Treasury Secretary Scott Bessent privately raised concerns about parts of a bipartisan Senate housing bill before publicly endorsing it, highlighting divisions among Republicans as Congress moves forward on a major housing affordability push, Semafor reported Thursday.
In a closed-door meeting Wednesday with members of the Republican Study Committee, Bessent urged House Republicans to "take the lead" on housing legislation and warned they should not allow Democrats, including Sen. Elizabeth Warren, to dominate the issue, according to people familiar with the discussion.
He also expressed reservations in other conversations about a Senate provision targeting institutional investors that would require companies that develop rental homes to sell those properties to individuals within seven years.
Despite those concerns, Bessent quickly aligned himself with the White House position.
After reports of his comments surfaced, Bessent called on the Senate to pass the bipartisan bill and urged the House to send it to President Donald Trump's desk.
The administration has embraced the Senate proposal as part of a broader effort to address rising housing costs, with Bessent emphasizing that curbing large institutional investors' role in the housing market should remain part of any final package.
The legislation, which advanced in the Senate this week with strong bipartisan support, aims to increase homeownership opportunities and reduce the influence of large investment firms in the single-family housing market.
One controversial provision targets the growing "build-to-rent" sector, where institutional investors finance and construct homes specifically intended as rental properties.
Industry groups argue that the requirement could backfire.
Sharon Wilson Geno, president of the National Multifamily Housing Council, warned that forcing developers to sell those homes within seven years would undermine the financing model used to build them and could reduce overall housing supply.
Republicans in Congress remain split on how aggressively to regulate institutional investors. Senate Banking Committee Chair Tim Scott rejected claims the bill reflects Democratic priorities, insisting it does not represent a concession to Warren.
Meanwhile, House Financial Services Chair French Hill said lawmakers want to review the Senate language before proceeding with their own legislation.
The debate reflects a broader political fight over the causes of the housing affordability crisis. Democrats and some Republicans have increasingly blamed large investment firms for buying up single-family homes and driving up prices, while many housing economists argue the central problem remains a shortage of new housing supply.
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