President Donald Trump’s refusal to sign a bipartisan housing bill could consume valuable congressional time and further narrow the path for the Clarity Act to become law this year.
Trump canceled a planned signing ceremony on Wednesday and said he would not approve the housing legislation until Congress passes the SAVE America Act, an elections bill requiring proof of citizenship and identification for federal voting.
The housing package passed the Senate by an 85 to 5 vote and the House by 358 to 32, reflecting unusually broad support across both parties.
It includes measures intended to accelerate housing construction, streamline environmental reviews and limit purchases of single family homes by large institutional investors.
The legislation also contains a four year prohibition on the Federal Reserve issuing a central bank digital currency, extending the ban through the end of 2030.
Trump described the housing measure as being of minor importance compared with the elections bill and other priorities.
The SAVE America Act has passed the House but lacks enough support to overcome the Senate’s 60 vote threshold. Senate Majority Leader John Thune has repeatedly said there is no clear path to passing it under current rules.
House Speaker Mike Johnson said Republicans could attempt to include the elections measure in another budget reconciliation package.
Trump has ten days, excluding Sundays, to sign or veto the housing bill after it reaches his desk.
If Congress remains available to receive a veto and Trump takes no action during that period, the bill can become law without his signature. An adjournment that prevents its return could instead allow the president to block it through a pocket veto.
The dispute risks complicating Congress’s schedule as lawmakers approach their summer break and attempt to complete several major pieces of legislation.
That could create another problem for the Digital Asset Market Clarity Act, which would establish a regulatory framework dividing oversight of crypto markets between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The Clarity Act cleared the Senate Banking Committee in May with a bipartisan 15 to 9 vote.
It still needs to be combined with related legislation from the Senate Agriculture Committee, approved by the full Senate and sent back to the House before reaching Trump.
The Senate has only about five working weeks remaining before the August recess, leaving little room for extended disputes or unrelated legislation to occupy floor time.
White House digital asset adviser Patrick Witt previously targeted July 4 for congressional passage but acknowledged that the schedule had little flexibility.
The housing standoff does not directly block the Clarity Act. However, any delay that keeps senators focused on the elections dispute or forces leadership to rearrange the calendar could reduce the chances of a floor vote before lawmakers leave Washington.
Failure to pass the Clarity Act before the recess could push the effort closer to the November midterm elections, when legislative activity is expected to slow and the bill’s political outlook could become more uncertain.
