Watt Vote Fails, Reconsideration Timeline Uncertain

Senate Republicans have blocked the vote on President Barack Obama’s nomination of Representative Mel Watt (D-NC) to direct the Federal Housing Finance Agency. On October 31, the Senate voted 56 to 42 to oppose cloture, or limit debate. Only if debate was limited could a vote on Mr. Watt’s nomination then occur. Going into the vote, Mr. Watt had widespread support from the housing and lending industries, affordable housing organizations, and civil rights and consumer advocates. Numerous national organizations, including NLIHC, joined in a campaign to urge enough Senators to vote for cloture, so that Mr. Watt could get an up or down vote. However, when the vote was taken, just two Republicans joined all the Democrats and the two Independents to support cloture. Senator Richard Burr (R-NC), who has actively supported his fellow North Carolinian, was joined by Senator Rob Portman (R-OH). Minority Leader Mitch McConnell (R-KY) led the floor charge against cloture, with most Republicans falling in lock-step. “Only once before, in 1843, has the Senate refused to approve the nomination of a sitting member of Congress for a cabinet level position. The rejection of Mr. Watt’s nomination by the U.S. Senate in 2013 is extraordinary,” said NLIHC President and CEO Sheila Crowley in a statement after the vote on Mr. Watt’s confirmation. On the same day, the Senate also declined to vote for cloture to allow Patricia Millett to be considered for a seat on the U.S. Appeals Court for the Washington, DC Circuit. The vote on Ms. Millet was equally partisan.In both cases, Senate Majority Leader Harry Reid (D-NV) changed his vote from support to opposition of cloture at the last moment, a procedural move that allows him to easily bring Mr. Watt’s nomination back to the floor for reconsideration. “I will exercise my right as Majority Leader to reconsider these nominations at some point in the very near future. I hope my Republican colleagues will reconsider their continued run of unprecedented obstructionism. Something has to change, and I hope we can make the changes necessary through cooperation,” said Senator Reid in a statement after the vote. Senate Committee on Banking, Housing and Urban Affairs Chair Tim Johnson (D-SD) reiterated the Senate majority leader’s sentiment. “This is not the end for Congressman Watt’s nomination, and I will continue to fight to see that he is confirmed,” Chair Johnson said after the cloture vote failed.“I am obviously very disappointed about the outcome of the Senate vote on cloture,” said Mr. Watt in media reports. “Despite this setback, I remain thankful for President Obama’s nomination and humbled by his confidence in me. I do not plan to withdraw as the nominee for the position and remain hopeful that we will prevail when the motion for reconsideration is taken up in the Senate.”The strategy for reconsidering Mr. Watt’s nomination to lead FHFA has not yet emerged. Other nominees for circuit court judgeships will likely be brought to the Senate for consideration by mid-November. The Senate will also be taking up the nomination of Janet Yellen to head the Federal Reserve Board. If these nominees also face partisan obstructionism, Senate leadership could bring all the nominees back for another round of votes. Whether Majority Leader Reid would use his power to rule that a simple majority of the Senate, rather than 60 votes, is necessary to invoke cloture, or rely on Republicans voting in favor of Mr. Watt’s nomination, is unclear at this time. Some Senators are calling again for reform of the filibuster rule altogether, citing its increasing use to block action in the Senate.The next FHFA director will determine the future of the government sponsored enterprises Fannie Mae and Freddie Mac (at least until housing finance reform legislation is passed) and whether they provide funding to the National Housing Trust Fund as required by law (see Memo, 7/12). “It is crucial that the FHFA be run by a permanent director who is nominated by the President of the United States and confirmed by a majority in the Senate. The housing stability of millions of American families depends on it,” said Crowley. Read Majority Leader Reid’s statement: http://1.usa.gov/1h8d69w Read Chair Johnson’s statement: http://1.usa.gov/1hC5vO5 Read Sheila Crowley’s statement: http://nlihc.org/press/releases/2939