Debt Limit Crisis averted; Over 100 Members of Congress Cosponsor AHCIA
We want to update you on the busy, but productive, week in Washington D.C., as the President and Congress worked to avoid a catastrophic debt limit breach that would have created serious consequences for the U.S. economy.
For weeks, President Joe Biden and House Speaker Kevin McCarthy (R-CA) struggled to craft a compromise that could avert the looming debt limit crisis even as Treasury Secretary Janet Yellen warned that action on the debt limit would be necessary by June 5th to avoid default. The two leaders finally reached a compromise on May 27, 2023, and the plan was introduced on May 29th.
H.R. 3746, the Fiscal Responsibility Act of 2023, suspends the debt limit until January 1, 2025, sets caps on FY 2024 and FY 2025 nondefense discretionary spending, and caps FY 2024 discretionary spending for defense programs at $886.3 billion—roughly a 3.3% increase from the FY 2023 level. To discourage a year-end omnibus appropriations bill, the legislation provides that discretionary spending would automatically be cut by 1% across-the-board if all 12 appropriations bills are not passed by January 1, 2024.
The bill also rescinds $28 billion of certain unobligated COVID-19 relief funds and redirects $21 billion of supplemental Internal Revenue Service funds for use in other nondefense programs. Other provisions include modifications to work requirements for certain recipients of benefits from the Supplemental Nutrition Assistance Program (SNAP); provisions to ease permitting restrictions that delay certain energy projects; and a requirement that student loan borrowers restart payments beginning on September 1, 2023.
H.R. 3746 passed the House of Representatives on May 31st by a bipartisan vote of 314-117. The bill was supported by 149 Republicans and 165 Democrats, while 71 Republicans and 46 Democrats voted against it. Following House passage, and heeding the warning from Treasury Secretary Janet Yellen on the timing to avoid default, Senate Majority Leader Chuck Schumer (D-NY) and Minority Leader Mitch McConnell (R-KY) crafted an agreement to allow some votes on amendments in exchange for a time agreement to fast-track the bill. Eleven amendments were offered, but all were defeated. H.R. 3746 passed the Senate on June 1st by a bipartisan vote of 63-36, clearing the bill for the President’s signature.
We also wanted to update you on exciting news regarding the Affordable Housing Credit Improvement Act (AHCIA) (H.R. 3238/S. 1557). Since its introduction on May 11th, the House bill now has 102 bipartisan cosponsors and the Senate bill has 16 bipartisan cosponsors. Many of the new cosponsors were added as a result of the May 18th Capitol Hill visits that many of you made in conjunction with the Affordable Housing Symposium, and your follow-up contacts afterward.
It makes a huge difference when Members of Congress hear about the benefits of the Low-Income Housing Tax Credit program in the communities they represent. We thank you for all your hard work to date and encourage you to continue to follow up with elected officials to show them what you are doing in their states and districts.
Be sure and request that they cosponsor the AHCIA if they haven’t already, and take the opportunity to invite them to visit a property. You might also want to share the ACTION Campaign letter signed by over 2,600 organizations, businesses and public entities urging Congress to strengthen the LIHTC by supporting the AHCIA. HAG is a member of the ACTION campaign steering committee and a signatory on the letter.