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Capital agenda: Cue shutdown watch after Republicans go it alone on ICE funding

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Republicans solved an immediate crisis Tuesday, clearing for President Donald Trump’s signature a party-line bill to fund immigration enforcement agencies into 2029. But that hardly improves the chances of avoiding a shutdown for the rest of the government.

Members of both parties say the odds of another federal funding lapse are unimproved, if not heightened, by the GOP’s choice to fund ICE and Border Patrol for three years without buy-in from Democrats — even though they no longer have to fight about one of the thorniest policy issues confronting Congress.

As Sen. Lisa Murkowski (R-Alaska) put it, the GOP’s move to fund immigration agencies for three years “takes care” of the threat of a shutdown “in that area … But how many other accounts do we have that we could have another kerfuffle?”

“It’s not helpful for sure,” Sen. Patty Murray of Washington, the Senate’s top Democratic appropriator, told reporters of the GOP’s use of the budget reconciliation process for funding DHS immigration activities. “It makes it very difficult for us moving forward.”

Republicans’ circumvention of the normal appropriations process comes less than four months from the next government shutdown deadline Sept. 30, which will hit just weeks before the midterms determine which party controls the House and Senate next year.

It’s widely accepted on Capitol Hill that Congress will need to pass a stopgap funding bill to keep cash flowing for the agencies past the November elections. Yet some are predicting that Senate Minority Leader Chuck Schumer will go further, directing his members to oppose a funding patch — though Democrats have not committed to threatening a shutdown.

“They do not want appropriation bills. They do want to shut down the government,” Sen. John Kennedy told reporters of Democrats. “And they think they’re going to take the House and maybe the Senate and can get a better deal then.”

Many appropriators are holding out hope that collegiality on the House and Senate funding panels will ultimately prevail — if for no other reason than the margins of the GOP majorities in both chambers depend on it. Others are concerned Republicans have opened the door to funding more conservative priorities through reconciliation measures rather than the annual government funding bills.

After House Freedom Caucus Chair Andy Harris of Maryland floated the idea this week of putting more controversial spending proposals into party-line packages, House Appropriations Chair Tom Cole (R-Okla.) immediately rejected it.

“We’re not doing that. I will just tell you flat out, that will not happen,” Cole told reporters Tuesday morning. “I don’t think [the GOP-only reconciliation bill] is a precedent. But if it became a regular practice, I certainly wouldn’t be supporting it.”

What else we’re watching:

—TRUMP REJECTS A PULTE OFF-RAMP TO SAVE FISA: Trump indicated in a private meeting with Speaker Mike Johnson Tuesday he’s not inclined to appease Democrats and pave the way for an extension of Section 702 of the Foreign Intelligence Surveillance Act by quickly nominating a permanent director of national intelligence to replace the controversial acting director, Bill Pulte. The deadline to avoid a program lapse is Friday.

Trump doubled down on his pick Tuesday evening, announcing on Truth Social that Pulte would officially take the reins on June 19 — even earlier than what many had expected.

Most Democrats are still refusing to move forward with a reauthorization of Section 702 authority — or approve another short-term extension — so long as Pulte, a Trump ally with no intelligence experience, remains in the post.

“People were already getting grumpy about continued short-term extensions, and the naming of Bill Pulte just made them more grumpy,” said Rep. Jim Himes of Connecticut, the top Democrat on the House Intelligence Committee.

— HOUSE OVERSIGHT TO PRESS BILL GATES ON EPSTEIN: Bill Gates has gotten used to hitting softballs from lawmakers about his philanthropy. But the billionaire Microsoft founder and global health activist will face a very different audience Wednesday when he’s due to answer questions behind closed doors about his ties to Jeffrey Epstein.

Gates is set to testify before House Oversight and Government Reform as part of the panel’s ongoing Epstein investigation, and members, in interviews over the past week, say they aren’t going to take it easy on him. It will be a test of whether the world’s richest man can continue to avoid the reputational damage others have incurred by virtue of their ties to the late, convicted sex offender, as people who rely on Gates’ philanthropic foundation have not yet cut ties.

“It’s obviously really, really troubling, and I’m somebody who believes that Bill Gates has done extraordinary philanthropic work around the world and truly life-saving work,” said Rep. James Walkinshaw (D-Va.), a member of the panel. “But we obviously have to separate our feelings about that from this investigation, and those two things co-exist.”

Meredith Lee Hill, Carmen Paun, Hailey Fuchs and Calen Razor contributed to this report.

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Blanche vote is rescheduled, but there’s no deal

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Senate Judiciary Chair Chuck Grassley rescheduled a planned vote on Todd Blanche’s nomination as attorney general late Friday in a preemptive move as negotiations between the Trump administration and GOP holdouts continue.

The vote, now set for Tuesday after a scheduled Thursday vote was postponed, isn’t an indication that a deal allowing for Blanche’s confirmation is near, so much as it is a nod to Judiciary Committee rules that require three days of notice for a panel meeting.

There is no sign that President Donald Trump is about to acquiesce to the unflinching demands of Sen. John Cornyn (R-Texas), who wants a controversial settlement agreement between Trump and the IRS substantially pared back.

Cornyn, who lost his primary to a Trump-endorsed candidate, wants the Justice Department to nullify a $1.8 billion “Anti-Weaponization Fund” and limit the scope of a tax audit immunity component of the pact.

Trump told reporters earlier Friday the fund is “dead” but added “I wish it weren’t.”

“I’d like to see them compensated,” he added, referring to people he considers victims of government abuse, including participants in the Jan. 6, 2021, Capitol attack.

To advance Tuesday, Blanche needs to pick up Cornyn and Sen. Thom Tillis (R-N.C.), another senator on the panel with similar concerns. He can’t lose any GOP votes if he wants to be reported favorably out of the Judiciary Committee.

“Chairman Grassley wants Todd Blanche’s nomination to be successful,” said a Judiciary Committee spokesperson, who declined to be named. “Noticing the markup gives more time for the White House to secure the votes for the President’s nominee. Grassley would like to see Blanche confirmed before the August recess as he has an excellent record restoring law and order and keeping Americans safe.”

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Scalise will kick off August campaign sprint in marquee Nebraska House race

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House Majority Leader Steve Scalise is zeroing in on one of House Republicans’ biggest contests — a purple district in Nebraska — when he starts his recess campaign sprint.

Scalise will travel to Nebraska’s 2nd Congressional District in the Omaha area for an event with Republican Brinker Harding in the coming days, according to a person with direct knowledge of the matter granted anonymity to share plans not yet made public. Republicans are digging in to defend the seat, which Kamala Harris won in the 2024 presidential race and is among Democrats’ best pick up opportunities this fall as they seek to flip the House.

Harding is running against Democratic consultant Denise Powell to replace retiring GOP Rep. Don Bacon. Bacon, a moderate-leaning Republican, flipped the Omaha district red in 2016.

After Nebraska, Scalise is planning to travel across the country throughout August, including to defend GOP incumbents Mariannette Miller-Meeks’ and Zach Nunn’s key battleground seats in Iowa’s 1st and 3rd Congressional Districts and Derrick Van Orden in Wisconsin’s 3rd Congressional District.

He’ll boost candidates working to flip blue districts like Laurie Buckhout in North Carolina’s 1st Congressional District, Derek Merrin in Ohio’s 9th Congressional District and Mike LiPetri in New York’s 3rd Congressional District.

Scalise also plans to travel to Michigan, Colorado, South Carolina and Texas for campaign events over the August recess.

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Trump needles Cornyn as Blanche remains blocked

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President Donald Trump goaded John Cornyn on social media Friday morning, accusing the Texas senator of withholding his vote on Todd Blanche’s attorney general nomination in retaliation for Trump’s central role in his political demise.

Cornyn, who lost his May primary to Texas’ scandal-ridden attorney general, the Trump-endorsed Ken Paxton, has threatened to block Blanche’s nomination in the Senate Judiciary Committee until the White House promises to permanently shelve its $1.8 billion “anti-weaponization fund” in writing — something Trump appears unwilling to do.

“John Cornyn never had a problem with the so called “Fund,” which will not benefit me, but rather the great American Patriots who were hunted down like dogs and whose lives were unfairly and illegally destroyed by the Crooked Joe Biden Administration, until after I decided to Endorse and Support his Republican Primary opponent in Texas, who easily won the Nomination for the United States Senate,” Trump wrote on Truth Social.

Several Republicans bristled at the fund, which could have been deployed to compensate Americans who faced charges after the Jan. 6 Capitol riot and which gives the president and his family audit immunity over taxes. At his July confirmation hearing, Blanche said that the fund, part of a settlement the president reached with the IRS, was defunct. But the administration has been “reluctant to change” the text of the settlement, Cornyn told reporters Thursday.

Trump signaled his continued support for the Jan 6 rioters on Friday.

“I will always feel that these victims of government abuse should be paid back for what they were forced to endure, their lives have been ruined!” he wrote. “Millions of people agree with me, as was proven in my landslide Presidential win, where this was a major subject of debate, and so did John Cornyn, until he lost his Election to an opponent that I Endorsed.”

On Thursday, the president suggested that he could punt a Senate vote on Blanche until after Cornyn — and Sen. Thom Tillis (R-N.C.) — leaves the chamber at the end of the year. Cornyn, however, suggested on social media that there are other Republican senators with concerns about the fund.

“After the midterms, who knows who’s going to be the next United States senator from North Carolina or Texas?” Cornyn told reporters.

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