President Trump's refusal to sign a bipartisan housing bill could significantly impact congressional timelines and jeopardize the chances of the Clarity Act becoming law within the year. Trump cancelled a planned signing ceremony and indicated he would withhold approval of the housing legislation until Congress passes the SAVE America Act, a contentious voting bill which mandates proof of citizenship and identification for federal voting.
The housing package received overwhelming support in Congress, passing the Senate with an 85 to 5 vote and the House with a 358 to 32 vote. This indicated an unexpected level of bipartisan consensus aimed at addressing pressing housing issues. Key features of the package are designed to facilitate faster housing construction, simplify environmental review processes, and limit single-family home purchases by large investors. It also extends the prohibition on the Federal Reserve from issuing a central bank digital currency until the end of 2030.
Despite its significance, Trump characterized the housing measure as of minor importance compared to the elections bill. The SAVE America Act has already cleared the House but faces a hurdle in the Senate, where it lacks the required support to surpass the 60-vote threshold. Senate Majority Leader John Thune's remarks reflect a prevailing sentiment that a clear route for its passage is currently absent. Meanwhile, House Speaker Mike Johnson suggested that Republicans may contemplate incorporating the elections measure into future budget reconciliation discussions.
After the housing bill arrives at the President's desk, he has a ten-day window, excluding Sundays, to either sign or veto it. Should he refrain from taking any action during this period, the bill may still become law without his endorsement. Conversely, if Congress is adjourned, Trump could employ a pocket veto to prevent its enactment.
The standoff threatens to complicate congressional schedules, especially as lawmakers approach their summer recess while striving to finalize multiple key legislative items. This scenario could further endanger the Digital Asset Market Clarity Act, which seeks to define a regulatory framework for the cryptocurrency markets, distributing oversight between the SEC and the CFTC. The Clarity Act enjoyed bipartisan support, clearing the Senate Banking Committee with a 15 to 9 vote, but it must still be merged with related legislation from the Senate Agriculture Committee before being sent back to the House.
With the Senate facing a tight window of only about five weeks before their August recess, the time for lengthy disputes or distractions is limited. Although the housing bill does not outright block the Clarity Act, any delays that compel senators to focus on the elections issue or reorganize schedules could diminish the likelihood of a timely vote before the recess. If the Clarity Act does not pass before the break, it may be further delayed until after the November midterm elections, when legislative efforts tend to slow and its political viability could become precarious.