Congress
Conservatives hope to enlist Trump in their spending war. It won’t be that easy.
Conservatives who want to slash the federal budget are hoping they can enlist President-elect Donald Trump and Elon Musk to their side come January. But last week’s meltdown over government funding underscored that Trump doesn’t always share their fiscal restraint.
Though Trump and Musk helped upend an initial bipartisan appropriations deal loathed by fiscal hardliners, 38 House Republicans later balked at Trump’s big demand in the next bill: a looser limit on Washington’s borrowing authority.
That move is a reminder that Trump exploded the deficit and greenlit billions in additional spending during his first term — two overall budget concerns that the House Republicans who opposed last week’s bill say they want to fix.
After the debt ceiling battle last week, the fiscal rebels, GOP leadership and Trump appeared to land on a handshake agreement to raise the debt limit next year in exchange for $2.5 trillion in spending cuts. It won’t be easy as Republicans try to deliver on campaign pledges that include bolstering border security, slashing taxes and boosting energy production.
For now, fiscal conservatives are banking on Trump being their best hope after losing battle after battle the last two years.
“We allow the bureaucracy to grow. We pass CR after CR,” said Rep. Andy Biggs of Arizona, who voted against a Trump-blessed funding plan on the floor last week. “That’s going to be where the Trump bully pulpit is going to come in and actually try to deal with some of this stasis, this problem.”
“We’ve never had the level of focused reform that you have coming in,” echoed Rep. Clay Higgins (R-La.). “The incoming executive branch is on our side.”
It’s a big risk for fiscal hardliners. Trump could be effective at pushing for cuts if he wants, or he could end up amplifying the GOP’s existing internal fights and cause more chaos. And if he doesn’t ultimately align with conservatives on their spending goals, it raises questions about whether those members will get into a public fight with the incoming president or bend to his will.
And they’re not the only ones courting Trump and Musk. Different factions of the conference have their own relationships with the president-elect and have been clearly trying to appeal to Musk on his mission to find significant government funding cuts. And Speaker Mike Johnson has worked diligently for months to keep Trump on his side, with mixed results. Trump may be unhappy with Johnson after the spending battle, but he hasn’t publicly crossed him ahead of the Jan. 3 speaker vote — where Johnson appears to be on thin ice.
“Things are going to be very different around here. This was a necessary step to bridge the gap to put us into that moment where we can put our fingerprints on the final decisions on spending for 2025,” Johnson said shortly after the House passed a bill that funded the government with wide Democratic support.
Other, more centrist Republicans, are also embracing the idea of the so-called Department of Government Efficiency, even if they aren’t aligned on the specifics. Some are actively hoping Trump can help them tame their hardliners instead of emboldening them.
“I think unified government helps us, because I think President Trump is going to tell some of these guys: ‘Get in line,’” said centrist Rep. Don Bacon (R-Neb.), noting, without naming anyone, that the GOP is also losing some of its most “incendiary” members.
Even appropriators are opening the door to having outside eyes on the federal budget process — they have their own ideas for where Trump and his allies should look to cut spending.
“If this DOGE group really wants to do something, they should look at the mandatory spending, how we can fix that problem,” said Rep. David Joyce (R-Ohio), referring to a bucket of government funding that involves things like Social Security, Medicaid and Medicare.
But members of the House Freedom Caucus and others in their corner of the conference have already started to try to sway Trump’s DOGE leaders, in particular. They warned Musk and his co-leader Vivek Ramaswamy during a closed-door meeting that some of the very House Republicans in the room with them were the biggest impediment to overhauling spending and the size of the federal government, according to three people in the meeting.
Conservatives will also have two notable allies in the middle of the White House budget process: Russ Vought, who Trump intends to nominate to lead the Office of Management and Budget, and outgoing North Carolina Rep. Dan Bishop, who is being tapped for the No. 2 OMB spot.
And they are encouraging Musk and Ramaswamy to effectively launch a public pressure campaign against Republicans who impede their efforts — a move that could risk backfiring. There are early signs that GOP lawmakers are already bristling after Musk injected uncertainty into the December spending fight. The two men also pitched creating a “naughty” and “nice” list to help keep members accountable.
“I think what they’re able to do is shine a spotlight on this crap and frankly force Congress to do its job,” said Rep. Chip Roy (R-Texas). “Their primary benefit is going to be [to] expose — if they can highlight the stupid then Congress has to defend the stupid, or they have to get with the program to fix the stupid.”
Congress
Senate to confirm Jay Clayton as soon as Thursday
The Senate could vote as soon as Thursday on Jay Clayton’s nomination to serve as director of national intelligence — a lightning speed pace that will necessitate buy-in from all 100 senators.
Confirming Clayton could help shore up enough votes from Democrats to extend a government surveillance program that expired last Friday over opposition to Trump’s pick for acting director, Bill Pulte.
“He will come out of the committee Thursday, at least hopefully, and then if we get consent, we can move,” Senate Majority Leader John Thune said in an interview Monday about Clayton, who Trump only nominated for the job late last week.
Democrats “ought to be happy with Clayton,” said Thune, adding that he’s a “good” and “solid” pick.
Sen. Mark Warner of Virginia, the top Democrat on the Senate Intelligence Committee, floated Sunday to CBS News that Clayton could be confirmed this week if every senator cooperates.
Senate Intelligence will hold a hearing Wednesday on Clayton’s nomination. If every member of the panel agrees, he could then get a committee vote Thursday. Confirming Clayton on the Senate floor hours later would require getting agreement from every senator to speed up the process. Opposition from a single member will punt Clayton’s confirmation to next week.
Confirming Clayton Thursday would, crucially, limit — and potentially circumvent — Pulte from becoming acting director of national intelligence, which Trump has slated to take place Friday, June 19.
The president’s decision to put Pulte in charge after Tulsi Gabbard’s departure at the helm of the Office of National Intelligence sparked bipartisan pushback, with Democrats saying they will withhold support for extending Section 702 of the Foreign Intelligence Surveillance Act while Pulte is in the acting role. Congress allowed the key government spy authority lapse last Friday without a deal.
Trump threw another curveball into a FISA extension over the weekend when he posted on social media that he was against reauthorizing Section 702 unless a GOP elections bill is attached. That bill, known as the SAVE America Act, does not have the votes to get through Congress.
Thune threw cold water Monday on tying the two issues together.
“Yeah, he’s, as you know, passionate about getting that done and wants to use every opportunity to take a shot at it,” Thune said of Trump and his desire to enact the elections bill.
But, Thune said, “we can’t get FISA done” if the policies are linked.
Congress
Senate eyes vote on updated housing affordability legislation
Senate Majority Leader John Thune is planning to put an updated version of a bipartisan housing affordability bill on the Senate floor for a vote this week, according to two people familiar with the bill dynamics and two Senate Democratic aides granted anonymity to discuss ongoing plans.
The version of the 21st Century ROAD to Housing Act that the Senate will vote on will include most of the House-passed language, including a provision restricting large institutional investors from buying single-family homes. The legislation would also add back Senate bills that were dropped from the House package that passed last month, the two people and the two aides said.
The Senate legislation comes after talks between Thune, Senate Banking Chair Tim Scott (R-S.C.) and ranking member Elizabeth Warren (D-Mass.). The updated Senate package was also discussed with the House and the White House, the aides said.
Still, it’s unclear if House leadership and the White House have signed off on the legislation.
The Senate and House have gone back and forth for months on language for a housing affordability bill as lawmakers on both sides look for a win to tout during a midterm election season dominated by cost-of-living issues.
Both chambers overwhelmingly passed their own versions of the housing bill — the Senate 89-10 in March, and the House 396-13 in May. The White House supported the Senate-passed bill and then backed the House-passed bill after it retained most of the Senate’s language on reining in private equity and other large Wall Street investors in the housing market — a top priority for President Donald Trump.
The Senate’s updated legislation would remove two of the House’s community banking deregulation bills due to budget scoring concerns, said two of the people familiar: two bills that would modify the Federal Deposit Insurance Act around failed insured depository institutions. The Senate bill also added back a provision to authorize the Community Development Block Grant Disaster Recovery program for seven years, as opposed to a permanent reauthorization in the Senate’s March legislation.
The Senate additionally re-inserted several upper-chamber priorities, including the BUILD NOW Act, which would incentivize communities to build more housing through the Community Development Block Grant program; the Rental Assistance Demonstration bill, which would raise the cap on housing authorities to convert voucher-based assistance; the Moving to Work bill, which would aim to add a new cohort of MTW public housing agencies; and the VALID Act, which would require Federal Housing Administration mortgage disclosures to include cost comparison information for veterans.
The package retains core wins for the leaders of both the Senate Banking and House Financial Services committees and their members and reflects input from all four leaders of those panels, one of the people familiar said.
Congress
Capitol Agenda: The new faces of the Freedom Caucus
The House Freedom Caucus is suddenly confronting an unsettled future after more than a decade at the center of GOP politics on Capitol Hill.
Some of its most prominent members are leaving Congress next year after seeking higher office, including former chair Rep. Andy Biggs and several media-friendly voices like Reps. Chip Roy, Byron Donalds and Ralph Norman.
Meanwhile, the group’s current chair, Rep. Andy Harris, is term-limited.
Who will step in to fill the shuffling ranks and maintain the caucus’ role as a hard-right vanguard is very much in question — especially as the group faces a potential shift to a Democratic House majority, which has historically made them less pivotal, and the looming transition to a Republican Party without a President Donald Trump.
The group — which is no stranger to reinventing itself — has a number of relatively unknown members ready to become the new faces of the hard right in the House.
— ERIC BURLISON: The second-term Missouri congressman and current HFC board member said he is considering running to be the next chair.
Last summer he was a vocal member demanding the full release of the Jeffrey Epstein files and has become a leading Republican pushing for more information on UFOs.
— ANDREW CLYDE: Another board member, Clyde has amassed significant power by Freedom Caucus standards by winning seats on the Appropriations and Budget panels.
He said in an interview he had not yet thought about running for chair but noted that “you don’t have to be the chairman to have outsized influence.”
— BRANDON GILL: This Texas freshman, the youngest sitting House Republican, is already seen as a rising star in the House GOP.
He’s made a name for himself through provocative social media posts and splashy legislative moves, such as seeking to impeach James Boasberg, the federal judge who ruled against some of Trump’s deportations last year.
Gill has said he wants to emulate Rep. Jim Jordan, the only founding member of the caucus still serving in the chamber.
— CLAY HIGGINS: Another board member and a more senior member of the group, Higgins said he has not ruled out seeking the chair post but is also “not interested in campaigning” for the job.
Higgins was the only lawmaker to oppose the release of the Epstein files. He said in an interview he’s hoping the group focuses more on policymaking in its next iteration rather than obstructing leadership prerogatives.
— ANDY OGLES: Inside the HFC, Ogles has emerged as a serious force over two terms, with his name floated for chair even before the end of his first term.
He also did not rule out running for chair or another caucus leadership position in a recent interview.
What else we’re watching:
— THUNE RACES TO BREAK SPY POWERS LOGJAM: Senate Majority Leader John Thune is racing to try to confirm the next director of national intelligence and end a stand off over extending a key surveillance power before members break for two weeks. The Senate Intelligence Committee will hold a hearing for Jay Clayton Wednesday — less than a week after the chamber formally received the nomination from the White House. Getting Clayton confirmed is a crucial step to unlocking Congress’ willingness to renew Section 702 of the Foreign Intelligence Surveillance Act.
— ANTI-FRAUD OPTIONS FOR RECONCILIATION 3.0: Republican leaders say proposals to crack down on fraud in federal safety net programs could be included in another reconciliation package this year. Turns out, a menu of options is developing in plain sight: Just look at the stack of about a dozen bills the House has passed in recent weeks to prevent waste and abuse.
Jordain Carney and Jennifer Scholtes contributed to this report.
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