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Republican policymakers are considering using tax breaks to deliver on President Donald Trump’s promise to shut institutional investors out of housing ahead of Senate action next week.
In a meeting this week, Treasury Secretary Scott Bessent told House Republicans “this is not a free market for the American family, because investors … have special tax write-offs … that aren’t available to single families,” Rep. Marlin Stutzman, R-Ind., recounted to Semafor.
“The secretary was very clear he’s open to multiple ideas — but the tax incentives seem to be the one that may have a little bit of traction.”
Sen. Mike Rounds, R-S.D., said that senators were weighing both “tax incentives for individual homeownership” as well as “tax incentives to decrease investment companies” — but he’d rather see lawmakers focus on the former.
Meanwhile, Trump met with New York Mayor Zohran Mamdani on housing Thursday.
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Hill Republicans have said they’re willing to play ball on Trump’s idea if it means getting separate bipartisan housing legislation over the finish line. But Rounds and other GOP lawmakers told Semafor they still have concerns about meddling in the market.
“I’m not convinced the way you increase the number of people buying houses is to stop them from buying houses,” Sen. John Kennedy, R-La., said.
The White House had signaled to the chairs of the House Financial Services and Senate Banking committees that it would put its weight behind whatever effort does more to crack down on institutional investing, people familiar with the talks said. Now, plans for a House committee vote are on ice as the Senate weighs merging its bill with still-undecided House provisions and institutional investor language.
“The White House has been encouraged by the productive discussions with Congress to deliver on this presidential priority for the American people,” White House spokesperson Davis Ingle said.
The White House has circulated its own proposal and Sens. Josh Hawley, R-Mo., and Jeff Merkley, D-Ore., introduced a pair of related bills Thursday (including one that would focus on tax breaks). But it’s still unclear what, specifically, lawmakers might advance. Meanwhile, the private sector continues to flood members with concerns.
“Ever since the White House released their draft proposal, my phone has been ringing off the hook,” one House Republican aide told Semafor. “We are hearing from everyone — I don’t believe anyone would be spared from the proposed legislation.”
Notable
- Sen. Elizabeth Warren, D-Mass., led Democrats in drafting their best-case scenario, which would also target tax breaks, Semafor first reported.
Burgess Everett contributed to this report.