Conservatives already have a government funding goal

Presented by American Chemistry Council – Chemistry Creates America Competes: An evening recap of the action on Capitol Hill and preview of the day ahead
May 07, 2024 View in browser
 
POLITICO Inside Congress

By Caitlin Emma and Jennifer Scholtes

Presented by 

American Chemistry Council – Chemistry Creates America Competes

With assists from POLITICO’s Congress team

Reps. Chip Roy and Thomas Massie confer.

Reps. Chip Roy (R-Texas) and Thomas Massie (R-Ky.) are spurning lame-duck funding action. | Francis Chung/POLITICO

HOUSE GOP HARDLINERS LEARN TO LOVE THE SPENDING STOPGAP 

Conservatives are typically loath to sign off on any government spending patch aimed at averting a shutdown, slamming those stopgaps as further evidence of a broken Washington stuck on a woeful fiscal trajectory.

But this year is different.

After gleefully rejecting four continuing resolutions in recent months as funding talks wobbled, members on Speaker Mike Johnson’s right flank now say Congress needs one that lasts into next year after federal cash dries up at the end of September.

Their hope is that the November election finally grants GOP hardliners the necessary leverage (read: extra votes) to enact steep spending cuts and conservative policies across a slate of fiscal 2025 spending bills.

“The CR should be into next year, not into the lame duck,” said Rep. Jim Jordan (R-Ohio). “Because you want to give the new president a chance to weigh in on what we spend and where we spend it.”

“We know there’s going to be a CR. I think that CR will go into [2025],” said Rep. Chip Roy (R-Texas). “I think you shouldn’t drop it into a lame duck, because frankly nothing good happens for America in a lame duck.”

Congress is used to election-year funding patches, in fact. Spending negotiations for the fiscal year that begins on Oct. 1 almost certainly won’t begin in earnest until after Election Day. If control of Congress and the White House remains the same, a lame-duck funding deal is very possible … maybe even likely.

But any big power shifts in Republicans’ favor this fall could send the GOP pushing for as much as it can get after the start of the next Congress in January 2025, when Donald Trump could retake the White House.

House Appropriations Chair Tom Cole doesn’t recommend that tack.

“That’s a mistake,” the Oklahoma Republican told us, noting that he argued against that strategy in 2016, when congressional leaders punting funding work into Trump’s presidency.

“Whoever loses in the Senate will still have the filibuster. And so the idea that you're gonna get a dramatically better deal is not true,” Cole said. “And if we win the presidency — and I think we will — I don't think President Trump should have to worry about the last Congress.”  

Funding the government during the lame-duck session — which occurs between the election and the end of the year, before power could potentially change hands — is “the swamp move,” said Rep. Thomas Massie (R-Ky.).

He added that the “Massie cuts” he got included in last year’s debt-limit deal are still in play next April if Congress ends up trying for a long punt.

But it's in Democrats’ interest to fund the government during that window, when they know for certain that they still control the White House and the Senate.

“I’m not for dragging it out,” Rep. Steny Hoyer (D-Md.), a senior party appropriator, told us. “You start a new Congress without having funded the government. That is … not regular order — and Chip Roy talks about regular order all the time.”

Rep. Mark Pocan (D-Wis.), another appropriator, verbally shrugged at hardliners’ desire to pass a stopgap into next year.

“Eh, they say lots of stuff,” he quipped. “It’s fantasy Congress with these guys.”

Why a stopgap is inevitable: Congress is currently constrained to strict funding levels for the coming fiscal year that were set by last summer’s bipartisan debt deal. Senate appropriators and leaders are sparring over whether that’s enough money for the military, and whether domestic programs should receive an equal increase in cash if lawmakers blow past the defense funding cap.

House Republicans, meanwhile, are once again advocating for abiding by the budget caps — but relitigating “side deals” struck under the debt limit agreement hatched by President Joe Biden and then-Speaker Kevin McCarthy.

“Look, we know what the [debt deal] topline is. So I think we live by that,” Cole told us. “There's disagreement about what the side deals were. And all that becomes, seems to me, a negotiating arena for leadership. Do I think the election impacts that? Yeah, I do.”

Cole hopes to divvy up funding totals for a dozen appropriations bills by the end of next week.

“We’re going to try and give our cardinals round numbers to work with,” he said, noting that those totals will “adjust over time.” That includes later this month, when the Congressional Budget Office reports on cash flowing into federal coffers, like fees from mortgage refinancing.

Regarding holiday plans: Until after Election Day, most of the arguing over funding levels will be in vain, said Pocan.

“Whatever we do is going to be kabuki theater, because obviously we're not going to have a budget done,” the Wisconsin Democrat said, before offering a bummer of a winter forecast. Given the likelihood of late-calendar haggling, he added, “my guess is I'm not going to travel anywhere over the holidays.”

— Caitlin Emma and Jennifer Scholtes 

GOOD EVENING! Welcome to Inside Congress, the play-by-play guide to all things Capitol Hill, on Tuesday, May 7, where this kind of swamp humidity has no business being so gross before summer has even officially begun.

 

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FAA REAUTHORIZATION STUCK IN SENATE LIMBO 

The Senate is still laboring to finish its FAA reauthorization bill amid a slew of amendment requests from both sides of the aisle.
Now, lawmakers are at risk of blowing past their Friday deadline if they don’t land an agreement soon — or if they fail to pass a short-term extension.

Commerce, Science and Transportation Chair Maria Cantwell (D-Wash.) said “really good progress" happened this past weekend on amendments but that conversations are still ongoing. Majority Leader Chuck Schumer on Tuesday also said amendment negotiations are trending in the right direction and urged senators to “prioritize reaching an outcome so we prevent slipping past the deadline.”

We’re told a lot of that progress they referred to is on a manager’s amendment, encompassing a lot of noncontroversial aviation tweaks to the bill. The unrelated stuff is looking tougher, though.

Minority Whip John Thune (R-S.D.) told reporters there are “up to a dozen holds” on the bill at the moment when it comes to non-germane amendments, like a proposed vote on the House-passed bipartisan tax bill. Last week, Thune was bullish on needing a short-term FAA extension. He was a tad more bearish on Tuesday, instead saying an extension would in part depend on “people’s willingness to stay around.”

Needless to say, any Senate changes to the House-passed FAA reauthorization would require another vote across the Capitol, as would any effort to kick the deadline down the road. Clinching an extension would also require a unanimous consent agreement in the Senate, which isn’t always an easy task.

— Burgess Everett and Ursula Perano

 

LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.

 
 

NEW SEASON, SAME DISASTER AID PROBLEMS

Hurricane season in the Atlantic Ocean begins in four weeks. And once again, FEMA isn’t expected to have enough disaster money to make it through.

The federal Disaster Relief Fund is forecast to run nearly $3 billion short before the new fiscal year begins on Oct. 1, with no cash by the end of July to cover response and recovery for major disasters. By the end of August, even money for pre-disaster mitigation work is set to be gone.

So lawmakers are starting to talk about a different kind of aid package. “We’ve done a supplemental for national security, and now it’s time for us to do a supplemental for the emergencies across the country,” Sen. Brian Schatz (D-Hawaii) told us. His home state continues to rebuild after last summer’s Maui wildfires killed more than 100 people and destroyed billions of dollars in property.

Across the Capitol, the House Appropriations Committee chair says he’s had “very, very preliminary” talks with Biden administration officials about the potential need for extra disaster aid.“So they have to make that decision,” Cole told us. “But then if they present us something, we’ll take a serious look at it, and I won’t look at it in a partisan way. I’ll look at it [as]: What do we need to do to make sure that any American caught up in a disaster is not being punished because we're involved in a political debate?”

FEMA spokesperson Jaclyn Rothenberg said in a statement that the agency will still make sure “lifesaving and life sustaining” work doesn’t stop as the fund runs short on cash. FEMA officials are working with the White House and Congress to make sure enough cash remains available, she added, and the agency plans to release an updated forecast this week for money in the disaster fund in the coming months.

Schatz and a growing number of other lawmakers would like to see an add-on to any disaster aid package: an overhaul of the way the Department of Housing and Urban Development uses community development grants to help rebuild disaster-ravaged communities.

Lawmakers complain that the process of getting money from that HUD program, known by the doozy of an acronym CDBG-DR, is slow and ridden with red tape. Before communities can even apply for the money and HUD can stand up a team to evaluate a request, Congress has to pass a law giving the OK for cash to be used for a specific disaster.

“The momentum is building” for a change, said Schatz. “And every time any community experiences a disaster, they realize how messed up the system is.” His disaster reform bill just picked up two new sponsors this month, Sens. Pete Ricketts (R-Neb.) and Catherine Cortez Masto (D-Nev.).

— Jennifer Scholtes

 

A message from American Chemistry Council – Chemistry Creates America Competes:

President Biden: American chemistry is the backbone of innovation. It's time to address the regulatory overload stifling American chemistry. Chemistry powers our semiconductors, medical devices, and clean energy initiatives. But your administration’s avalanche of regulations is hampering America’s progress and competitiveness. American chemistry is more than an industry; it's our future. The Biden Administration must commit to smarter, growth-oriented regulations before it’s too late - because when chemistry is enabled to create, America competes.

 
HUDDLE HOTDISH

When asked about his famous shimmying, Steny Hoyer told POLITICO he’s actually much better at the electric shuffle. (But he doesn’t like doing it next to Wes Moore because the governor is very good at it.)

Moon Rabbit chef Kevin Tien was spotted at a dinner meeting for House Democrats (and a tipster tells us a lawmaker carted off a container of the restaurant’s green sauce).

Don’t try this at home.

Capitol Police make way for ducklings.

Much-deserved pets for rescued lab beagles.

It’s like Kevin McCarthy never left.

Did Mitch McConnell watch the Met Gala?

QUICK LINKS 

Inside the increasingly ugly GOP fight over a Texas runoff, from Olivia Beavers and Ally Mutnick

House Republicans’ next target: reports of antisemitism in K-12 schools, from Dana Goldstein and Sarah Mervosh of The New York Times

Trump tries to privately mediate the Johnson-Greene fight, from Olivia Beavers and Jordain Carney

An interview with Jeff Van Drew, from Joey Fox at The New Jersey Globe

Miami Beach City Hall barricaded ahead of pro-Palestinian protest aimed at congresswoman, from Aaron Leibowitz at The Miami Herald

Longtime Henry Cuellar aide is eager to help feds make bribery case, his lawyer says from Greg Jefferson at the San Antonio Express News

TRANSITIONS 

Gabi Ghandour is now a legislative correspondent/aide for Rep. John James (R-Mich.). She previously was a legislative correspondent for Rep. Kelly Armstrong (R-N.D.).

 

A message from American Chemistry Council – Chemistry Creates America Competes:

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TOMORROW IN CONGRESS

The House and Senate are in session.

WEDNESDAY AROUND THE HILL

11:00 a.m. Assistant Leader Neguse, Pro-Choice Caucus et al on fertility care and reproductive rights (HVC Studio A)

11:00 a.m. Rep. Pressley, Haiti Caucus et al on the growing crisis in Haiti. (House Triangle)

1:45 pm. Whip Clark, Dem Women's Caucus Vice Chairs Williams and Fernandez, DWC et al on Mother's Day. (House Triangle)

 

A message from American Chemistry Council – Chemistry Creates America Competes:

Did you know that it takes 500 highly specialized chemicals to manufacture one semiconductor chip. And the Biden Administration is investing billions to build semiconductor plants in the U.S.

There’s just one big problem: the president’s administration keeps rolling out regulations and restrictions that could impair chemical manufacturers’ ability to produce the very inputs needed to achieve this expansion.

“You can build all the semiconductor plants you want, but if critical chemistries aren’t available, you won’t be successful in onshoring the chip manufacturing supply chain. This is an issue of national security.” – Chris Jahn, President and CEO, American Chemistry Council

Call on the Biden Administration to stop undercutting American innovation and national priorities.

Learn more at http://chemistrycreates.org

 
TRIVIA

MONDAY’S ANSWER: Ben Howard was the first to correctly guess that Walter Johnson was the Baseball Hall of Famer who lost a 1940 congressional bid in Maryland's 6th District.

TODAY’S QUESTION, from Ben: Queen Victoria gifted the Resolute Desk to President Hayes in 1880 and has been in use in the White House by nearly every ensuing president. Which president was the first to use the desk in the Oval Office?

The first person to correctly guess gets a mention in the next edition of Inside Congress. Send your answers to insidecongress@politico.com.

GET INSIDE CONGRESS emailed to your phone each evening.

 

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