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House Republicans shoot down possible housing-crypto trade with Senate

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House Republicans are rejecting the prospect of accepting a Senate housing package in exchange for the upper chamber including a slate of community bank deregulatory bills in pending cryptocurrency legislation, dashing hopes that the trade could resolve a housing bill standoff between the two bodies.

“So our good stuff for their bad stuff — not sure I buy that,” said Rep. Bill Huizenga (R-Mich.), who serves as vice chair of the House Financial Services Committee.

Senate Banking Republicans discussed the possible trade at a closed-door meeting last week. Sen. Katie Britt, an Alabama Republican who chairs a Senate Banking subcommittee on housing, helped pitch the idea to other GOP senators. But House lawmakers say adding their bipartisan banking bills to the crypto market structure measure is not enough to get them to swallow a Senate-approved housing affordability package that they hope to amend.

“There’s other things in the housing bill that we need to look at,” said Rep. Mike Flood (R-Neb.), who chairs a House Financial Services subcommittee on housing.

A spokesperson for Senate Banking Chair Tim Scott did not immediately respond to a request for comment. Scott and Senate Banking ranking member Elizabeth Warren (D-Mass.) are pushing the House to accept their bill as-is.

The House included the community bank deregulatory measures in a housing bill it passed in February, but the provisions were left out of the housing measure that the Senate passed this month. The banking bills, which supporters say will increase access to mortgages, are a priority for House Republicans, but they say they have an array of outstanding issues with the Senate’s housing bill that need to be addressed.

“This needs to be part of a conversation,” said Rep. Zach Nunn (R-Iowa), who sits on House Financial Services. “Simply throwing something over from the Senate and expecting everybody to get on board with a half-baked idea doesn’t get us to where we need to be.”

Rep. Andy Barr, a senior Kentucky Republican on House Financial Services who is running for Senate, indicated he likes the idea of tucking bank deregulatory measures into the crypto legislation. But, he said, “we want some of our housing ideas included, too.”

“I don’t know why they wouldn’t entertain some of our bipartisan housing ideas,” he said.

Katherine Hapgood contributed to this report.

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Congress

Special election shocker has Florida Republicans nervous about redistricting

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Florida has been viewed for months as the potential capstone of a GOP redistricting campaign, but now Sunshine State Republicans are growing wary after the dramatic flip of two legislative seats in the state — including one where President Donald Trump votes.

Republicans already hold a commanding 20-8 edge over Democrats in the Florida House delegation, and some in the GOP — including Gov. Ron DeSantis — believe they could pick up as many as five more seats with a rare mid-decade redraw of district lines.

Some Florida incumbents are now warning in stark terms it could backfire.

“I think the Legislature needs to be very cognizant of the fact that if they get too aggressive … you could put incumbent members at risk,” GOP Rep. Greg Steube said. Some seats that Republicans previously won by eight or nine points, he said, could instead have only a four- or five-point GOP advantage — putting them in reach for Democrats in a wave election.

DeSantis, citing a state Supreme Court decision from last year and a potential ruling from the U.S. Supreme Court, has already called a special session of the state Legislature in April to push ahead with new lines. So far there have been no official maps produced or any signs that lawmakers have started working on them.

Republican anxiety has only grown further after Democrats notched surprising wins in special elections Tuesday, including a Palm Beach County district that contains the Mar-a-Largo resort where Trump lives and votes.

While many in the GOP have brushed off the Democratic gains there and in other states as anomalies, private qualms are growing among the incumbents whose seats could be put at greater risk due to redistricting.

“We keep saying these are kind of one-off things that haven’t gone our way,” said one Florida House Republican granted anonymity to speak candidly. “But I’m not seeing any of the one-offs that are going our way.”

“To talk as aggressively as some of what we’ve heard, there’s no way to get there without significantly weakening some districts,” the member added.

House Democrats are hoping to capitalize on the opportunity. Minority Leader Hakeem Jeffries quickly sent a warning Tuesday night that redistricting could backfire.

“We will crush House Republicans in November if DeSantis tries to gerrymander the Florida congressional map,” Jeffries said in a post on X.

Others are openly objecting to redistricting on more high-minded grounds. Rep. Daniel Webster, a veteran Republican from central Florida, called it a “slippery slope.”

“I’ve been around enough reapportionments to know it can come back and bite you,” he said.

“I don’t like this redistricting stuff,” Jacksonville-area Rep. John Rutherford said, noting south Florida would likely bear the brunt of any changes. “But if they think they can get another two seats or something, have at it.”

Any significant redraw in Florida would likely focus on changing districts that were drawn based on racial considerations, the subject of the court rulings DeSantis has cited. While much of the focus has been on seats held by Democrats, Republicans concede it could lead to changes to the Miami-area district represented by GOP Rep. Mario Diaz-Balart.

Some incumbents are also worried that redistricting — still weeks away — is hindering their reelection campaigns as the midterms approach.

“Why would you knock on doors if you don’t know if those doors are gonna be in your district or not?” Steube said.

The hand-wringing over Florida comes as the fallout from Trump’s monthslong redistricting push continues to ripple through the House. Republicans kicked things off with a surprise effort to draw new maps in Texas, but Democrats countered with an effort to draw California’s lines in their favor.

After months of wrangling in about a dozen states, the whole effort looks to end up close to a wash — after some Republicans tried to warn party leaders the heavy-handed effort could backfire.

A group of House Republicans from Florida privately discussed their concerns about the fallout of yet another redistricting push in their state, several Republicans confirmed — especially amid rising anxiety that Hispanic voters could be turning away from the GOP.

House GOP leaders mostly brushed off the Florida special elections in public comments Wednesday, arguing that low-turnout, off-cycle races shouldn’t be considered midterm bellwethers. But some suggested there are lessons to be learned from Tuesday’s results.

“Surely you look at those and see, are there things we can learn and improve upon when the big election comes?” House Majority Leader Steve Scalise told reporters Wednesday. “And obviously, November is the election that we are focused on.”

The top leaders of the House GOP’s campaign arm, Reps. Richard Hudson of North Carolina and Brian Jack of Georgia, both deferred to the state Legislature on redistricting in Florida Wednesday.

Hudson, the NRCC chair, said Florida’s growing population means redistricting “makes sense to do,” but he said he was more concerned about turnout and other factors.

Jack, the group’s deputy chair for recruiting, similarly talked up the candidates Republicans would be fielding in Florida and elsewhere. As for redistricting, he said, “I defer to the Legislature.”

“It’s up to them,” he said, “not up to us.”

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Arrington: Fraud cuts for war funding

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House Budget Committee Chair Jodey Arrington is making clear he will push for the “fraud prevention” spending cuts he wants across state and social safety net programs in order to pay for any Iran war funding in a second GOP reconciliation bill.

The Texas Republican is meeting soon this afternoon with Senate Budget Committee Chair Lindsey Graham (R-S.C.) in Graham’s office to discuss plans.

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Gallego: Merrick Garland was a ‘coward’ over Jan. 6

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Sen. Ruben Gallego on Wednesday called former Attorney General Merrick Garland a “coward” over his handling of prosecuting Jan. 6 insurrectionists.

Speaking at an event with Economic Liberties, the Arizona Democrat said it “took way too damn long” to hold anyone accountable for the 2021 attack on the Capitol.

“We didn’t move fast enough in holding Jan. 6 Republicans, the president, everyone up and down the organizations that were helping out, accountable,” Gallego said, adding that he “100 percent” blames Garland for not being more aggressive.

Despite more than 1,500 people being charged with crimes for their participation in the deadly attack on the Capitol, some Democrats were displeased with Garland’s prosecution tactics.

Though Trump was eventually indicted on federal charges, some Democrats accused Garland of waiting too long to launch an investigation into Trump. Garland announced the appointment of special counsel Jack Smith in 2022, citing Trump’s reelection bid as part of his decision to begin the investigation.

“I think he was a coward, and if I could ever take down his photo from the U.S. Attorney’s office, I would gladly do it,” Gallego said of Garland. “He was willing to sacrifice our democracy for the institution of the DOJ. There is no DOJ without democracy.”

The remarks from Gallego echo his previous criticism of Garland for his handling of Jan. 6 prosecutions, including when he was still in office.

“I’m just not seeing the urgency from the attorney general,” Gallego told CNN in 2022. “He’s thinking more about protecting the institution of the Department of Justice. And I appreciate that, but he has to be thinking about protecting the institution of democracy.”

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