CRE Finance Council is a trade association that is...

  • Dedicated exclusively to the nearly $6 trillion commercial real estate finance industry
  • Committed to promoting strong & liquid debt markets across platforms
  • The meeting place for industry professionals
  • The platform for establishing best practices, industry standards & federal policy
  • Comprised of approximately 400 companies and 19,000 individual members

CREFC News

News Archive

News

Reconciliation and Funding Update

February 11, 2025

For now, there has been limited public progress to address the upcoming March 14 government funding deadline. The Senate took the first steps to move on two reconciliation bills and House leaders continued to push for one bill. 

Why it matters: Republicans will need Senate (and likely House) Democrats to avert a government shutdown. Yet, the national attention has largely been focused on the flurry of executive actions, Department of Government Efficiency (DOGE), agency shutdowns, and the reaction to all of the above. 

  • The reconciliation discussions are separate from the shutdown deadline, but any course will require virtually all GOP members to agree. 
  • It is unlikely any Democrats will join the reconciliation efforts, which tend to be a partisan effort. 

The big picture: The process arguments remain largely the same. Senate Republicans want to give President Donald Trump early legislative victories with a first reconciliation bill focused on the:

  • Border, 
  • Defense, and 
  • Immigration. 
  • Tax would come later 

House leaders prefer a bill incorporating both to incentivize holdouts on tax with the trio of electoral priorities. Trump has, thus far, preferred this route. 

  • But the House has not been able to agree in principle on “top-line” numbers. Deficit hawks want to see a sizable $2 to $5 trillion in cuts. This would be a steep price considering the reauthorization of the 2017 tax law and the addition of Trump’s priorities, which could run well beyond $4 trillion in reduced revenue. 
  • Senators huddled with Trump at Mar-a-Lago last Friday in an effort to sway him to back two bills. Speaker Mike Johnson joined Trump at the Super Bowl. 
  • Breaking News: The House Budget Committee scheduled a markup on a reconciliation bill for Thursday, Feb. 13. At time of publication it is unclear what the scope of the markup will include.
By the numbers: Senate Budget Committee Chairman Lindsey Graham (R-SC) initiated the Senate process with an addition $340 billion in spending for defense and the border that would be “paid for” with commensurate funding cuts. Under the bill, the following committees can spend (add to the deficit) up to the following amounts:

  • Senate / House Armed Services: $150 billion
  • Judiciary: $175 billion
  • House Homeland / Senate Homeland Security and Gov Affairs: $175 billion
  • Transportation & Infrastructure / Commerce: $20 billion
Funding cuts would come from other committees with a wide range of jurisdiction. 

What’s next: The Senate Budget Committee will mark up its legislation this week, and the House GOP will aim to introduce a plan. Trump may weigh in based on his weekend conversations, or he may choose to continue to wait it out. 

Contact David McCarthy (dmccarthy@crefc.org) with any questions. 

Contact 

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Reconciliation and Funding Update
February 11, 2025
For now, there has been limited public progress to address the upcoming March 14 government funding deadline.

News

Fed Chairman Powell to Testify to House Financial Services and Senate Banking Committees

February 11, 2025

The Senate Committee on Banking and the House Financial Services Committee will hear testimony this week from Federal Reserve Chair Jerome Powell.

Why it matters: Powell testifies on a semiannual basis in front of both chambers of Congress. His testimony will be closely watched as he will be asked about various aspects of the U.S. economy and it’s outlook moving forward.

  • Members of both chambers are likely to question Powell on a variety of economic issues including interest rates, inflation, and the labor market. 
  • Commercial real estate issues could also come up, as they did in March 2024 when Powell testified in front of HFSC. For a detailed readout of how CRE was discussed during that hearing last year, please click here.

The dates and times of Chairman Powell’s testimony to both committees is included below.

Senate Committee on Banking

House Financial Services Committee

What they’re saying: Chair Powell last testified on the Hill in July 2024. His opening statement from those hearings is linked here.

Contact James Montfort (jmontfort@crefc.org) with any questions.

 

Contact 

James Montfort
Manager, Government Relations
202.448.0857
jmontfort@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Fed Chairman Powell to Testify to House Financial Services and Senate Banking Committees
February 11, 2025
The Senate Committee on Banking and the House Financial Services Committee will hear testimony this week from Federal Reserve Chair Jerome Powell.

News

Trump Aims to Close Carried Interest “Loophole” in Tax Bill

February 11, 2025

After meeting with House Republicans the White House press secretary outlined President Donald Trump’s tax priorities, which now include eliminating capital gains tax treatment for carried interest income.

Why it matters: Carried interest is a share of a fund’s profits — typically 20% — earned by investment managers as compensation, which is taxed at the lower capital gains rate rather than as ordinary income if certain conditions are met. Post enactment of the 2017 tax bill, real estate maintains greater flexibility in carried-interest treatment than other investments. 

  • President Trump has long been against carried interest treatment, but it survived the 2017 tax bill—with several key changes—and had not been part of the current conversation. 
  • The president’s current focus puts the treatment in much greater peril amid slim Congressional majorities.
Go deeper: 


White House Press Secretary Karoline Levitt
outlined Trump’s tax priorities as discussed with the House GOP: 

  • Extend the Tax Cuts and Jobs Act, 
  • Eliminate taxes on tips, Social Security benefits, and overtime pay, 
  • Fix the state and local tax (SALT) deduction,
  • (NEW) Eliminate tax breaks for billionaire sports team owners, 
  • (NEW) Close the carried-interest tax loophole, and 
  • Cut taxes on products made in America.
What’s next: The carried interest issue likely will mobilize key supporters of the provision, including the real estate sector, to oppose any changes to the current arrangement. While Trump has greater sway in Congress than in 2017, carried interest continues to enjoy strong support in both narrowly divided chambers. 

See our story on reconciliation for an update on the political jockeying around process. 

Contact David McCarthy (dmccarthy@crefc.org) with any questions.
 

Contact  

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Trump Aims to Close Carried Interest “Loophole” in Tax Bill
February 11, 2025
After meeting with House Republicans the White House press secretary outlined President Donald Trump’s tax priorities, which now include eliminating capital gains tax treatment for carried interest income.

We are lenders, investors & servicers.​

Become a Member

CREFC offers industry participants an unparalleled ability to connect, participate, advocate and learn!
Join Now

Sign Up for eNews