Congress
In Year 2 of Trump’s funding grab, Congress fights back
Republican lawmakers are still locked in a power struggle with the White House over control of federal cash, long since President Donald Trump swept back into office with unprecedented orders undermining Congress’ power of the purse.
Earlier this month, GOP senators overwhelmingly agreed to a bipartisan government funding bill that would temporarily block the Trump administration from finalizing a federal rule to let political appointees steer money toward grants “aligned with the president’s agenda.” The House could clear that bill next month, and Trump is expected to sign it to avert a shutdown before the midterms.
And while the days of widespread funding freezes might be over, the Trump administration continues to create new rules for federal grants and then deny funding based on them — only to be repeatedly shot down in court this summer.
Lawmakers in both parties have also blasted White House budget director Russ Vought this year for delaying the release of cash for congressionally backed programs for antipoverty services, foreign assistance, banking in underserved areas and more.
“Congress has appropriated money, and you don’t have the authority to impound it,” Sen. Chuck Grassley (R-Iowa) chastised Vought this spring over the withholding of hundreds of millions of dollars the Trump administration is supposed to send quarterly to states.
Now Republicans are watching for clues about whether Vought, between now and Sept. 30, will claim the authority to nix appropriations in the final weeks of the fiscal year through what’s known as a pocket recession. He used the move last year to unilaterally cancel $4.9 billion in foreign aid through the legally dubious maneuver.
“Pocket rescissions would be a very interesting way to curry favor with the legislative branch — especially the one part of the legislative branch which has delivered on all of the administration’s shit,” Rep. Mark Amodei of Nevada, a senior Republican appropriator, said in a recent interview.
Indeed, the White House needs the support of GOP appropriators in both chambers to advance Trump administration priorities.
Those top lawmakers have already taken some modest steps to stop the White House from shirking Congress’ intent on spending by inserting stricter language into bipartisan funding bills Trump signed into law for the current fiscal year. That included new rules for shifting money between accounts and more explicit instructions for how dollars should be spent.
Some Republican lawmakers have also been resisting the administration’s push this summer to enact billions of dollars for the military and agriculture programs through another party-line budget reconciliation package. Top House Republican appropriators slammed the White House in June for pursuing a “risky and uncoordinated” strategy to enact funding for the Iran war through a party-line bill that’s not guaranteed to pass.
Relying on the reconciliation process to skirt the Senate filibuster is a key step to achieve the “paradigm shift” Vought has touted throughout Trump’s second term, designed to make funding negotiations “less bipartisan” so Republicans don’t have to agree to nondefense increases in order to get enough votes to boost military budgets.
“At what point did we stop legislating?” Sen. Lisa Murkowski (R-Alaska), another senior appropriator, said last month after Vought privately pitched Senate Republicans on the latest party-line plan, which would inherently take funding power away from the appropriations committees.
Murkowski was also among the Senate Republicans who chided the White House for not seeking input from lawmakers before forging ahead with its plan to put political appointees in charge of approving federal grants and minimize the role of the objective peer-review process for selecting recipients of those dollars.
“There was no consultation at all,” she said. “When you start issuing grants based on political connections, that’s not good for the system here.”
Senate Appropriations Chair Susan Collins (R-Maine) publicly called on Vought to extend the public comment period for the plan last month, to no avail.
She also continues to pan the pocket rescission gambit, saying in a recent interview that the administration should “go through the proper process with the Appropriations Committee” if it wants to rescind money intended for a specific program.
Under a decades-old law, the White House is allowed to send Congress a request to revoke funding, then withhold the cash for 45 days while lawmakers consider whether to approve, reject or ignore the proposal. Republicans last summer voted to approve Trump’s request to rescind $9 billion for public media and foreign assistance.
Then Trump used that same law weeks later to send Congress a request to rescind $4.9 billion in foreign aid — this time with less than 45 days left before the end of the fiscal year. Vought immediately declared the funding canceled, arguing that the administration had to withhold the funding until it expired at the end of September, regardless of congressional action.
The Office of Management and Budget did not respond to requests for comment on whether the White House plans to execute new pocket rescissions in the coming weeks. But Trump’s new pick for deputy director at the agency, Hal Duncan, told lawmakers this summer that the agency isn’t ruling out any “fiscal tools.”
House Appropriations Chair Tom Cole said White House officials have given him no assurances that they won’t deploy the tactic again this year and that his reaction would hinge on the type of funding eliminated.
“It would depend on what it is — it really would,” the Oklahoma Republican said last month.
In courtrooms throughout the country, federal judges continue to weigh in on whether Trump is illegally encroaching on Congress’ funding power.
Last month a federal judge declared that the administration can’t cancel grants based on new rules or goals established after the fact. The Trump administration later admitted in a different case that it canceled $7.6 billion “based solely on the political identity of the grant recipient’s state.” Then a federal judge halted changes to teen-pregnancy prevention grants, concluding that it’s unlawful “to impose conditions … that Congress did not intend or that are unreasonable or unexplained.”
The Supreme Court has yet to conclusively rule on the president’s spending tactics, and many Democrats on Capitol Hill argue Republicans shouldn’t rely on the courts to defend Congress’ authority. GOP leaders have repeatedly bucked Democratic calls for action, including to reverse the cancellation of specific grants, nullify Trump’s pocket rescission last fall and head off a future end-run around Congress by barring rescissions requests in the last months of the fiscal year.
“When are our Republican colleagues going to assert our legislative authority?” Rep. Debbie Wasserman Schultz of Florida, a top appropriator, said in an interview. “I mean, why in the hell did they run for Congress?”
Sen. Brian Schatz of Hawaii, a senior appropriator in line to be the No. 2 Democrat in the next Congress, was more charitable.
“I just think there’s a bipartisan desire to get back to the way the Constitution is supposed to operate,” he said in an interview, “where we decide how the money is spent.”
Rep. Josh Gottheimer (D-N.J.), one of three co-chairs of the House Democratic Commission on Artificial Intelligence, said Friday he intends to introduce two bipartisan bills that would address surging AI safety concerns.
The New Jersey Democrat — who along with his fellow co-chairs was tapped by House Minority Leader Hakeem Jeffries to chart his party’s path on AI — is likely to play a key role in setting the congressional agenda for the technology should Democrats retake control of the House in November’s midterm elections.
At an event held at Fairleigh Dickinson University, Gottheimer announced the American AI Security Act, legislation with Rep. Mike Lawler (R-N.Y.) that would create a mandatory government review process for advanced AI models ahead of their release. The reviews would be led by the National Security Agency and would last for 30 days, with the possibility for a single 30-day extension.
“Right now, there are no mandatory requirements for pre-deployment testing of frontier AI models,” Gottheimer said. “That doesn’t work in banking, it doesn’t work in food safety, it doesn’t work in medicine and it sure as hell shouldn’t work with the technology that experts say could help build a bioweapon or take down our power grid.”
It’s an echo of Gottheimer’s statement earlier this week, where he poured cold water on OpenAI’s endorsement of a provision in the bipartisan FRONTIER Act that would require third-party safety assessors to be embedded within leading AI firms. He suggested the companies should be forced to go further and submit their models directly to the government for review.
Gottheimer’s plan broadly follows the Trump administration’s existing vetting regime for advanced AI models, which came together in chaotic fashion this summer in response to cybersecurity risks raised by new models from OpenAI and Anthropic. The White House has kept specifics of that process under wraps.
The New Jersey Democrat also pledged to soon introduce the China FIREWALL Act, legislation with Rep. Nick LaLota (R-N.Y.) that would ban Chinese-developed AI models with open weights from government-issued devices. It would also block federal agencies from procuring software that is reliant on those models.
A perfect storm of affordability issues is developing for Republicans, and they have all but given up on making law to address it before November.
GOP senators’ attempt to fast-track a measure aimed at curtailing high energy bills associated with data centers, which overwhelmingly passed in the House Wednesday, was blocked Thursday.
The bill’s failure — at least for now — joins several last-ditch attempts by lawmakers to tackle affordability concerns this week. And with senators now openly speculating if they’ll cut their work session short before the midterms, and House lawmakers’ early dismissal, some Republicans are showing nerves about the rising cost of living heading into Election Day.
“Enough is enough. Americans are paying more at the pump, and Washington shouldn’t be making it worse,” House Freedom Caucus Chair Andy Harris said in a post on X, hours before his push to temporarily suspend the federal gasoline tax fell apart.
Speaker Mike Johnson threw cold water on that idea, saying his caucus couldn’t rally around any single proposal, despite prices averaging about $4.37 a gallon for regular and $6.31 a gallon for diesel — close to the record high — according to the American Automobile Association.
Meanwhile, seven House Republicans defected from their party this week to rebuke the Iran war launched by President Donald Trump. They included two new votes from Iowa Reps. Mariannette Miller-Meeks and Zach Nunn as Midwestern farmers wrestle with soaring fuel and fertilizer price increases due to the conflict.
Democrats are taking the opportunity to hit Republicans on pocketbook concerns.
“Everything is going to become more expensive because Donald ‘I-love-inflation’ Trump is doing everything he can to drive up costs,” Senate Minority Leader Chuck Schumer said from the chamber floor Thursday.
Some of the country’s economic ails are out of Republicans’ hands on Capitol Hill. The Federal Reserve, for example, just made Republicans’ lives harder, hiking interest rates for the first time in three years and signaling it might do so again this year as inflation continues to tick up.
But while Johnson and GOP leaders say their party is continuing to find solutions to cost-of-living issues, any action can’t happen until after the midterms.
“There’s a lot more work to do, but … it’s easy to forget the mess that we inherited,” House Majority Leader Steve Scalise said in a Thursday interview. “As much as I’d like gas prices to be lower, they’re lower today than where they were at the peak under [President Joe Biden], and they’re going to get lower when Iran gets resolved.”
What else we’re watching:
— PERMITTING TALKS CLOSE IN: Senators say they’re at the final stages of negotiating long-elusive legislation to ease permitting approvals for energy projects as they race to lock in a floor vote before the November elections. Environment and Public Works Chair Shelley Moore Capito (R-W.Va.) said Thursday as senators left town for the week that a deal is “very close,” while ranking member Sheldon Whitehouse (D-R.I.) said negotiations are “in final wrap up, but some of the most difficult issues are the last ones resolved.” Capito conceded that a resolution “may drag” into the third and final week of their work session — which would be a delay from the timeline she and Majority Leader John Thune laid out this week.
— COLLEGE SPORTS BILL KEEPS SENATORS IN TOWN: Opposition to advancing a sweeping college sports bill seems unlikely to derail it, but does threaten to keep senators in Washington past next week for passage. The bill overcame a second procedural hurdle Thursday with a 77-22 vote. But senators are out Monday because of the Yom Kippur holiday and would need unanimous agreement to avoid vote timing bleeding into late Friday night, at the earliest, to finish up work on the bill.
Mia McCarthy and Josh Siegel contributed to this report.
NEW YORK — Not too long ago, Republicans were salivating at the thought of using New York City Mayor Zohran Mamdani as a far-left boogeyman. Instead, moderate Gov. Kathy Hochul has emerged as the GOP’s go-to foil.
As Hochul runs for a second term, Republicans are hoping her middling popularity will be a drag on Democrats in competitive down-ballot races. Some Democratic candidates, meanwhile, are keeping her at arm’s length — a sign they recognize the downside of appearing with a governor often linked to Albany’s reputation for high taxes and lax criminal justice laws.
“There’s not a Democrat in the party in a swing district who wants to be near her,” said a state Democratic official, granted anonymity to speak candidly. “Her numbers aren’t as bad as four years ago, but they’re certainly not good.”
The current state of play is one neither party fully planned for. Mamdani, a 34-year-old democratic socialist who campaigned on freezing rents and taxing the rich, was supposed to be the Democrat who repelled suburban and upstate voters. Hochul has spent four years trying to be the Democrat who repels no one. Yet outside the city, the socialist is a curiosity and the governor a grievance.
After less than a year in office, Mamdani has amassed high favorability ratings in New York City and a positive perception nationally, while the suburbs ringing the city remain cooler on him. Hochul is being invoked far more broadly. Since casting Mamdani as a socialist neophyte carries less weight farther outside the city, Republicans have fixed their sights more squarely on her as the prime personification of the state’s leftward lurch.
New York, home to a handful of swing districts expected to determine control of the House, remains a high priority for both parties. And the top-of-ticket race between Hochul and Republican nominee Bruce Blakeman stands to impact voter turnout in races beyond their own.
“Outside of the New York City media market, Mamdani doesn’t have the same impact,” said Marc Molinaro, a former House lawmaker and ex-Trump administration official who’s now running for the state Assembly. “Most people further north just don’t have a relationship with the city. They may not love the city, they may not have an attachment to the city, but who do they see? They see the governor.”
On suburban Long Island, former state Assemblymember Mike LiPetri used his first television advertisement of the general election to decry “career politicians like Kathy Hochul and Tom Suozzi who sold us out and left us behind.” The opening screed in Rep. Nick LaLota’s TV spot is that “Kathy Hochul’s taxes are the worst in the nation.” And GOP candidate Anthony Constantino, running to succeed Rep. Elise Stefanik in a blood red upstate district, has accused his Democratic foe Blake Gendebien of being “beaten into submission” by the governor after he pulled a TV ad pledging to stand up to her.
In a statement, Hochul spokesperson Ryan Radulovacki said: “No amount of GOP spin changes the fact that New York Republicans gutted Medicaid, ripped food assistance from families and kids, and enabled Donald Trump, a historically unpopular president, as he tried to defund the NYPD and raised costs on everything from gas to groceries – while Governor Hochul put money back in New Yorkers’ pockets, passed free school meals, and stood up to Trump at every turn. Voters across this state see all of that, and they’re going to send Republicans a message in less than 50 days.”
Republicans are facing a tough midterm election with an unpopular president in the White House. They are trying to weather a political dynamic featuring widespread voter angst over costs, with high interest rates and spiking gas prices emerging as resonant plotlines in the Empire State. Losses in purplish and even red areas of New York would go a long way to costing Republicans the House.
Making Hochul the face of a Democratic Party framed around taxes and crime is meant to counter an otherwise bleak Republican environment and President Donald Trump’s unpopularity here.
But Democrats are casting doubt on how effective such messaging will be — especially compared to the GOP candidates’ association with Trump.
“I don’t think it’s anywhere near as potent as the president of the United States,” said consultant David Carlucci. “It is just a lash out as really one of the few options they have in terms of just playing the blame game.”
Meanwhile, Democrats are trying to thread a delicate needle as the governor seeks a second full term. Some are attempting to separate themselves from Hochul — a dance made all the more awkward as she marshals the resources of the New York Democratic Committee to aid down-ballot candidates.
In the North Country, Gendebien told supporters recently that Hochul is “unpopular” and “underwater” in the district he’s seeking to represent. According to a recording of a Sept. 3 town hall that was obtained by POLITICO, he also acknowledged that he didn’t know why.
Even in races where a high-profile surrogate could be a welcome boost to a relative unknown, the desire for the governor to stump isn’t necessarily strong. When asked if Hochul would be helpful on the trail for him, Mike DeCillis, a long shot Democrat challenging Rep. Nicole Malliotakis, replied: “Probably not.”
The district, a red-leaning seat that covers all of Staten Island and part of Brooklyn, is a “fickle pickle,” he said. “It’s not because of any specific policy. It’s the person they have been kind of trained and told that this is the person they shouldn’t like at all costs.”
Hochul’s zealous push for House Democrats — a years-long project launched after former House Speaker Nancy Pelosi blamed her weak showing in 2022 for losing down-ballot races — has further raised the stakes in a race that she’s largely expected to win. In 2022, she won by only 6 points.
“We’re going to be the state that sends Hakeem Jeffries to the speaker’s office,” Hochul said in an interview on NY1, highlighting her investment into the state party. She expressed confidence in flipping districts held by Rep. Mike Lawler, Lalota and Stefanik, and holding those represented by Suozzi and Reps. Laura Gillen, Josh Riley, Pat Ryan and John Mannion.
It’s unclear where exactly Hochul will stump for down-ballot candidates in the closing stretch of the election, though an aide said she will be supporting candidates up and down the ballot.
Republicans viewed Mamdani, of all people, to be their primary weapon in the suburbs and upstate, where voters tend to be moderate and more willing to back a Republican. But the mayor, who was viewed favorably by 69% of New York City voters in an August Siena Research Institute poll, has not been the beat-up toy many GOP candidates expected.
New York City mayors, who often bring left-leaning agendas into office, are typically viewed as easy targets for Republicans, especially in rural and suburban House districts. That strategy hasn’t always been effective, in part, because few voters outside the five boroughs consider the city’s mayor to be especially relevant.
“I’ve been asked many times, like, where does upstate and downstate start?” Republican state Sen. Peter Oberacker, who’s challenging Democratic Rep. Josh Riley, said in an interview last month. “You could almost determine where that line is by the concern about Mamdani. … In the more northern reaches of our district, it’s definitely a topic of discussion and concern. But as you come farther downstate, it gets a bit more intense.”
When asked whether the governor or mayor comes up more in discussions with voters, he said the former — and pointed to Hochul allocating $4 billion to help the city’s budget gap. “They feel this way that they’re not getting represented,” he said.
Riley doesn’t view Hochul as much of an issue. He touted her work tackling a dearth of affordable child care. “I’m eager to continue working on that with her,” he said in a statement.
In a state where Democrats hold all levers of power, Hochul is an obvious focal point for Republicans — the embodiment of a deep blue state’s policies on taxes, crime and regulations that drive up utility bills.
She’s tried to reverse that perception. She’s backed measures to scale back a controversial cashless bail law and touted middle-income tax cuts and rebate checks. And she’s embraced popular policies like expanding no-cost child care, banning cellphones in schools and a moratorium on data center construction.
But those policies are more popular than the governor herself.
The Siena survey found 49% of voters hold an unfavorable view of Hochul, with only 46% reporting a favorable opinion. Yet most voters back her efforts to curb Trump’s aggressive deportation campaign and New York’s data center construction pause, which Hochul rolled out this summer. The same poll found Hochul leading Blakeman by 10 points, with the largest chunk of her support coming from the city. She trailed Blakeman in the suburbs by 8 points, and they were nearly tied upstate.
Trump is even more unpopular with New York voters: Only 38% have a favorable view of him. He was slightly above water in the suburbs, but viewed unfavorably upstate and in NYC.
Despite those numbers, some Democratic candidates may not have much of a choice but to accept Hochul’s help.
The governor is using the state Democratic Committee this year to aid down-ballot candidates, opening field offices and providing political infrastructure to support those running in crucial races. This coordinated campaign is a stark departure from prior years when the state party functioned solely as an arm of the governor’s political operation.
The shift began in 2024 and is carrying over into this election year, as Democrats try to hold several seats on Long Island and in the Hudson Valley.
“She absolutely delivered in 2024 on this in a huge way,” said Rep. Pat Ryan, whose seat is not seen as competitive as it was two years ago. “She campaigned a bunch of times for me in that race and across the Hudson Valley and I dramatically outperformed in large part because of a lot of the things that she did. That’s only grown stronger now.”
New York Democrats must win without relying solely on Hochul’s coattails to carry them, though.
Distance themselves too far from the governor, and candidates run the risk of undermining the head of their party set on returning to Albany with a clear mandate for the next four years. Running too close with Hochul opens up swing seat candidates to Republican attacks that they’re the lackeys of a chief executive with so-so polling.
Ryan’s neighboring House member, Lawler, is viewed as one of the most vulnerable Republicans in the country. Earlier this year, he rallied with Trump — not the most popular figure in the district — and said he’d welcome Hochul to campaign for his Democratic opponent Cait Conley “any day of the week.”
In 2024, then-Vice President Kamala Harris narrowly carried the district, as Lawler won reelection.
With that past as prologue in mind, it remains unclear if Conley will appear with Hochul on the trail. But she’s bringing in other reinforcements. Former Transportation Secretary Pete Buttigieg, a potential 2028 presidential contender, campaigned with her in the district this week.
Conley has said outright that she does not want to campaign with Mamdani — a calculus that speaks to the independent-minded voters she needs to get on her side. Republicans have sought to tie them together in an attempt to portray her as too far to the left.
Lawler has repeatedly invoked both Mamdani and Hochul on the trail. At times, he’s trained more of his ire at the governor than his actual opponent.
“Their numbers are very similar in the district, and for different reasons and in different ways, they are equally as offensive to most voters in the district,” Lawler said of Hochul and Mamdani.
Still, Hochul’s allies believe it’s an error for Democratic candidates to disassociate themselves from the de facto head of the party. If she wins in November, she’ll continue to wield substantial power.
“I’ve never felt that running away from the head of your ticket is a winning strategy for any party in any year,” New York Democratic Party Chair Jay Jacobs said. “You make a mistake by distancing yourself from her where she can be helpful.”
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