Year: 2023

WASHINGTON—In the midst of historically high housing costs, U.S. Senators Chris Murphy (D-Conn.) and Richard Blumenthal (D-Conn.) and U.S. Representative Joe Courtney (D-Conn.) joined U.S. Representative Jamaal Bowman Ed.D (D-N.Y.) and Senator Elizabeth Warren (D-Mass.) in sending a bicameral letter urging President Biden to pursue all possible strategies to address rent inflation, end corporate price gouging in the real estate sector, and ensure that renters and people experiencing homelessness across this country are stably housed this winter.

“In the absence of robust investments in fair and affordable housing, it is clear that additional timely executive action is needed to address the urgent issue of historically high rental costs and housing instability. With this in mind, we urge your Administration to pursue all possible strategies to end corporate price gouging in the real estate sector and ensure that renters and people experiencing homelessness across this country are stably housed this winter,” the lawmakers wrote.

The lawmakers continued: “Simply put, the rent is too high and millions of people across this country are struggling to stay stably housed as a result. Housing is the largest monthly expense for most Americans, and skyrocketing rental costs increase the likelihood of evictions, foreclosures, homelessness, and health issues for people across the country. Rent is a major driver of inflation. According to the Consumer Price Index, the cost of shelter rose 0.8% in October alone, which is the highest rate in 40 years. Furthermore, as was highlighted in a recent House Financial Services Committee hearing, over the last few years, median asking rents have increased by 31% and house prices have increased 48%.”

In addition to Congress pursuing legislation to address unaffordable housing costs, the lawmakers laid out seven steps the Biden administration should take “to supplement pre-existing efforts with actions that support tenants and address the issue of rent inflation and corporate price gouging in the rental market today,” including:

·         Directing the Federal Housing Finance Agency (FHFA) to establish renter protections for individuals residing in properties financed with government-backed mortgage properties;

·         Directing the Federal Trade Commission to enforce action against unfair rent gouging practices;

·         Directing the U.S. Department of Housing and Urban Development (HUD) to issue guidance mitigating cost burden and adopting anti-rent gouging measures;

·         Encouraging the Consumer Financial Protection Bureau, the U.S. Department of Justice, and HUD to investigate corporate landlords discriminating against tenants unlawfully;

·         Encouraging states to use State and Local Fiscal Recovery Funds from the American Rescue Plan to protect renters from the threat of rent inflation and corporate greed in the rental market;

·         Activating the Federal Emergency Management Agency (FEMA) to move people experiencing homelessness into permanent, affordable homes;

·         Establishing a Federal Interagency Council on Tenants’ Rights to identify interagency actions that can be taken to support renters and coordinate the implementation of those policies.

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WASHINGTON–U.S. Senator Chris Murphy (D-Conn.), U.S. Senator Todd Young (R-Ind.), U.S. Senator Tim Kaine (D-Va.), and U.S. Senator Kevin Cramer (R-N.D.) on Thursday released the following statements on the Federal Trade Commission’s (FTC) proposed rule banning employers from imposing non-compete agreements on their employees. The FTC estimates that the new proposed rule could increase wages by nearly $300 billion per year and expand career opportunities for about 30 million Americans.

“The FTC’s proposed rule banning the use of non-competes is great news for workers and for maintaining our economy’s competitive edge. In recent years, we’ve seen an explosion of non-compete agreements across industries and income brackets that have depressed wages and stifled innovation. Senator Young and I applaud the FTC for taking this step, and I look forward to continuing our work in Congress to support American workers and entrepreneurs,” said Murphy.

“Non-compete agreements restrict our workforce and stifle economic growth. This is why I have long fought to rein in their use, and I am pleased that the FTC is taking steps to address their overuse. In the final rule, I am hopeful that the FTC can strike the right balance to support workers while ensuring that our American employers can continue to thrive,” said Young.

“Non-compete clauses suppress wages, hinder job mobility, and make it harder for growing businesses to hire talent. Curtailing their use is a commonsense step that’s good for workers and the economy,” said Kaine.

“Restrictive non-compete agreements suppress economic growth, discourage innovation, and are barriers to market entry for entrepreneurs. Non-competes are neither pro-business nor pro-worker, and Americans deserve flexibility to freely pursue their careers. This is why North Dakota largely prohibited non-competes years ago. The FTC’s proposed rule follows our state’s leadership,” said Cramer.

Last Congress, Murphy and Young introduced the Workforce Mobility Act, bipartisan legislation to limit the use of non-compete agreements that negatively impact American workers. U.S. Senator Kevin Cramer (R-N.D.) and U.S. Senator Tim Kaine (D-Va.) as original co-sponsors of the bill. In December 2021, Murphy and Young led a letter to the FTC and Department of Justice (DOJ) Antitrust Division to restrict the use of non-compete clauses in employment contracts to promote worker mobility.

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