senate

Netflix’s Ted Sarandos grilled in Senate hearing

Netflix Inc. Co-Chief Executive Ted Sarandos pledged to maintain a 45-day theatrical window for Warner Bros. films during a Senate subcommittee hearing Tuesday.

Sarandos also tried to dampen concerns about potential job losses and U.S. production declines related to the companies’ proposed multibillion-dollar deal.

During a two-hour hearing before the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights, Sarandos told lawmakers the proposed merger would not run afoul of antitrust concerns and would, instead, “strengthen the American entertainment industry.”

About 80% of HBO Max subscribers also have Netflix subscriptions, which he said showed the two services were “complementary.” Netflix also plans to increase its film and television production spending to $26 billion this year, with a majority of that happening in the U.S., he said.

“We are doubling down, even as much of the industry has pulled back,” Sarandos said, according to a written transcript of his opening remarks. “With this deal, we’re going to increase, not reduce, production investments going forward, supported by a stronger combined business and balance sheet.”

Sarandos was joined at the hearing by Warner Bros. Discovery Chief Revenue and Strategy Officer Bruce Campbell.

When asked by Sen. Adam Schiff (D-Calif.) whether senators should expect a “round of layoffs” or consumer price increases as a result of the deal, Campbell said no. He pointed to Netflix’s lack of comparable film and TV studios, or the distribution infrastructure that Warner Bros. has.

“We believe, based on our discussions with them in the negotiation process, that they’re not only going to keep those operations intact, in fact, they’re going to invest in those operations and invest in continued production, including on our lots in Burbank and elsewhere,” Campbell said.

Paramount Chief Executive David Ellison was also invited to appear as a witness, but declined because he did not believe it would be useful or helpful since the company’s bid for Warner had been rejected, Sen. Cory Booker (D-N.J.) said during the hearing. Ellison did, however, meet with him and other senators privately to answer questions, Booker said.

Sarandos also tried to assuage concerns about the deal’s potential effect on theatrical distribution.

“I know I’ve earned some skepticism over there over the years on this because I was talking a lot about Netflix’s business model, which was different from that,” he said. “We didn’t own a theatrical distributor before. We do now, and a great one.”

When asked if the 45-day window would be “self-enforced,” Sarandos agreed, saying that was an industry standard. He did, however, note the general caveat that “routinely, movies that underperform, the window moves a little bit” but is still referred to as a 45-day window.

And in a sign of the growing role politics has played in the perception of the deal, Sarandos tried to sidestep questions from Republican senators about perceived “woke” content on the streaming platform, as well as inquiries from Booker about President Trump’s involvement in the merger. Trump previously said he “would be involved” in his administration’s decision to approve any deal.

The hearing comes just two months after Netflix prevailed in a hotly contested bidding war for Warner Bros. The $72-billion deal would dramatically reshape the Hollywood landscape and give the streamer control over Warner Bros.’ storied Burbank film and TV studios, its lot, HBO and HBO Max.

Netflix also agreed to take on more than $10 billion in Warner Bros. debt, pushing the enterprise value of the transaction to $82.7 billion.

But Paramount has continued to pursue the company, fighting to acquire all of Warner Bros. Discovery, including its cable networks.

The company, led by Ellison, has made a direct appeal to Warner shareholders to tender their shares in support of a Paramount deal. A deadline for that offer was recently extended to Feb. 20.

Paramount has also filed proxy materials to ask Warner shareholders to reject the Netflix deal at an upcoming shareholders meeting.

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GOP leaders sound increasingly confident they can pass a spending package and end partial shutdown

Speaker Mike Johnson’s ability to carry out President Trump’s “play call” for funding the government will be put to the test on Tuesday as the House votes on a bill to end the partial shutdown.

Johnson will need near-unanimous support from his Republican conference to proceed to a final vote, but he and other GOP leaders sounded confident during a Tuesday morning press conference that they will succeed. Johnson can afford to lose only one Republican on party line votes with perfect attendance, but some lawmakers had threatened to tank the effort if their priorities are not included. Trump weighed in with a social media post, telling them, “There can be NO CHANGES at this time.”

“We will work together in good faith to address the issues that have been raised, but we cannot have another long, pointless, and destructive Shutdown that will hurt our Country so badly — One that will not benefit Republicans or Democrats. I hope everyone will vote, YES!,” Trump wrote on his social media site.

The measure would end the partial government shutdown that began Saturday, funding most of the federal government through Sept. 30 and the Department of Homeland Security for two weeks as lawmakers negotiate potential changes for the agency that enforces the nation’s immigration laws — U.S. Immigration and Customs Enforcement, or ICE.

“The Republicans are going to do the responsible thing,” Johnson said.

Running Trump’s ‘play call’

The House had previously approved a final package of spending bills for this fiscal year ending Sept. 30, but the Senate broke up that package so that more negotiations could take place for the Homeland Security funding bill. Democrats are demanding changes in response to events in Minneapolis, where two American citizens were shot and killed by federal agents.

Johnson said on Fox News Channel’s “Fox News Sunday” it was Trump’s “play call to do it this way. He had already conceded he wants to turn down the volume, so to speak.” But GOP leaders sounded as if they still had work to do in convincing the rank-and-file to join them as House lawmakers returned to the Capitol on Monday after a week back in their congressional districts.

“We always work till the midnight hour to get the votes,” said House Majority Leader Steve Scalise, R-La. “You never start the process with everybody on board. You work through it, and you could say that about every major bill we’ve passed.”

The funding package passed the Senate on Friday. Trump says he’ll sign it immediately if it passes the House. Some Democrats are expected to vote for the final bill but not for the initial procedural measure setting the terms for the House debate, making it the tougher test for Johnson and the White House.

Democratic leader Hakeem Jeffries has made clear that Democrats wouldn’t help Republicans out of their procedural jam, even though Senate Democratic leader Chuck Schumer helped negotiate the funding bill.

Jeffries, of New York, noted that the procedural vote covers a variety of issues that most Democrats oppose, including resolutions to hold former President Bill Clinton and former Secretary of State Hillary Clinton in contempt of Congress over the Jeffrey Epstein investigation.

“If they have some massive mandate,” Jeffries said of Republicans, “then go pass your rule, which includes toxic bills that we don’t support.”

Key differences from the last shutdown

The path to the current partial shutdown differs from the fall impasse, which affected more agencies and lasted a record 43 days.

Then, the debate was over extending temporary coronavirus pandemic-era subsidies for those who get health coverage through the Affordable Care Act. Democrats were unsuccessful in getting those subsidies included as part of a package to end the shutdown.

Congress has made important progress since then, passing six of the 12 annual appropriations bills that fund federal agencies and programs. That includes important programs such as nutrition assistance and fully operating national parks and historic sites. They are funded through Sept. 30.

But the remaining unpassed bills represent roughly three-quarters of federal spending, including the Defense Department. Service members and federal workers could miss paychecks depending upon the length of the current funding lapse.

Voting bill becomes last-minute obstacle

Some House Republicans have demanded that the funding package include legislation requiring voters to show proof of citizenship before they are eligible to participate in elections. Rep. Anna Paulina Luna, R-Fla., had said the legislation, known as the SAVE Act, must be included in the appropriations package.

But Luna appeared to drop her objections late Monday, writing on social media that she had spoken with Trump about a “pathway forward” for the voting bill in the Senate that would keep the government open. Luna and Rep. Tim Burchett, R-Tenn., met with Trump at the White House.

The Brennan Center for Justice, a think tank focused on democracy and voting rights issues, said the voting bill’s passage would mean that Americans would need to produce a passport or birth certificate to register to vote and that at least 21 million voters lack ready access to those papers.

“If House Republicans add the SAVE Act to the bipartisan appropriations package it will lead to another prolonged Trump government shutdown,” said Schumer, of New York. “Let’s be clear, the SAVE Act is not about securing our elections. It is about suppressing voters.”

Johnson, of Louisiana, has operated with a thin majority throughout his tenure as speaker. But with Saturday’s special election in Texas, the Republican majority stands at a threadbare 218-214, shrinking the GOP’s ability to withstand defections.

Freking writes for the Associated Press. AP video journalist Nathan Ellgren and writer Lisa Mascaro contributed to this report.

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In stunning upset, Democrat wins Texas state Senate seat

Democrat Taylor Rehmet flipped a reliably Republican state Senate district in Texas in Saturday’s special election, continuing a string of surprise victories for Democrats across the U.S. in the year since President Trump returned to the White House.

Republican Lt. Gov. Dan Patrick called it “a wake-up call for Republicans across Texas,” where the GOP controls every statewide office.

“Our voters cannot take anything for granted,” Patrick wrote on X, while noting low-turnout special elections are always unpredictable. “I know the energy and strength the Republican grassroots in Texas possess. We will come out fighting with a new resolve, and we will take this seat back in November.”

Rehmet, a labor union leader and veteran, easily defeated Republican Leigh Wambsganss, a conservative activist, in the Fort Worth-area district, which Trump had won by 17 points in 2024. With almost all votes counted, Rehmet was leading by more than 14 percentage points — a more than 30-point swing.

“This win goes to everyday working people,” Rehmet told supporters.

Rehmet’s victory added to Democrats’ record of overperforming in special elections so far this cycle, beginning in March — when they prevailed in a Pennsylvania legislative district made up of suburbanites and farmers that Democrats hadn’t held in a century — and continuing through November, when they dominated candidate and ballot contests from Maine to California. Zohran Mamdani, a Democratic socialist, was elected mayor of New York City, a Democratic stronghold that saw the highest voter turnout in a mayor’s race in 50 years.

The showings come as Trump’s approval ratings hover around or below 40%. A January AP-NORC poll found that a majority of U.S. adults disapprove of the way he’s handling foreign policy, trade negotiations and immigration, as well as the economy.

Democrats said Saturday’s results in Texas were further evidence that voters under the second Trump administration are motivated to reject GOP candidates and their policies.

Texas Democratic Party Chair Kendall Scudder said Rehmet won by standing with working people and talking to Texans about the future.

“This win shows what is possible in Texas with strong organizing, great candidates and strategic investments,” he said in a statement. “People are noticing that Democrats have the workers’ backs and are delivering results.”

Democrats’ other recent state victories included wins for governor in Virginia and New Jersey and in special elections in Kentucky and Iowa. And, while Republican Matt Van Epps won a Tennessee special election for a U.S. House seat, the relatively slim margin of victory gave Democrats hope in the district for this fall’s midterms.

With that backdrop in mind, Trump and Vice President JD Vance have pushed states to redraw their political maps to Republicans’ advantage headed into those contests, which will determine partisan control in Washington. Some Democratic states — most notably California — have countered with their own redistricting efforts.

The Texas Senate seat was open because the four-term GOP incumbent, Kelly Hancock, resigned to take a statewide office. Hancock easily won election each time he ran for the office, and Republicans have held the seat for decades.

The district is redder than its home county, Tarrant. Trump won the county by 5 points in 2024, but Democrat Joe Biden carried it in 2020 by about 1,800 votes out of more than 834,000 cast.

Trump posted about the race on his social media platform earlier Saturday, urging voters to get out to support Wambsganss. He called her a successful entrepreneur and “an incredible supporter” of his “Make America Great Again” movement.

Rehmet had support from national organizations including VoteVets, a veterans group that said it spent $500,000 on ads. Rehmet, who served in the Air Force and works as a machinist, campaigned on lowering costs, supporting public education and protecting jobs.

Wambsganss warned her party not to be complacent.

“The Democrats were energized,” she said in a statement. “Too many Republicans stayed home.”

Rehmet’s victory allows him to serve until early January, and he will face Wambganss again in the November general election to try to keep the seat for a full four-year term. The Texas Legislature is not set to reconvene until 2027, and the GOP still will have a comfortable majority.

Hanna and Smyth write for the Associated Press.

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Senate passes budget bills ahead of midnight deadline

Jan. 30 (UPI) — The federal government mostly will go unfunded at least through Monday after the Senate on Friday approved a bill package to fully fund all but the Department of Homeland Security.

Five budget bills would fund the majority of the federal government through the 2026 fiscal year, which ends on Sept. 30, but Homeland Security only is funded through Feb. 13 in a sixth bill.

The two-week extension enables lawmakers to debate proposed changes regarding Immigration and Customs Enforcement and Customs and Border Protection enforcement activities.

The six measures must be approved by the House of Representatives, which will take them up on Monday and send them to President Donald Trump for signing if House members concur with the changes made in the Senate.

The Senate voted 71-29 to approve House Resolution 7148 early Friday evening.

While the measure awaits approval in the House and eventual signing by the president, the federal government mostly will shut down at 12:01 a.m. EST on Saturday, but lawmakers expect that lull to be short and over by Tuesday.

House Speaker Mike Johnson, R-La., on Friday told media that he expects to fast-track the voting by suspending the House floor rules and immediately approve the budget measures, which only require a simple majority in the House versus at least 60 votes in the Senate.

The vote to suspend the rules, though, requires a two-thirds vote of House members.

The Homeland Security budget still would need to be debated and could lapse if it is not approved and signed into law by the end of the day on Feb. 13.

Sen. Rick Scott, R-Fla., told media he does not expect Homeland Security to be funded by Feb. 13.

“I believe this is a horrible bill,” he said on Friday. “I can’t believe we’re not funding ICE.”

He said he doesn’t believe it will be funded in two weeks, either.

Congressional Democrats are demanding an end to sweeps through targeted cities, want ICE and CBP officers unmasked and wearing body cameras, and want judicial warrants instead of administrative warrants issued to target and arrest individuals.

Sen. Lindsey Graham, R-S.C., was unhappy that the Senate removed a provision approved by the House that would have enabled him and others to sue the Department of Justice for seizing his phone records during the Biden administration’s Operation Arctic Frost.

Graham was among eight Republican senators whose phone records were accessed by the DOJ, which he called illegal.

“Every Senator should make sure this never happens again,” he told media on Thursday.

Congressional Democrats generally were happy that the Homeland Security funding was separated from a six-bill package to fund the entire government.

They also successfully rejected an effort to reduce the maximum Pell Grant amount by $1,000 and blocked the president’s proposal to lower rental assistance funding and reduce the National Institutes of Health budget.

Democrats were especially pleased that measures approved by the Senate give the Low Income Home Energy Assistance program $20 million more in funding, while the Child Care and Development Block Grant and Head Start each get another $85 million.

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Senate Democrats and White House strike deal to avert shutdown, continue ICE debate

Senate Democrats reached a deal with the White House late Thursday to prevent a partial government shutdown by moving to temporarily fund the Department of Homeland Security for two weeks, providing more time to negotiate new restrictions for federal immigration agents carrying out President Trump’s deportation campaign.

The deal follows widespread outrage over the fatal shootings of two U.S. citizens — Renee Nicole Good and Alex Pretti — by federal agents in Minneapolis amid an aggressive immigration crackdown led by the Trump administration.

Under the agreement, funding for the Department of Homeland Security will be extended for two weeks, while the Pentagon, the State Department, as well as the health, education, labor and transportation departments, will be funded through Sept. 30, Senate Minority Leader Chuck Schumer’s office confirmed to The Times.

While the Senate could approve the deal as early as Thursday night, it is unclear when the House will vote for the package. To avert a government shutdown, both chambers need to approve the deal by midnight EST Friday.

After the agreement was reached, President Trump wrote on Truth Social that he was “working hard with Congress to ensure that we are able to fully fund the Government without delay.”

“Republicans and Democrats in Congress have come together to get the vast majority of the Government funded until September, while at the same time providing an extension to the Department of Homeland Security (including the very important Coast Guard, which we are expanding and rebuilding like never before),” Trump said.

He added: “Hopefully, both Republicans and Democrats will give a very much needed Bipartisan ‘YES’ Vote.”

The move to temporarily fund DHS is meant to give lawmakers more time to negotiate Democratic demands that include a requirement that federal immigration agents use body cameras, stop using masks during operations and a push to tighten rules around arrests and searches without judicial warrants.

The breakthrough comes after Senate Democrats — and seven Senate Republicans — blocked passage of a spending package that included additional funding for DHS through Sept. 30 but not enough guardrails to muster the 60 votes needed to pass the chamber.

“Republicans in Congress cannot allow this violent status quo to continue,” Senate Minority Leader Chuck Schumer (D-N.Y.) said after the vote. “We’re ready to fund 96% of the federal government today, but the DHS bill still needs a lot of work.”

Speaking on the Senate floor, Sen. John Barrasso (R-Wyo.) condemned Democrats for jeopardizing funding for other agencies as they pushed for their demands.

“It would be disastrous to shut down FEMA in the middle of a major winter storm. It’s affecting half the country, and it appears that another storm is along the way,” he said. “A shutdown would mean no paychecks for our troops once again, no money for TSA agents or air traffic controllers.”

The standoff comes after federal ICE agents shot and killed Pretti, an American citizen and nurse who attempted to help a fallen woman during an ICE operation in Minneapolis. Pretti’s death was the second fatal shooting of a U.S. citizen by federal agents in the city in less than two weeks, following the killing of Good earlier this month.

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Democrats Crockett, Talarico align on much in Texas Senate debate. Trump impeachment is different

Democrats Jasmine Crockett and James Talarico differed more on style than substance in their first debate for U.S. Senate in heavily Republican Texas, though they distinguished themselves somewhat on the future of ICE and impeachment of President Trump.

Crockett, an outspoken second-term U.S. House member, and Talarico, a more soft-spoken four-term state representative, generally echoed each other on economic issues, healthcare and taxes.

Both called for a “fighter” in the role. Crockett, who is Black, said she was better positioned to attract disaffected Black voters, while Talarico, a Presbyterian seminarian who often discusses his Christian faith, suggested he could net rural voters unhappy with Republicans.

The hourlong discussion, before hundreds of labor union members and their families at the Texas AFL-CIO political convention, served as an early preview for themes Democrats hoping to overtake the Republican majority in the Senate in November are likely to stress throughout the midterm campaign.

The nominee chosen in the March 3 primary will face the winner of a Republican contest between four-term Sen. John Cornyn, Rep. Wesley Hunt and state Atty. Gen. Ken Paxton.

Impeachment of Trump

Crockett said she would support impeachment proceedings against Trump, beginning with investigating his use of tariffs. Crockett has supported impeachment measures in the House.

“I think that there is more than enough to impeach Donald Trump,” Crockett said. “Ultimately, do I think we should go through the formal process? Absolutely.”

Talarico stopped short of suggesting whether he would support impeachment proceedings, except to say, “I think the administration has certainly committed impeachable offenses.”

Instead, Talarico said he would, as a senator, weigh any evidence presented during an impeachment trial fairly, given that the Senate does not bring impeachment charges but votes to convict or acquit. “I’m not going to articulate articles of impeachment here at a political debate,” he said.

Both candidates address ICE funding

Both candidates condemned the shooting of a man in Minneapolis by federal immigration officers Saturday, and ICE’s heavy presence in the city, though Talarico was more adamant about cutting funding to the agency.

Both said they support bringing impeachment proceedings against Department of Homeland Security Secretary Kristi Noem, under whom ICE serves. But Crockett was less specific about cutting their funding.

“We absolutely have to clean house,” she said. “Whatever that looks like, I’m willing to do it.”

Talarcio more specifically said of ICE funding, “We should take that money back and put it in our communities where it belongs.”

Differences of style

While both candidates said the position requires “a fighter,” Crockett cast herself as a high-profile adversarial figure while Talarico said he had been confronting Republicans in the Texas Statehouse.

“I am here to fight the system, the system that is holding so many of us down,” said Crockett, a 44-year-old Dallas civil rights lawyer and former public defender who has built her national profile with a candid style marked by viral moments.

“It is about tapping into the rawness of this moment,” Crockett said of what Democratic primary voters are seeking.

Talarico, a former public school teacher, cast himself as someone who had been actively opposing the Republican-controlled state legislature.

He pointed to his opposition to Texas’ Republican Gov. Greg Abbott’s agenda in Austin, notably on tax credits for Texans who choose private schools for their children.

“We need a proven fighter for our schools, for our values, for our constituents in the halls of power,” he said. “I think we need a teacher in the United States Senate.”

Taxes, healthcare and economy

Crockett and Talarico generally aligned on domestic policy, including support for higher taxes.

Both candidates proposed ending tariffs as a way of lowering consumer prices.

“We have to roll back these tariffs,” Crockett said. “It’s hurting farmers and ranchers who are filing a record number of bankruptcies.”

Talarico was more direct about his support for higher taxes on the nation’s wealthiest earners.

“What I will not compromise on is making sure these billionaires pay for all that they have gotten from this country,” Talarico said, though he stopped short of suggesting how much he would seek to raise taxes.

Crockett voted last summer against the tax-cut and spending-reduction bill passed by the Republican-controlled Congress and signed by Trump. The bill extended tax cuts enacted during Trump’s first administration.

She also said she supported Medicare for all, a government-backed health insurance plan for all Americans.

“If we truly believe that everyone should have access to healthcare, we can make that a reality with bold leadership,” she said.

Talarico supports the concept, and spoke favorably about universal basic income, without suggesting he would specifically support it in the Senate.

“I’m very encouraged by some pilot programs of universal basic income,” he said.

Beaumont writes for the Associated Press.

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Housing costs are crippling many Americans. Here’s how the two parties propose to fix that

Donald Trump’s promises on affordability in 2024 helped propel him to a second term in the White House.

Since then, Trump says, the problem has been solved: He now calls affordability a hoax perpetrated by Democrats. Yet the high cost of living, especially housing, continues to weigh heavily on voters, and has dragged down the president’s approval ratings.

In a poll conducted this month by the New York Times and Siena University, 58% of respondents said they disapprove of the way the president is handling the economy.

How the economy fares in the coming months will play an outsize role in determining whether the Democrats can build on their electoral success in 2025 and seize control of one or both chambers of Congress.

With housing costs so central to voters’ perceptions about the economy, both parties have put forward proposals in recent weeks targeting affordability. Here is a closer look at their competing plans for expanding housing and reining in costs:

How bad is the affordability crisis?

Nationwide, wages have barely crept up over the last decade — rising by 21.24% between 2014 and 2024, according to the Federal Reserve. Over the same period, rent and home sale prices more than doubled, and healthcare and grocery costs rose 71.5% and 37.35%, respectively, according to the Fed.

National home price-to-income ratios are at an all-time high, and coastal states like California and Hawaii are the most extreme examples.

Housing costs in California are about twice the national average, according to the state Legislative Analyst‘s Office, which said prices have increased at “historically rapid rates” in recent years. The median California home sold for $877,285 in 2024, according to the California Assn. of Realtors, compared with about $420,000 nationwide, per Federal Reserve economic data.

California needs to add 180,000 housing units annually to keep up with demand, according to the state Department of Housing. So far, California has fallen short of those goals and has just begun to see success in reducing its homeless population, which sat at 116,000 unsheltered people in 2025.

What do the polls say?

More than two-thirds of Americans surveyed in a Gallup poll last month said they felt the economy was getting worse, and 36% expressed approval for the president — the lowest total since his second term began.

The poll found that 47% of U.S. adults now describe current economic conditions as “poor,” up from 40% just a month prior and the highest since Trump took office. Just 21% said economic conditions were either “excellent” or “good,” while 31% described them as “only fair.”

An Associated Press poll found that only 16% of Republicans think Trump has helped “a lot” in fixing cost of living problems.

What have the Democrats proposed?

The party is pushing measures to expand the supply of housing, and cut down on what they call “restrictive” single-family zoning in favor of denser development.

Senate Minority Leader Chuck Schumer (D-N.Y.) said Democrats plan to “supercharge” construction through bills like California Sen. Adam Schiff’s Housing BOOM Act, which he introduced in December.

Schiff said the bill would lower prices by stimulating the development of “millions of affordable homes.” The proposal would expand low-income housing tax credits, set aside funds for rental assistance and homelessness, and provide $10 billion in housing subsidies for “middle-income” workers such as teachers, police officers and firefighters.

The measure has not been heard in committee, and faces long odds in the Republican-controlled body, though Schiff said inaction on the proposal could be used against opponents.

And the Republicans?

A group of 190 House Republicans this month unveiled a successor proposal to the “Big Beautiful Bill,” the sprawling tax and spending plan approved and signed into law by Trump in July.

The Republican Study Committee described the proposal as an affordability package aimed at lowering down payments, enacting mortgage reforms and creating more tax breaks.

Leaders of the group said it would reduce the budget deficit by $1 trillion and could pass with a simple majority.

“This blueprint … locks in President Trump’s deregulatory agenda through the only process Democrats can’t block: reconciliation,” said Rep. August Pfluger (R-Tex.), who chairs the group. “We have 11 months of guaranteed majorities. We’re not wasting a single day.”

Though the proposal has not yet been introduced as legislation, Republicans said it would include a mechanism to revoke funding from blue states over rent control and immigration policy, which they calculated would save $48 billion.

President Trump has endorsed a $200-billion mortgage bond stimulus, which he said would drive down mortgage rates and monthly payments. And the White House, which oversees Fannie Mae and Freddie Mac — the two enterprises that back most U.S. mortgages — continues to push the idea of portable and assumable mortgages.

Trump said the move would allow buyers to keep their existing mortgage rate or enable new homeowners to assume a previous owner’s mortgage.

The Department of Justice, meanwhile, has launched a criminal investigation into Federal Reserve Chair Jerome Powell over the Fed’s renovation costs, as Trump bashed him over “his never ending quest to keep interest rates high.”

The president also vowed to revoke federal funding to states over a wealth of issues such as childcare and immigration policy.

“This is not about any particular policy that they think is harmful,” Rep. Laura Friedman (D-Burbank) said. “This is about Trump’s always trying to find a way to punish blue states.”

Is there any alignment?

The two parties are cooperating on companion measures in the House and Senate.

The bipartisan ROAD to Housing Act seeks to expand housing supply by easing regulatory barriers. It passed the Senate unanimously and has support from the White House, but House Republicans have balked, and it has yet to receive a floor vote.

A bipartisan proposal — the Housing in the 21st Century Act — was approved by the House Financial Services Committee by a 50-1 vote in December. It also has yet to receive a floor vote.

The bill is similar to its twin in the Senate, with Rep. French Hill (R-Ark.) working across the aisle with Rep. Maxine Waters (D-Los Angeles). If approved, it would cut permitting times, support manufactured-housing development and expand financing tools for low-income housing developers.

There was also a recent moment of unusual alignment between the president and California Gov. Gavin Newsom, who both promised to crack down on corporate home buying.

What do the experts say?

Housing experts recoiled at GOP proposals to bar housing dollars from sanctuary jurisdictions and cities that impose rent control.

“Any conditioning on HUD funding that sets up rules that explicitly carve out blue cities is going to be really catastrophic for California’s larger urban areas,” said David Garcia, deputy director of policy at UC Berkeley’s Terner Center for Housing Innovation.

More than 35 cities in California have rent control policies, according to the California Apartment Assn. The state passed its own rent stabilization law in 2019, and lawmakers approved a California sanctuary law in 2017 that prohibits state resources from aiding federal immigration enforcement.

The agenda comes on the heels of a series of HUD spending cuts, including a 30% cap on permanent housing investments and the end of a federal emergency housing voucher program that local homelessness officials estimate would put 14,500 people on the streets.

In Los Angeles County, HUD dollars make up about 28% of homelessness funding.

“It would undermine a lot of the bipartisan efforts that are happening in the House and the Senate to move evidence-backed policy to increase housing supply and stabilize rents and home prices,” Garcia said.

The president’s mortgage directives also prompted skepticism from some experts.

“Fannie Mae and Freddie Mac were pressed to get into the riskier parts of the mortgage market back in the housing bubble and that was a part of the problem,” said Eric McGhee, a researcher at the Public Policy Institute of California.

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