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President Donald Trump decided not to sign the bipartisan 21st Century ROAD to Housing Act, one of the most ambitious initiatives approved this year to make housing more affordable in the United States, reported AP and Telemundo Digital.
However, the good news is that by not exercising his veto power within the constitutional timeframe of 10 days, which expires this Friday at midnight - there are still several hours left and it is expected that he will not change his mind -, the legislation will automatically come into effect on Saturday, July 11.
Trump's decision did not respond to objections regarding the content of the regulation but rather to a political disagreement with Congress. The President had conditioned his support on legislators first approving the SAVE America Act, a proposal that requires documentary proof of citizenship to register to vote.
That initiative failed on Thursday in the Senate, garnering only 50 votes, far from the 60 needed to overcome the filibuster. Four Republican senators joined the Democrats to block it, nullifying the main demand put forth by the White House.
After that setback, Trump chose not to sign the housing law, although he also did not veto it, which allows it to come into effect automatically, as stipulated by the United States Constitution.
What does the new law entail?
The legislation was approved with an unusual level of support in Washington. The Senate endorsed it with 89 votes in favor and 10 against, while the House of Representatives passed it by a vote of 358 to 32, numbers that would have even allowed for the possibility of overriding a presidential veto.
Driven by Republican Senator Tim Scott and Democratic Senator Elizabeth Warren, the measure aims to facilitate the construction of new housing and alleviate the affordability crisis affecting millions of Americans who are looking to both rent and buy homes.
Among its main measures are:
Reduce federal regulations that delay real estate projects.
Streamline environmental reviews to accelerate construction.
Allocate 200 million dollars to housing innovation programs.
Limit the purchase of single-family homes by large institutional investors, prohibiting new acquisitions by companies that already own 350 or more properties.
Although experts warn that the law will not alone resolve issues such as the labor shortage in construction, rising insurance costs, or price increases, it does represent an attempt to increase the housing supply and alleviate some of the obstacles that inflate the market.
A political dispute
Trump had made his position clear weeks earlier when he canceled a scheduled ceremony at the Capitol to enact the law and announced that he would not move forward with it until Congress approved the SAVE America Act, which he described as a "national emergency."
On June 24, he posted on Truth Social: "The press conference and signing today regarding housing are canceled until we pass the much-needed SAVE AMERICA ACT, which I consider a national emergency."
The president referred to the housing legislation as of "minor importance" compared to his electoral reform proposal.
Paradoxically, Trump had previously defended measures to limit the influence of large investment funds in the real estate market.
He even signed an executive order on January 21 aimed at preventing large Wall Street firms from competing with individual buyers for single-family homes, a policy that is now incorporated into federal legislation.
Previously, he announced his intention to prohibit large institutional investors from purchasing homes, with the aim of reducing prices.
The ROAD to Housing Act legislatively codifies that policy.
Wide support
The law has wide support among both legislators and the real estate sector, as well as the general public.
A survey conducted among 800 registered voters showed an 89% approval rate, with majority support among Republicans, Democrats, and independents.
It has also received support from builders, owners of residential complexes, and market specialists.
The chief economist of Redfin, Daryl Fairweather, stated that increasing housing construction is one of the most necessary measures to ease the pressure on prices, although she cautioned that those hoping for immediate relief will likely have to continue waiting due to the ongoing inventory shortage affecting the U.S. real estate market.
"We need more housing to be built, and legislation that removes barriers to construction is exactly what the market requires at this moment," he stated.
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