Happy Tuesday! On this date 35 years ago, the long-running animated TV show "The Simpsons" made its debut. And Congress just released the 1,547-page text of a stopgap, three-month government funding bill. As Homer might say, woohoo!
Republicans Fume Over ‘Dumpster Fire’ Funding Bill
Congress is once again rushing to pass a stopgap measure to fund the government and avoid a shutdown of federal agencies — and, as has so often been the case in recent years, the process has spun into a politically fraught mess.
Congressional leaders reached a deal Tuesday on a package that would fund the government until March 14 and include a host of other measures. The agreement on a so-called continuing resolution, just days ahead of a December 20 expiration of current federal funding, left staffers scrambling to finalize hundreds of pages of legislative text that had initially been expected to be unveiled two days earlier. The bill text, and an accompanying Disaster Offset and Government Efficiency (or DOGE) Act, was finally released just after 6:30 p.m. ET.
The dragged-out dealmaking left many Republicans fuming at House Speaker Mike Johnson, who faces a January 3 vote to keep his gavel in the next Congress. Conservatives abhor sprawling, must-pass, year-end legislative packages — and they argue that this legislation closely resembles one of those "omnibus" bills rather than a simple extension of government funding. (Some conservatives oppose those "skinny" bills on principle, too.)
The deal reportedly includes:
- About $100 billion in disaster aid in response to the hurricanes that hit the southeast this year;
- $10 billion in financial assistance to farmers;
- a one-year extension of the farm bill;
- a provision allowing year-round sales of gasoline with a higher ethanol blend, a major win for corn and ethanol producers;
- a major overhaul of pharmacy benefit managers, which could lead to lower prescription drug prices;
- extensions of Medicare telehealth flexibilities and several other health-related measures.
"It’s a total dumpster fire. I think it’s garbage," said Rep. Eric Burlison of Missouri, a member of the conservative House Freedom Caucus. Burlison told Newsmax that he’s disappointed in Johnson. "We complained about Nancy Pelosi dropping thousands of pages of omnibus bill before Christmas," he said. "How is this any different?"
Another Freedom Caucus member, Rep. Chip Roy of Texas, was outspoken in his opposition. "We get this negotiated crap, and we’re forced to eat this crap sandwich," he said. "Why? Because freaking Christmas is right around the corner. It’s the same dang thing every year. Legislate by crisis, legislate by calendar. Not legislate because it’s the right thing to do."
It isn’t just GOP hardliners who are angry at Johnson. Some moderates have also been giving him heat for his handling of this deal and the details of the legislation.
"The reality," Jake Sherman and Melanie Zanona of Punchbowl News wrote Tuesday afternoon, "is that Johnson had to accede to a host of Democratic demands because he needs their votes. Several senior House Republican leadership sources told us that more than 100 GOP lawmakers are likely to vote against the bill."
Johnson reportedly tried to sell the deal to his skeptical members at a morning meeting of House Republicans, and he defended it at a news conference, arguing that it is not a "Christmas tree," as those on Capitol Hill refer to year-end bills festooned with a host of legislative baubles to appease lawmakers. He insisted that the bill started out as a simple funding stopgap but then needed to have disaster relief and farm aid added to it.
"This is not an omnibus, OK? This is a small CR that we had to add things to that were out of our control," Johnson told reporters. "These are not man-made disasters. These are things that the federal government has an appropriate role to do. So, I wish it weren’t necessary. I wish we hadn’t had record hurricanes in the fall. And I wish our farmers were not in a bind so much that creditors are not able to lend to them. We have to be able to help those who are in these dire straits."
Some House Republicans reportedly added their own fresh demands, as CNN reports they made "a last-minute push to shore up funding for the Department of Homeland Security in the continuing resolution, hoping to give President-elect Donald Trump the resources to fulfill his mass deportation pledge."
But the broad-based GOP anger raises questions about how the bill will get to the House floor. Johnson said that he plans to give members 72 hours to review the legislation. He also said he would like to try to move the bill through regular order rather than under a suspension of the rules, which would require a two-thirds majority. Both paths present hurdles: It’s not clear that the bill can clear a procedural vote in the Rules Committee, or that it can win a two-thirds majority on the House floor, given GOP grumbling.
The bottom line: The timing of votes this week remains unclear. If Johnson sticks to the 72-hour rule, Friday is the earliest the House would vote. Still, no one believes we’ll see a government shutdown at the end of the week. Remember, though, that this stopgap just kicks the annual government funding bills into early next year, when a GOP-led Congress and the new Trump administration also plan to be pursuing key items on their agenda.
We’ll have more tomorrow on what is or isn’t in the final deal.
Hawley Proposes Major Increase in the Child Tax Credit
Sen. Josh Hawley is calling for the Child Tax Credit to more than double in value, rising from the current maximum of $2,000 per child to $5,000 per child annually. Parents would be able to claim the credit in the year in which a pregnancy begins, even if the birth occurs in the following calendar year.
The proposal from the Missouri Republican comes as lawmakers stake their claims ahead of what is expected to be a lengthy and complicated battle over taxes in 2025, driven by the expiration at the end of the year of many of the individual provisions in the 2017 Tax Cuts and Jobs Act. Hawley appears to be taking a populist stance that embraces government support for families, including those who are not wealthy. The tax credit could be used to reclaim payroll taxes, not just income taxes, making it available to more low-income households.
"President Trump won with the support of working people with kids," Hawley wrote on social media. "Next year’s tax bill should provide them a big tax cut."
The proposal could cost $2 trillion to $3 trillion over 10 years, budget experts say, potentially putting Hawley into conflict with Republicans who are more focused on cutting spending and reducing the role of government in society. But Hawley is pushing back against cost concerns, telling Axios that "these are the folks who delivered us a majority," adding that the plan would be "fantastic for the economy."
The proposal borrows a page from the Democratic playbook, reflecting a growing interest among some Republicans in appealing to more middle- and working-class voters. Democrats temporarily raised the value of the Child Tax Credit to as much as $3,600 in 2021 during the pandemic, which helped drive the child poverty rate to a record low. But Republicans defeated an effort to extend that increase, resulting in a doubling of the child poverty rate the following year.
Vice President-elect JD Vance also proposed boosting the Child Tax Credit to $5,000 during the campaign.
Poll of the Day: Economy Looking Better in 2025 — if You’re Republican
Despite plenty of data points that suggest the U.S. economy is in remarkably good shape and has been for some time, Americans have been down on economic matters since the pandemic and its inflationary aftermath. In the latest survey from The Associated Press-NORC Center for Public Affairs Research, two-thirds of respondents said they think the U.S. economy is in poor shape, with only 5% saying it’s very good.
But as we’ve noted before, partisanship plays a major role in how people perceive the economy, and following Donald Trump’s win in November, Republican attitudes on economic issues have shown marked improvement. Although just 38% of Americans as of early December think the economy will improve next year — and only 11% of Democrats — nearly 70% of Republicans now think 2025 will be a better year in terms of the economy.
The survey was conducted from December 5 to 9 and included 1,251 adults nationwide.
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Fiscal News Roundup
- Congress Nears Deal to Avert Government Shutdown – Washington Post
- Hill Republicans Say Funding Deal Reached, but Johnson’s Dealmaking With Democrats Stirs Anger Among Conservatives – CNN
- House Republicans Fume at Speaker Johnson Over Handling of CR: ‘A Total Dumpster Fire’ – The Hill
- Johnson’s Spending Deal Provokes Conservative Anger at the Wrong Time – Politico
- Lawmakers Seek to Rein in PBMs as Part of Spending Bill’s Sweeping Health Deal – The Hill
- Government Funding Bill Will Run Through March, Include $100B in Disaster Aid – The Hill
- US Funding Bill to Include Plan to Allow Year-Round E15 Gasoline Sales, Sources Say – Reuters
- GOP Senator Pushes Huge Increase to Child Tax Credit – Axios
- Retail Sales Rose at Healthy Pace Last Month in Latest Sign of US Economy’s Health – Associated Press
- Negativity About the National Economy Persists, but Republicans Are Optimistic About Improvements in 2025 – Associated Press
- Giant Companies Took Secret Payments to Allow Free Flow of Opioids – New York Times
- The Deficit’s Sky-High. Why the World’s Top Hedge Fund Isn’t Worried in the Slightest – MarketWatch
- America’s Debt Cannot Keep Stacking Up, Says Jeffrey Gundlach – The Economist
- Trump Sues Iowa Pollster Over Survey That Showed Harris Ahead – Politico
- Trump Ramps Up Legal Threats Against News Outlets – Axios
- After Trump’s Victory, Republicans Trust the Election System Again – New York Times
Views and Analysis
- Debt Risks That Lured Bessent to US Treasury Now Loom Large – Liz Capo McCormick and Viktoria Dendrinou, Bloomberg
- Trump’s Tariffs Could Be Leading to Buyer’s Remorse – Aaron Blake, Washington Post
- Bidenomics Was Wildly Successful – Bryce Covert, New Republic
- An Offhand Remark by Trump Gives a Glimpse Into His Worldview – Maggie Haberman, New York Times
- Trump Is Going Back to War With Congress – Matt Ford, New Republic
- Calling an End to Fed Rate Cuts Is Premature – Conor Sen, Bloomberg
- Trump and Fed Headed for Potential Conflict if Rate Cuts Paused – Christopher Condon, Bloomberg
- Flashing Yellow Light for Consumer – Courtenay Brown, Axios
- Make Daylight Saving Time Permanent? The US Economy Says Yes – Allison Schrager, Bloomberg
- Why Did Murders Surge in 2020? Research Says Economics, Not Activism – Philip Bump, Washington Post