Congress
Capitol agenda: Schumer stops a shutdown
Chuck Schumer has given Senate Democrats an out — drastically lowering the chances of a government shutdown Saturday.
The Senate minority leader, both privately to his caucus Thursday and in a floor speech shortly after, said he would vote to advance a GOP-written stopgap to fund the government through September. He said Republicans’ spending bill is “very bad.” But he argued the “potential for a shutdown has consequences for America that are much, much worse” and would empower President Donald Trump and Elon Musk to further gut federal agencies.
It’s a remarkable shift. Just 24 hours before, Schumer had said Senate Republicans didn’t have enough Democratic support to clear the 60-vote threshold to advance House Republicans’ continuing resolution, or CR.
Senate Majority Leader John Thune has now teed up that procedural vote for 1:15 p.m. — and indicated he’d be willing to give Democrats a poised-to-fail vote on a four-week stopgap as part of a deal to speed up passage for Republicans’ CR. All 100 senators would have to green-light that, and as of Thursday evening, Schumer said there was no time agreement.
Republicans need eight Democrats to join them to advance the CR. There are at least two on board: Schumer and Sen. John Fetterman, who has for days been saying he wouldn’t vote for a shutdown.
But even as Schumer gave Democrats cover, a handful announced or reiterated their “no” votes after his speech. Several have yet to publicly weigh in.
The backlash to Schumer’s call was swift. House Minority Leader Hakeem Jeffries didn’t criticize Schumer directly in private comments to his caucus but said House Democrats “stood on the side of the American people.” And Rep. Jim McGovern said he was “extremely disappointed.”
“It gives them the ability, Elon Musk the ability, to go through and continue to do the shit he’s doing,” McGovern added.
What else we’re watching:
- Trump backs John Thune’s tax plan: Trump indicated to GOP senators during a private meeting Thursday that he supports the Senate majority leader’s plan to use a controversial accounting method that would make trillions of dollars in tax cuts appear to cost nothing — a move that would make it easier to advance the president’s other tax priorities. But House hard-liners remain skeptical of the idea, even as Speaker Mike Johnson has increasingly indicated he’s open to it.
- Crypto bill advances: Senate Banking on Thursday approved digital assets legislation that would create a regulatory structure for stablecoins, marking the first time a Senate panel has ever advanced major crypto legislation. It was one of Congress’ most significant steps yet toward giving the crypto sector a long-sought stamp of legitimacy that could turbocharge its growth. Five Democrats voted for the GOP-led legislation, despite strong opposition from the top Democrat on the Banking panel, Sen. Elizabeth Warren.
- Ted Cruz pushes NIL regulations: The Senate Commerce chair plans to hold hearings and markups on regulating college athletes’ ability to profit off their personal brand — what’s commonly referred to as name, image and likeness issues — and said he’s building bipartisan support on it. Lawmakers are showing increased interest in the topic: House Judiciary is planning a roundtable on it next month.
Meredith Lee Hill, Benjamin Guggenheim, Jordain Carney, Jasper Goodman and Ben Leonard contributed to this report.
Congress
Capitol agenda: Dems plot redistricting revenge
Democrats are ready to play hardball after a stunning series of redistricting losses that could kneecap the party’s power in Congress for years to come.
“We’re going to win in November, and then we’re going to crush their souls as it relates to the extremism that they are trying to unleash on the American people,” House Minority Leader Hakeem Jeffries said Wednesday.
Jeffries will hold a caucus-wide meeting Thursday morning with House Administration’s top Democrat Joe Morelle to discuss next steps on the party’s election security strategy.
The mid-decade map redrawing war marks a reversal from years of high-minded Democratic rhetoric that included advocating for independent redistricting commissions, campaign finance curbs and more. Democratic leaders are now openly discussing overriding those safeguards as Republicans use the courts and their control of state governments to consolidate and enhance their own party’s power.
Democrats’ call to action comes after the Supreme Court’s April decision to slash the Voting Rights Act, kicking off a GOP mad dash to crack majority Black, safe Democratic seats in the South. The Virginia Supreme Court’s rejection of a map last week that would’ve given Dems four new seats this year dealt another blow.
Jeffries and fellow Democratic leaders laid out an ambitious plan this week to redistrict before the 2028 elections in states like New York, New Jersey, Colorado, Oregon and Washington where their party currently holds power but cannot immediately redraw House lines.
But opportunities to redistrict in 2026 are running dry for the party, except for a potential last-ditch pick-up in Maryland, where Democrats want to eliminate Rep. Andy Harris’ district even with the state’s primary two weeks away and mail-in ballots already issued.
Prominent Democrats are heavily pressuring state Senate President Bill Ferguson to move for a map redraw now after preventing the party from trying to draw an 8-0 map months ago, Gregory Svirnovskiy reports. Ferguson’s spokesperson Wednesday said the leader told Maryland’s governor he’s “open to a conversation about next steps.”
“At this point, the Republicans are literally doing everything in their power to create all Republican congressional delegations in the South and to squeeze out every possible seat,” Rep. Jamie Raskin told Blue Light News in an interview. “So if [Ferguson’s] initial position was that he didn’t want to be part of continuing a downward spiral, that consideration should be gone.”
The party’s anger also translates to a growing appetite to remake the Supreme Court, which many House Democrats say is ushering in an era of “Jim Crow 2.0.”
Rep. Johnny Olszewski, who has introduced legislation to term-limit the justices, said in an interview that the VRA ruling was “a straw that broke the camel’s back.” And Rep. Sean Casten said there are tools to “kneecap” the Supreme Court that Congress has never used, such as stripping their power to review lower court rulings.
“I think everybody from the top of our caucus to the bottom are saying we have got to push back on them,” Casten said.
— SURVEY SAYS: Separately, new results from a Blue Light News Poll show many Democratic voters want their party leaders to fight back hard — even if it means breaking up districts designed to protect the power of Black voters and other minority communities. Read the results here.
What else we’re watching:
— SENATE GOP COOL ON SUMMER RECONCILIATION 3.0 PLAN: Senate Republicans aren’t sold yet on their House counterparts’ plan to finish a third party-line spending package before summer recess. “We’re still working on reconciliation 2.0,” Senate Majority Leader John Thune said Wednesday when asked if his chamber was also planning a pre-recess timeline for a third bill.
— HOUSING BILL COMES TO HOUSE FLOOR: House GOP leadership is planning to put an amended housing bill up for a fast-track floor vote next week, despite President Donald Trump’s calls for the chamber to pass the Senate’s version as-is. Senior House lawmakers late Wednesday reached a bipartisan deal and released bill text. The final House text would maintain restrictions on Wall Street’s purchase of single-family homes — a priority for Trump — but would significantly scale back the Senate bill’s limitations on so-called institutional investors in the housing market.
Riley Rogerson, Andrew Howard, Erin Doherty, Jordain Carney, Kelsey Brugger, Katherine Hapgood and Meredith Lee Hill contributed to this report.
Congress
House Democrats prep for years of redistricting hardball after court losses
House Democrats say they tried playing nice. Now the gloves are off.
After spending more than a decade pushing for anti-gerrymandering measures and other good-government initiatives, Democratic lawmakers said this week they are gearing up to play political hardball in the wake of stunning court losses on redistricting — potentially for years to come.
“We will beat the far-right extremists,” House Minority Leader Hakeem Jeffries said Wednesday. “We’re going to win in November, and then we’re going to crush their souls as it relates to the extremism that they are trying to unleash on the American people.”
It’s a marked reversal from years of high-minded Democratic rhetoric that included advocating for independent redistricting commissions, campaign finance curbs and more — even as Republicans used the courts and their control of state governments to consolidate and enhance their own party’s power.
The U-turn was already underway, but it was cemented in recent weeks after the U.S. Supreme Court reinterpreted the Voting Rights Act of 1965 to allow states to eliminate majority-minority districts. Then the Virginia Supreme Court moved last week to invalidate a recent voter referendum paving the way for a Democrat-friendly map.
Several Democratic states, including New York, have been hindered by their adoption of independent redistricting commissions and other processes meant to take partisan considerations out of the drawing of congressional lines. Now Democratic leaders are openly discussing overriding those safeguards.
“All options should be on the table,” Rep. Ted Lieu (R-Calif.) told reporters Wednesday. “And other states that have redistricting commissions should be prepared to have conversations with their legislature and their voters in response to what we’re seeing in the South. And I think all of that is completely fair.”
The party’s anger also translates to a growing appetite to remake the Supreme Court, which many House Democrats say is ushering in an era of “Jim Crow 2.0.”
Rep. Johnny Olszewski (D-Md.), who has introduced legislation to term-limit the justices, said in an interview that the ruling was “a straw that broke the camel’s back.” And Rep. Sean Casten (D-Ill.) said there are tools to “kneecap” the Supreme Court that Congress has never used, such as stripping their power to review lower court rulings.
“I think everybody from the top of our caucus to the bottom are saying we have got to push back on them,” Casten said.
What was especially gutting to Democrats about the two court decisions was that they believed they had battled Republicans to a draw after President Donald Trump kicked off the unusual mid-decade line drawing spree by pressuring Texas legislators to eliminate as many as five Democratic House seats there.
The Virginia referendum last month was seen as a capstone, with voters essentially endorsing a map that would add four Democratic seats. Jeffries won plaudits for spending heavily to get that result and took a public victory lap only to see it all reversed.
Despite the setback, Jeffries has mostly gotten a pass from fellow House Democrats, who say that the GOP efforts in other states had to be countered despite the risks.
“My feeling is, given what was happening around the country, there was no choice but to launch the effort in Virginia,” said Rep. Lloyd Doggett (D-Texas), who is retiring after seeing his district radically redrawn.
Jeffries and fellow Democratic leaders laid out an ambitious plan this week to redistrict before the 2028 elections in states like New York, New Jersey, Colorado, Oregon and Washington where their party currently holds power but cannot immediately redraw House lines.
“This is not a war we started,” Rep. Ilhan Omar (D-Minn.) said. “But as Democrats it’s important that we also get aggressive in that fight.”
The focus on 2028 comes as opportunities to redistrict in 2026 run dry — except for a potential last-ditch pick-up in Maryland, where Democrats want the legislature to eliminate Republican Rep. Andy Harris’ district, even with the state’s primary two weeks away and mail-in ballots already issued.
In light of the court rulings, Rep. Glenn Ivey (D-Md.) said, there’s “enormous pressure to do something, and I think we should.”
Other House Democrats are calling for new investments in state-level races to support legislators who will commit to redistricting efforts ahead of 2028 and the post-2030 Census redraw.
“Democrats are going to be moving to do what Republicans did 15 years ago and that is to focus on state legislatures,” Rep. Kwesi Mfume (D-Md.) said in an interview. The “smartest thing to do,” he added, “would be to control the process.”
The appetite for even more aggressive redistricting could even mean a new push to redraw maps again in California, where voters last year approved a Democratic-drawn map that handed the party five new favorable districts. The hope is that Democrats can squeeze more blue seats out of the state ahead of 2028.
“We were meeting fire with fire. Texas did five seats, California did five seats,” Rep. Yvette Clarke (D-N.Y.), the Congressional Black Caucus chair, said in an interview. “Now … we’ve got to look at all options. We’re not taking anything off the table.”
Congress
House releases amended housing bill text, schedules vote for next week
Senior House lawmakers late Wednesday reached a bipartisan deal on housing affordability legislation and scheduled a floor vote for next week.
The final House text would maintain restrictions on Wall Street’s purchase of single-family homes — a priority for President Donald Trump — but would significantly scale back the Senate bill’s limitations on so-called institutional investors in the housing market.
If the House passes its legislation, the bill would have to go back to the Senate for final approval before it reaches Trump’s desk — even as the White House has pushed the lower chamber to pass the Senate’s 21st Century ROAD to Housing Act as-is.
House leadership is aiming to pass the bill under suspension of rules, a fast-track procedure that limits debate, prohibits further amendments on the floor and requires a two-thirds majority. House Financial Services Chair French Hill said earlier on Wednesday that bill text would be posted once an agreement was reached and fully expected the support of ranking member Maxine Waters.
The bill text contains changes to language aimed at limiting the ability of large institutional investors to purchase housing by narrowing the definition of “single-family home,” which could make it possible for private equity firms and other large companies to purchase more homes than the previous version allowed, which is in line with draft text previously reported by POLITICO on Saturday.
The definition of a single-family home would now exclude manufactured housing and homes that have been renovated for sale, among others, according to the text.
The House bill would also strip a controversial Senate provision that would require single-family homes built by large institutional investors as long-term rentals to be sold after seven years to individual homebuyers. The housing industry and affordable housing advocates have opposed the language, arguing that it could disincentivize investment in a large segment of housing stock. There is no requirement for private equity firms to sell single-family homes they currently own or obtain in the future, whether newly built long-term single-family rental homes or otherwise, according to the bill text.
Notably, the House’s amended version of the bill will preserve a five-year ban on the Federal Reserve issuing a digital dollar, which GOP hardliners strongly opposed, arguing that a temporary ban is worse than no ban at all. Members of the House Freedom Caucus previously said they would not vote for the Senate’s housing bill due to the sunsetting ban on a central bank digital currency.
The legislation also contains 12 community banking provisions, which has been a priority of Hill this Congress. The deregulation provisions were excluded from the Senate’s bill and aim to be less burdensome for community banks.
Portions of the Senate’s 21st ROAD to Housing Act that were fully removed include language that would eliminate the cap on the number of properties eligible for HUD’s Rental Assistance Demonstration program; a permanent authorization of the Community Development Block Grant-Disaster Recovery program; and the requirement that Federal Housing Administration mortgage disclosures include cost comparison information for veteran homebuyers so they are aware of their Veteran Affairs benefits.
Additionally the House preserved the Build Now Act, which would increase funding through HUD’s CDBG program for communities that build more housing than previously and decrease funding if the housing growth rate is below its previous median rate for that locality. This has been a legislative priority for Sen. John Kennedy (R-La.) and was included in Senate crypto bill text released Monday.
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