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Congress readies another funding punt ahead of pre-Christmas shutdown deadline

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Staring down a government shutdown deadline in less than three weeks, congressional leaders have begun serious negotiations toward a funding patch that punts the deadline into President-elect Donald Trump’s second term.

A grand deal on final funding bills is highly unlikely before the Dec. 20 deadline, considering Speaker Mike Johnson and Senate Majority Leader Chuck Schumer have yet to strike a “toplines” agreement on overall spending totals for the military and non-defense programs. So lawmakers must now ready yet another stopgap that keeps federal agencies running on static funding — after they already punted on spending back in September.

Schumer said on the floor Monday that “both sides are making progress negotiating on a bill that will pass the House and Senate with bipartisan support.”

“We need to keep divisive and unnecessary provisions out of any government funding extension, or it will get harder to pass a CR in time,” he added. “For now, I’m pleased negotiations are on the right track.”

Republicans had been waiting for Trump to indicate if he preferred a stopgap bill that punted funding decisions into his term or if he wanted lawmakers to negotiate new spending levels now, so he could focus on other legislative priorities as he took over the executive branch. Trump has been uncharacteristically silent on the issue, but lawmakers are running out of time to incorporate the president-elect’s stance into bipartisan and bicameral talks if they want to avoid a shutdown. Johnson has said he and Trump talk frequently about funding, but the speaker won’t divulge the details of those discussions.

If Trump weighs in with sweeping demands closer to the deadline, when many details have already been hammered out, it could increase the chance of a deal falling apart. Neither party wants a shutdown at this point.

The length of the funding patch, known as a continuing resolution or a CR, as well as what special exceptions are included and how much disaster aid is attached will be the main focus of negotiations.

House conservatives are advocating for a new March deadline, which would bring it perilously close to a late-April trigger that would mean sweeping funding cuts unless Congress passes a bill with new spending levels by then. Democrats and many appropriators in both parties want an earlier deadline, both to defuse the risk of those cuts and to give federal agencies budget certainty sooner.

Leaders also aim to clear tens of billions of dollars in disaster aid this month, likely attached to a funding patch, despite calls from some GOP senators for a standalone vote. The White House requested more than $98 billion in emergency funding to help cover the costs of recent natural disasters, including Hurricane Helene and Hurricane Milton.

And Democratic and Republican negotiations are each pushing to add funding for other priorities that could prompt partisan skirmishes. GOP lawmakers also want to leave out funding the White House sought for things like climate and education programs.

The speaker long ago swore off a pre-Christmas so-called omnibus spending package that bundles the dozen individual measures that keep federal agencies funded each year, a mammoth bill that now regularly totals over a trillion dollars. Congress is out of time to pass all 12 bills individually through both chambers, a process that lawmakers now struggle to complete every year.

Conservatives in the House have long protested the omnibus process and would likely be incensed if Johnson greenlit such a bill now. They favor passing a stopgap bill this time, arguing Trump and the GOP majorities next term should set spending levels. Given Johnson needs to keep GOP lawmakers unified behind him before the formal Jan. 3 speakership vote, resorting to a stopgap this month helps him by delaying Republican infighting until after he has re-secured his post.

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Congress

Texas Rep. McCaul says he won’t seek reelection

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Saying he was seeking “a new challenge,” Rep. Michael McCaul (R-Texas) said Sunday he won’t run for reelection in 2026.

Speaking on ABC’s “This Week,” McCaul told host Martha Raddatz: “I’m going to serve the remainder of my term. But I’m looking for a new challenge in the same space that would be national security, foreign policy, but just in a different realm. “

McCaul, the former chair of the Homeland Security and Foreign Relations Committee, added: “I want to continue to serve the people of this country in national security and foreign policy and do what I’ve done the last two decades — make America stronger and the world safer.”

Raddatz responded: “Well, that’s a good plan. They’ll miss you on Blue Light News. You got a ways to go. Thanks for joining us this morning.”

McCaul subsequently posted the clip on X and added: “It has been the honor of a lifetime to represent the people of central Texas and to chair the prestigious Homeland Security and Foreign Affairs Committees. My father’s service in World War II inspired me to pursue a life of public service, with a focus on defending our great nation against global threats, and I have been proud to carry out that mission in Congress for more than two decades. I am ready for a new challenge in 2027 and look forward to continuing to serve my country in the national security and foreign policy realm.”

McCaul, age 63, was first elected in 2004. He drew 63.6 percent of the vote in his last reelection race in 2024.

Most of McCaul’s ABC appearance was spent discussing foreign policy and current international crises. He said, for instance, that he was worried that the deployment of Russian drones over Poland’s airspace last week represented an “escalation” of tensions in Europe.

“We’ve never seen anything like this in recent times,” he said. “And so, what I’m concerned about is that the escalation here and the temperature rising, we got to be very careful not to be on the precipice of a World War III.”

McCaul also said he expects Russian President Vladimir Putin to continue to cause trouble, at least to a point.

“I think he’ll continue to be provocative and saber-rattle. I don’t think he would use nuclear weapons. I think China put a red line,” McCaul told Raddatz.

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Trump policies to ‘drag’ on economic growth, CBO predicts, offsetting megabill gains

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Republicans claim the GOP megabill, coupled with President Donald Trump’s tariff and immigration policies, will “unleash economic growth.” Congress’ nonpartisan scorekeeper says not so much.

The Congressional Budget Office’s new economic estimates released Friday predict that over the next three years, policies implemented this year by Trump and the Republican-led Congress will have little effect on growth before the 2028 election.

That’s because Trump’s tariff policies and crackdown on immigration are estimated to cool the economy this year, more than outweighing any growth spurred by the tax and spending package Republicans turned into law this summer.

By next year, CBO expects that balance to change some, as the effects of the megabill begin to outweigh the negative economic impact of tariffs and immigration policy, pushing GDP growth higher than previously predicted.

Then, in the lead-up to the 2028 presidential election, the combination of the GOP policies are estimated to be mostly a wash for economic growth.

In 2027 and 2028, the GOP megabill’s boost to demand will wane as reduced immigration hits the labor force, acting “as a drag on growth,” the budget office predicts. Higher tariffs, however, will partially offset that hit, driving increased domestic production.

The result: As voters head to the polls in November 2028, the level of real GDP will be just 0.1 percent higher than predicted before Trump took office.

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‘Don’t even bother dealing with them,’ Trump says of Democrats’ shutdown demands

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President Donald Trump dismissed congressional Democrats’ demands ahead of a looming shutdown deadline in a Fox News Channel interview Friday, casting doubt on whether a deal to keep the government open is even possible.

“There is something wrong with them,” Trump said about Democrats in a rare in-studio “Fox and Friends” interview. “If you gave them every dream right now … they want to give away money to this or that and destroy the country. If you gave them every dream, they would not vote for it.”

“Don’t even bother dealing with them,” he added. “We will get it through because the Republicans are sticking together for the first time in a long time.”

Lawmakers have until midnight on Sept. 30 to reach a funding deal. GOP congressional leaders are eyeing a “clean” stopgap that would keep current spending levels in place, with a few exceptions, until late November.

But Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries said this week Democrats will not vote for any such bill absent bipartisan negotiations. Both leaders have said that health care concessions, such as extending soon-to-expire insurance subsidies or restoring Medicaid cuts made in the GOP megabill, are essential to a deal.

Democrats have say in the matter because any funding deal will need 60 votes in the Senate, where the GOP has a 52-vote majority. But Trump on Friday suggested he was not aware of the mathematics.

“We have to get Republican votes. That’s all,” Trump claimed. Pressed about the 60-vote threshhold, Trump responded: “No. We’re gonna do a — probably a continuing resolution, or we’re gonna do something. So we’re gonna do something,” he said.

“Here is the problem,” Trump quickly added, “the Democrats have, they’re sick. There is something wrong with them. Schumer is at end of the rope.”

Trump’s comments came after the Associated Press published an interview Friday with Schumer where he reiterated that Democrats would not support a clean GOP-led stopgap without securing health care wins.

The New York Democrat also said he was less reticent about sparking a shutdown now than he was in March, when he warned that a shutdown would only empower Trump to take more control of the federal bureaucracy.

Now, he said, “It will get worse with or without [a shutdown], because Trump is lawless.”

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