Factions are forming on Capitol Hill over how to avoid a potential government shutdown by September 30. The key groups involved include GOP fiscal hawks and the White House, which are pushing for a long-term stopgap bill that would extend government funding until January or later. This approach allows Republicans to potentially pass spending cuts without relying on Democratic support. In contrast, Democrats and GOP appropriators are advocating for a short-term extension, funding the government through November or December, to allow for more comprehensive negotiations. Speaker Mike Johnson is tasked with navigating this situation, as he may have to push through a funding plan backed by President Donald Trump but not necessarily supported by Democrats. This has been a challenge for Johnson, who successfully brokered a deal in March but now faces a more difficult situation as Senate Democrats may not cooperate.
Caught in the middle of this conflict is Speaker Mike Johnson, who will have to decide whether to push through a funding plan backed by Trump but not Democrats. He did it successfully in March, but Senate Democrats may be less willing to cooperate. Sen. Brian Schatz (Hawaii), a prominent Democratic appropriator, warned that the previous attempt failed and urged his Republican colleagues to understand that the same tactics won’t work this time. The tension is further complicated by the White House’s strategy under OMB Director Russ Vought, who is pushing for a long-term budget bill to facilitate potential spending cuts through rescissions and reconciliation packages.
Democrats, on the other hand, are seeking a short-term extension to allow for more time to negotiate a bipartisan deal. They are not tying themselves to specific funding ultimatums but are instead exploring other avenues for Republican support, such as extending Affordable Care Act tax credits. Top House and Senate appropriators are considering a hybrid approach, which would provide a full year of funding for certain agencies like the USDA and VA, while using short-term extensions for others. However, Senate Majority Leader John Thune and Minority Leader Chuck Schumer have not yet engaged in discussions about the shutdown deadline, indicating that bipartisan talks are still in the early stages.
In addition to the ongoing funding debates, there are other developments on Capitol Hill. Thune is preparing to take procedural steps on the Senate floor to change rules on nominations, aiming to expedite the confirmation of Trump’s nominees. The push for faster confirmation comes after Democrats initially resisted confirming a batch of the president’s nominees prior to August recess. Meanwhile, Reps. Thomas Massie and Ro Khanna are getting closer to gathering the 218 signatures needed to force a vote on the Epstein files, with hopes of securing the last two signatures by the end of the month. Finally, the Senate Finance Chair, Mike Crapo, is reportedly in discussions with his Democratic counterpart, Ron Wyden, about moving legislation this fall to reform the practices of pharmacy benefit managers, indicating some momentum in reviving stalled policy agreements.