Congress
John Kennedy is trying to get Trump to get serious about the debt limit
Senate Majority Leader John Thune has deputized a folksy Louisiana lawmaker known for his blunt political observations and creative analogies to take the lead in convincing President Donald Trump to develop a strategy for raising the debt limit later this year.
That Senate envoy, Sen. John Neely Kennedy, says Trump isn’t ready to focus just yet — and that attention deficit could have reverberations across the global economy.
Kennedy confirmed in an interview that Thune asked him a few weeks ago to lead shuttle diplomacy with Trump about the GOP’s options for preventing the U.S. from defaulting on its $36 trillion-and-counting debt later this year. Since then, Kennedy said, he has asked Trump and Vice President JD Vance “point blank” to start thinking about a plan for lifting the nation’s borrowing cap to head off a default — a breach that top economists predict would irreparably mar America’s reputation as a reliable borrower.
“I’ve done it publicly and privately, and it’s clear to me that the president is not ready to focus that much on the debt limit,” Kennedy said about his discussions with Trump.
“I think the president is clearly aggravated having to deal with it,” Kennedy, a member of the Senate Banking and Budget committees, continued. “And I don’t blame him. His attitude is: ‘Why didn’t y’all fix this before I took office?’”
Trump asked Congress to include a debt ceiling increase in its year-end government funding package in December, but dozens of House Republicans balked at the idea, leaving the unfinished business for the new president.
Thune, in a brief interview Monday, called Kennedy a “good advocate” in the debt limit discussions and said that several other Republicans are also involved in trying to unite the White House and GOP lawmakers around a plan.
A White House official, granted anonymity to speak candidly, called Trump a “master dealmaker” who is “always engaged in negotiations on Capitol Hill.”
But Senate Republicans have been pressing Trump since January to back a debt limit strategy, noting that time is of the essence. The day before the president was inaugurated, he sat down with Senate Republicans for a “very fulsome” discussion and spent 20 minutes talking about the debt limit, according to Kennedy.
Yet Kennedy said he wasn’t encouraged by Trump’s remarks: “I don’t have the slightest idea what he said. He was splendid in his evasiveness. And that’s when I concluded back then, and in subsequent conversations: I concluded that he’s not ready to focus on it yet.”
Congress is still waiting for the Treasury Department to issue a prediction for when the U.S. could default on its debt, with top lawmakers operating under the assumption that the so-called X-date is likely to hit sometime between June and August.
If tax receipts come in lower than expected this spring, Congress could face the fiscal cliff with little warning, as it did in 2023. So Senate GOP leaders are anxious for Trump to endorse some sort of plan — especially as they decide whether to raise the nation’s borrowing cap as part of the massive domestic policy package they hope to pass along party lines later this year.
If Trump and GOP leaders seek to raise the debt limit through that process, known as reconciliation, they would need to make the hard sell to fiscal conservatives demanding steep spending cuts in return — and then potentially deliver a similarly forceful pitch to more moderate lawmakers who could be spooked by the political ramifications of those reductions.
One of the deficit hawks, Sen. Ron Johnson (R-Wis.), said the “White House is very well aware” of his demand for returning to pre-pandemic spending levels as a condition of raising the debt limit.
“I know the president doesn’t like this issue. But he has to understand: There are those of us who realize that that’s the only leverage we have to bring down spending, and we don’t want to give up that leverage,” Johnson said in an interview.
House Republicans have already provided for a $4 trillion increase in the U.S. borrowing cap in their budget framework. If that gambit falters, GOP leaders will have to seek Democratic votes to avert a debt default outside the reconciliation process, opening up negotiations that could lead to higher government funding levels or other concessions to the minority party.
Unlike the House Republican budget, the Senate’s budget framework does not allow for raising the debt limit. But many Senate Republicans now endorse the idea of including such language as they decide their next steps toward actually writing their sweeping package of tax cuts and energy policy, along with border security and defense spending increases.
“The only question is whether we can get the votes in both the House and Senate to do it in reconciliation. Right now, that’s the plan,” Sen. John Hoeven (R-N.D.), who is close with Thune, said in a brief interview.
Asked if Senate Republicans have the support for keeping a debt ceiling increase in the reconciliation plan, Hoeven quipped: “If you could find that out and let us know, that would be really helpful, because that’s the question.”
Across the Capitol, several senior House Republicans have also privately acknowledged that they will need a backup plan if they can’t whip enough support for a party-line package that raises the borrowing limit.
Speaker Mike Johnson, Thune and top congressional tax writers are now meeting weekly with Treasury Secretary Scott Bessent to discuss the broader reconciliation effort.
“There are other potential vehicles — any spending bill is an option,” Thune said. Asked about the possibility of pairing it with a disaster aid package — another must-pass item on the 2025 legislative agenda — he added, “We’ll see.”
One thing is clear: There’s no real discussion of including a debt limit increase on the most pressing vehicle — the stopgap spending bill that is expected to move through Congress this week.
Johnson and senior House Republicans have no other plans for the debt limit right now other than to push for it to stay in the budget plan their chamber narrowly approved two weeks ago — and they are largely miffed the Senate is contemplating anything else.
When billionaire Trump ally Elon Musk lunched with Senate Republicans last week the debt ceiling briefly came up in conversation, but no decision was made on a strategy.
Senate Republicans also discussed the issue during a lunch last month with White House chief of staff Susie Wiles. There, Kennedy told Wiles she and Trump ought to be thinking about the best way to handle it. Wiles, Kennedy said, didn’t commit to a specific path for dealing with the debt ceiling and instead said she would talk to Trump about it.
“I just want to make sure that the president understands that if we do it outside of reconciliation, we’ve got to pay bribes,” Kennedy said about the prospect of having to strike a debt deal with Democrats. “There are two doors: Door No. 1 and door No. 2.”
Congress
Republicans’ faith in Mike Johnson is fading fast
Speaker Mike Johnson faced down a bruising “hell week” and ultimately pulled several key GOP bills across the line. But it came at a cost.
Republicans say Johnson’s habit of making last-minute, often contradictory promises to keep his tiny majority functioning is starting to catch up with him. Frustrations over his leadership, they say, are at an all-time high.
“I think this guy has divided us with a smile,” said Rep. Max Miller (R-Ohio), a longtime Johnson skeptic who has grown more vocal with his criticism and now says “without question” he will vote against keeping Johnson as top GOP leader in the next Congress.
This week’s chaos came to a head late Wednesday, with multiple members of key Republican factions yelling and swearing at Johnson on the House floor and in closed-door meetings.
Johnson tried to quell a rebellion among conservative hard-liners by privately reneging on an agreement with a group of midwestern Republicans that would have tied legislation allowing year-round sales of an ethanol fuel blend to the must-pass farm bill.
When some of the ethanol provision’s backers ran back to the floor to try to figure out what happened, they were too late. Some later confronted Johnson, who is now promising a future vote on the matter.
“Bullshit,” Rep. Ann Wagner (R-Mo.) yelled at the speaker as he tried to explain what happened later in the day, according to three people who participated in the huddle and spoke on the condition of anonymity.
This week’s floor chaos was just the latest example of Johnson leading crisis by crisis, ultimately pulling off GOP priorities but leaving a trail of disgruntled members and staffers in his wake, according to more than a dozen Republicans interviewed for this story.
It all comes as rank-and-file lawmakers grow increasingly worried about their ability to govern over the coming months and retain their majority in November — and amid quiet conversations about who else might be capable of leading the House GOP. While Johnson successfully managed this week to end the record shutdown of the Department of Homeland Security and fend off the lapse of a key surveillance program, more challenges loom.
A long-term deal to maintain those spy powers remains elusive, the Senate is expected to reject the farm bill House Republicans approved Thursday and members are agitating for yet another party-line reconciliation bill that stands to continue surfacing the GOP’s internal divides.
Johnson told reporters Thursday that complaints about his leadership style amounted to “fake news.”
“No one in this conference can say that I went against my word on anything,” he said. “You had requests and demands on opposite sides of the conference that were literally irreconcilable. If you meet one group’s demands, you can’t meet the other. And so it takes a lot of time to get people to a consensus and an agreement on that.”
“Everybody’s very happy with their work,” Johnson said. “It’s all smiles.”
Wagner hardly appeared thrilled as she recounted Wednesday’s events in an interview Thursday.
“We were promised a vote on this,” she said of the ethanol measure. “We went back to do our work in our offices, and then a deal was cut on the floor. … And once we became aware of it, we needed to extend those discussions.”
The ethanol measure, allowing year-round sales of a fuel blend high in corn-derived alcohol, vexed a coalition of Republicans who saw the measure as harming petroleum and refiner industry interests in their districts as well as ultraconservatives who had ideological objections.
The result of the infighting was that a Wednesday vote on the budget blueprint for a planned immigration enforcement funding bill stayed open for more than five hours as dozens of Republicans withheld their votes until they got a satisfactory response.
To placate them, Johnson ultimately agreed to delay consideration of the farm bill for a time — only to reverse himself again after livid ag-state members demanded a vote on the farm bill before the scheduled weeklong recess, leaving the ethanol issue for later.
That in turn enraged hard-liners like Rep. Chip Roy (R-Texas), who accused Johnson of going back on his word from only a few hours earlier.
In a closed-door meeting just off the House floor Wednesday night, Rep. Mariannette Miller-Meeks (R-Iowa) complained about how farm-state members always vote in line with GOP leadership only to get jilted on their own priorities.
During a separate “family meeting” in Johnson’s office, Rep. Michelle Fischbach (R-Minn.), who sits in a Johnson-appointed slot on the Rules Committee, asked why they should believe the speaker when he promised a future vote on the ethanol issue. Johnson had already promised the group a vote in late February that did not materialize.
Miller, a former White House aide to President Donald Trump, said he ultimately agreed to vote for the budget measure out of his support for Trump and after Homeland Security Secretary Markwayne Mullin personally asked him to. But he said the episode demonstrated why he thinks Johnson is unfit to lead Republicans beyond this Congress.
“It’s pretty debilitating when you’re supposed to follow a guy into battle, and I wouldn’t trust him to get out of a wet paper bag with an M4,” he said.
Johnson was happy to put the 76-day DHS shutdown behind him Thursday, telling reporters that “sometimes it’s an ugly process” but that he has “never broken my word to a single person in this building.”
But the instances of disarray on the floor have piled up in recent months, and not all of them can be attributed solely to the GOP’s tiny majority. Last week, Johnson and other leaders appeared unaware of serious concerns in his conference’s ranks about legislation curbing Endangered Species Act protections. They were forced to postpone consideration of the bill.
The week before that, the House cleared an extension of temporary immigration protections for people from Haiti — the latest instance where a Democratic-led discharge petition had succeeded in commandeering the GOP agenda.
Many Democrats have been happy to watch the internal drama and gloat, mocking the GOP’s disarray and papering over the pains their own caucus experienced when they were in power. But they have insisted the drama of the past few months stands alone.
“First reaction is: ‘Oh, my God, this would never happen under Nancy Pelosi,’” Rep. Don Beyer (D-Va.) said in an interview, harking back to speakers of the past. “In fact, it probably wouldn’t have happened under John Boehner or Paul Ryan or even Kevin McCarthy.”
Johnson has defenders inside the GOP ranks, such as Rep. Mike Lawler (R-N.Y.), who said “he’s doing fine” and “the bills are moving.” He also continued to enjoy the support of the most important Republican — Trump — who has shown no outward sign of dismay with Johnson’s leadership.
“These are complex issues, and sometimes they take more than five minutes to work through,” Lawler said.
Johnson will be tested as soon as lawmakers return from recess. The pro-ethanol Republicans say Johnson pledged to orchestrate a standalone vote on their measure the week of May 12, according to six people involved in the talks. Many Republicans expect it to fail since it will no longer be attached to a must-pass bill.
“Do I believe him? Probably not,” one of the House Republicans involved said about that timeline.
Wagner, when asked whether she had confidence in Johnson and GOP leaders, singled out House Majority Leader Steve Scalise for having “really stood up in the pack” and “gave his word in terms of how we would move forward.”
Even the members who weren’t part of the back-and-forths over ethanol blends or surveillance safeguards or budget priorities this week were dismayed by how it all went down.
Rep. Daniel Webster (R-Fla.), a veteran House member who announced his retirement earlier this week, parked himself on the House floor during part of the meltdown. Asked later what he thought of the interactions, he said, “I just thought we got to get it together.”
“We probably didn’t have it together when we started voting,” he said. “Probably should have waited until we were sure. It’s a lot of wasted time.”
Congress
Anthropic, OpenAI back Warner-Budd workforce data bill
A bipartisan Senate bill that would create a federal framework to track how artificial intelligence is reshaping the U.S. workforce has won backing from Silicon Valley tech giants including Anthropic, Google, Microsoft and OpenAI.
Sens. Mark Warner (D-Va.) and Ted Budd (R-N.C.) introduced the Workforce Transparency Act on Thursday, which intends to give Washington the real-time information needed to develop policy solutions for economic disruption and job losses associated with the technology.
The legislation would direct the Labor Department to collect and publish anonymized data on AI adoption across the public and private sectors. Data collected would include how workers use the technology and how that usage evolves over time.
The proposal comes as anxiety rises in Washington about the long-term effects of AI on the labor market and as both political parties craft messaging to respond to public concerns about the technology.
It would also establish a voluntary reporting system where companies and agencies can submit AI adoption data, and would then make anonymized versions of the data available to businesses, researchers and agencies.
Microsoft’s Corporate Vice President of U.S. Government Affairs Fred Humphries said the framework is helpful for “understanding AI deployment, productivity gains, and the creation of new jobs.”
“We know AI is beginning to transform work, but we don’t have enough data to understand how,” said Joshua New, director of policy at SeedAI, a nonprofit focused on American AI readiness that’s backing the bill.
The proposal is also supported by Alliance for Secure AI, Business Software Alliance, SCSP Action Program and Erik Brynjolfsson, a senior fellow at the Stanford Institute for Human-Centered AI.
Warner has made this issue a cornerstone of his reelection campaign, launching an ad in December highlighting how the rise in AI adoption is coinciding with steep job losses and an affordability crisis in the U.S.
CLARIFICATION: Updates to clarify Fred Humphries’ job title.
Congress
Trump signs DHS legislation, ending record-breaking shutdown
President Donald Trump signed bipartisan legislation on Thursday to fund key agencies at the Department of Homeland Security, officially concluding the record-breaking shutdown.
After more than 10 weeks, the president’s signature restores funding to the Coast Guard, TSA, Secret Service, FEMA and the Cybersecurity and Infrastructure Security Agency, along with other sub-agencies that don’t touch immigration enforcement. Congressional Republicans are separately working to enact tens of billions of dollars for Border Patrol and Immigration and Customs Enforcement through a party-line reconciliation package, a process that progressed this week with the adoption of a framework to unlock a special budget authority to bypass the Senate filibuster.
House Republicans pushed past internal divisions as the White House and DHS warned stopgap funds to cover missed paychecks — pulled from the One Big Beautiful Bill — would run out within days. Agencies were bracing for additional furloughs as soon as next week, as DHS staffers were expected to get their final paychecks on May 8, according to an administration official, granted anonymity to share the timing.
While some immigration agencies have yet to be funded, enforcement operations were already paid for under last year’s GOP megabill. ICE and Border Patrol agents never missed a paycheck.
Still, the DHS shutdown dragged on for 76 days, leaving the agency in limbo at a critical moment on a number of fronts — from national security concerns to hurricane preparedness and lingering impacts on U.S. travel. During that time, Secretary Kristi Noem was fired and Sen. Markwayne Mullin confirmed as the new head of the agency, while the lengthy shutdown left staff dejected at a time when the department was trying to regain its footing after months of turmoil.
The agency, which oversees ICE and CBP, has been at the center of the monthslong funding fight on Capitol Hill. In the wake of the Trump administration’s deadly operation in Minneapolis, Democrats stayed united in resisting additional funding for those agencies without additional guardrails placed on immigration enforcement. Democrats ultimately failed to gain significant policy concessions from the Trump administration, and have questioned why the White House needs more funding for immigration agencies when it has billions remaining for border security and deportations from last year’s GOP megalaw.
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