After spending several months passing different versions of a bipartisan housing affordability bill (H.R. 6644), the Senate and House on Monday and Tuesday (June 22-23), respectively, passed final text of the bill, the 21st Century ROAD to Housing Act. The House vote was once again overwhelming, 358-32. Rather than spending billions on housing construction, the bill's mostly supply-side approach relies on expanding programs and streamlining regulations; easing regulatory barriers such as environmental reviews; expanding access to mortgage financing; and encouraging local housing production. Observers have described it as the most significant housing bill passed by Congress in 30 years, and it is a notable bipartisan achievement of this Congress. President Trump is set to sign the bill at a ceremony in the Capitol today.

Financial Services Committee Chairman French Hill (R-AR) was already anticipating rulemaking around the bill when he opened debate on the House floor Tuesday, saying he and Ranking Member Maxine Waters (D-CA) both "believe there are several points the Treasury should consider as it examines the congressional intent" in implementing the bill's language restricting ownership by large investors in the market for homes, Politico reported. Hill said nonprofits and community land trusts should not be included in the definition of a "large institutional investor," and that the bill's limits should not be interpreted to require any entity to divest from any homes before or after the law's implementation.

In another area where there is hope for bipartisanship, Senate Agriculture Committee Chairman John Boozman (R-AR) released a five-year farm bill on Tuesday (June 23), without controversial Republican priorities from the House version but also without a delay in "One Big Beautiful Bill Act" (OBBBA/OB3) changes to the Supplemental Nutrition Assistance Program (SNAP) that Democrats requested. The OB3 tightened eligibility based on work requirements and immigration status and shifted a greater share of costs to states starting in October 2027. Democratic Committee members said: "This bill does not address the devastating cuts to SNAP or the shift to state taxpayers passed into law as part of HR 1. We appreciate that bipartisan provisions have been included in the discussion draft and stand ready to work with Republicans to negotiate a bipartisan Farm Bill that both meets the moment and can be successful on the Senate Floor."

Social Security — Ahead of today's (Wednesday, June 24) Senate Finance Social Security, Pensions, and Family Policy Subcommittee hearing on "The Future of Social Security," full Committee member Elizabeth Warren (D-MA) and Senator Bernie Moreno (R-OH) published a guest essay in the New York Times, "Our Plan to Save Social Security," proposing to lift the Social Security payroll tax cap of $184,500, which could raise $3 trillion over 10 years. "Lifting the cap so that all income is treated the same would generate substantial revenue that would extend the solvency of Social Security for another generation," they said.

The program's trustees now estimate 100% of scheduled benefits can be paid only until Q4 of 2032, earlier than last year's projection. Increasing the payroll tax cap has been proposed by several other Democrats, including: former President Biden when he was a candidate, to create a "doughnut hole" and newly subject wages over $400,000 to payroll taxes; Subcommittee Ranking Member Bernie Sanders (I-VT) Social Security Expansion Act (S. 770), which would subject all income above $250,000 to the Social Security payroll tax; House Ways and Means Social Security Subcommittee Ranking Member John Larson's (D-CT) Social Security 2100 Act to subject income over $400,000 to Social Security payroll taxes; and the recent Strengthening Social Security Act (H.R. 9296), by Ways and Means member Linda Sánchez (D-CA), to phase out the $184,500 cap.

Tax — President Trump on June 23 sent to the Senate the nomination of James Gadwood, a tax controversy lawyer, to be Chief Counsel for the Internal Revenue Service. Treasury Assistant Secretary for Tax Policy Ken Kies had been Acting IRS Chief Counsel until last week, which was the maximum duration allowed under the Vacancies Reform Act following the withdrawal of the nomination of Donald Korb last year.

Punchbowl News reported, "Even if Gadwood isn't confirmed, his nomination does allow acting Chief Counsel Ken Kies to keep serving in the role." Of course, the proposed anti-weaponization fund, which the Administration has said it has backed away from, and the IRS immunity deal for the President's family and businesses reached by the Justice Department are creating friction between the parties and could be raised by Democrats during a confirmation process.

As Tax Notes reported, "The most recently confirmed IRS chief counsel was Marjorie Rollinson, who was confirmed in … 2024 after a three-year period of interim leaders of the office and who retired at the beginning of Trump's second administration. Since Rollinson's departure, the role cycled through a few acting appointments … "

Cryptocurrency — In remarks to the Economic Club of New York June 23, Treasury Secretary Scott Bessent said the US should champion a financial system that rewards innovation and protects intellectual property, citing as an example the "new frontiers" in financial technologies. "Digital assets, stablecoins, tokenization, and new payment systems will help to shape the future of money," he said. "The United States should not consign itself to the sidelines while that future is built elsewhere." This point is often made about crypto legislation. Sec. Bessent spoke about cryptocurrency in relation to US competitiveness at the Senate Finance Committee earlier in June. Senator Steve Daines (R-MT) was cited by the Daily Tax Report June 23 as saying senators have "a framework put together" that he hopes could be marked up this year.

The Ways and Means Committee on June 9 held a hearing on cryptocurrency tax issues such as deferral of mining and staking rewards, i.e. whether rewards are taxed upon receipt under the argument that miners and stakers are getting paid for updating a ledger, or whether new digital assets are akin to self-created property like growing crops and should be taxed upon disposition. Rep. Mike Thompson (D-CA) said there may be an impasse between those who view rewards as income for a service and those who view them as self-created property. The Tax Clarity for Mining and Staking Act (H.R. 9175) by Rep. Mike Carey (R-OH) allows unlimited deferral, while Rep. Steven Horsford (D-NV) proposed to limit deferral to five years.

A June 23 Tax Notes story, "Sticking Points Emerge for House Crypto Tax Legislation," focused partly on this issue: "Some tax professionals view the inclusion of some kind of tax deferral in both versions of the legislation as a signal that it's close to certain. 'In itself, that's massive because it's reversing existing guidance,' Thomas M. Shea of EY said." The story noted, "the details of the staking and mining rewards provision could present a big hurdle to finding consensus."

Reconciliation — There is still attention on prospects for a third Republican-only budget reconciliation bill, which the President wants anchored by defense funding and House Republicans envision may address affordability and integrity provisions for federal social safety net programs. In a June 23 Fox Business News interview, House Ways and Means Committee Chairman Jason Smith (R-MO) said, "I definitely support a third reconciliation bill. I've supported all the reconciliation bills. But I stand by the fact that we only have 30 legislative days between now and the election, 30 … So, it's going to make it more difficult." He also cited other business before Congress, including funding the government by the September 30 deadline.

House Republican leaders are convening another high-level reconciliation meeting today (June 24), which could provide outlines of a timetable for an effort that must get underway soon if a bill is to be completed before the August recess. Politico Inside Congress reported today, "Budget Chair Jodey Arrington insisted Republicans could pull together a bare bones budget resolution in the next two weeks, adding that today's meeting will help determine how to pay for some of an Iran war funding portion by targeting alleged fraud in other government spending programs in a way that's digestible by the GOP conference."

And President Trump is scheduled to meet with Senate Republicans for lunch at the Capitol today (June 24) amid skepticism from leaders over prospects for a reconciliation bill and last week's controversy over timing of the confirmation for the nation's next top intelligence official, which was entwined with the issue of expired Foreign Intelligence Surveillance Act (FISA) surveillance authority.

Elections — On another matter, the midterm elections, Chairman Smith projected confidence, at least for his chamber. "We're going to win the House. I feel better about the House of Representatives staying in majority than the United States Senate," he said. "When you look at the gamut of toss-up seats, it's really relatively 16 to 18 different toss-up seats, and I would take our candidates any day … "

Schedule — On Thursday, June 25 (10 a.m.), the Senate Finance Committee is holding a hearing on United States International Trade Commission (USITC) nominations.

Also on Thursday, June 25 (10 a.m.), the House Ways and Means Work & Welfare Subcommittee is holding a hearing on "The Maternal, Infant, and Early Childhood Home Visiting (MIECHV) Program: Early Support, Lifelong Impact."