed and final significant regulatory actions to the Office of Information and Regulatory Affairs (OIRA) before publication in the Federal Register.

OIRA is a statutory part of the Office of Management and Budget within the Executive Office of the President. OIRA is the federal government’s central authority for the review of Executive Branch regulations, approval of government information collections, establishment of government statistical practices, and coordination of federal privacy policy.



Former FHFA Director, Mark Calabria, has been hired at OMB and following a temporary assignment at CFPB, he will be working with the independent agencies to review regulations.