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Ruby-red Florida is still preparing for a financial storm from DC

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TALLAHASSEE, Florida — In this hurricane-prone state, Republican legislators say they are preparing to weather a political and financial storm.

In other states led by Democrats, the moves by lawmakers could be labeled “Trump proofing.” But no matter the framing, Florida’s GOP-controlled Legislature is about to wrap up work on the state’s budget with a series of significant steps designed to shore up reserves and curtail spending.

The rationale given by Republican leaders includes everything from making the state’s budget resistant to a possible recession (without mentioning the economic impact of tariffs imposed by President Donald Trump) to acknowledging “uncertainty” associated with Congress and potential cuts to Medicaid, food aid and federal agencies responsible for helping with emergency efforts.

“Should we have the expectation that if the federal government is spending less to get their budget and debt under control that we should be held harmless? I don’t think it works that way,” said Senate President Ben Albritton (R-Wauchula.) “The question is: ‘Do I believe this budget prepares Florida for what could be coming out of the ‘DOGE’ cuts or just the changes that come out of Washington D.C.?’ And I would say yes.”

Lawmakers in Tallahassee got to this point following a protracted and bumpy session, during which legislative leaders clashed over spending levels and tax cuts. State House Speaker Daniel Perez (R-Miami) initially wanted to permanently lower Florida’s sales tax rate, but he encountered headwinds from Senate Republicans as well as Gov. Ron DeSantis. DeSantis contended the sales tax rate cut would benefit tourists and would undercut his push to cut local property taxes.

After being unable to come to a deal during their normal 60-day session, legislative leaders reached an accord late last week. The final deal calls for $2.25 billion in “revenue reductions,” but part of that total includes steering extra money into state reserves while also dedicating money to paying down existing debt. The Legislature also intends to pass a proposed constitutional amendment that would ask voters to permanently increase the size of reserves.

Perez said his push was less about tax cuts and more about paring back spending he asserts had gotten out of control during DeSantis’ time as governor.

But he also argued it would give Florida extra money that could be tapped into if another recession happens. During the Great Recession of the late 2000s, Florida Republican legislators resorted to large budget cuts, but they also drew down reserves and voted to raise taxes and fees to make up the difference

“None of us know what the future holds,” said Perez. “When we had a recession, the state of Florida was not prepared for that recession. We began to scramble. … We did not have the money that was necessary to protect Floridians. After this bill passes we will be in a better place.”

Florida currently has billions in reserves, including a mandated “Budget Stabilization Fund.” They were able to reach that point because the state’s economy grew in the aftermath of the Covid epidemic, while Florida was also flush with billions that came from Congress as part of massive aid packages.

Lawmakers are still tinkering with the current budget, but they are expected to land on a final total this month that puts overall state spending below the amount spent during the current fiscal year that ends on June 30.

The Legislature is also taking steps to claw back billions in unspent money. On Thursday, lawmakers sent DeSantis a bill that would free up $2.1 billion that Florida had set aside three years ago to assist private insurance companies struggling with backup financing due to the state’s property insurance crisis. The money would have eventually reverted back to the state’s main budget account, but legislators decided to speed that up.

As the session has gone on, top Republicans have initially side stepped questions about how much federal grant money state universities lost due to cuts pushed by Elon Musk and the Department of Government Efficiency efforts. Likewise, there has been little debate or discussion about potential impacts to other programs that are heavily reliant on federal aid such as Medicaid.

Florida is also still waiting on money it previously requested from the Federal Emergency Management Agency in response to a flurry of hurricanes that have ripped through the state in recent years.

“There may not be a FEMA next year, none of us know that,” state Senate budget chief Ed Hooper (R-Palm Harbor) said while defending the legislative proposal to set aside extra money for the reserves.

Under the current plan legislators will set aside $1.5 billion over the next two years that will eventually roll into the “Budget Stabilization Fund” if voters ago along with the idea of increasing the size of that reserve.

Some Democrats — who contend the state already doesn’t spend enough on teachers, health care and other programs — raised questions this week about the efforts to put money away in a “lock box,” questioning how easily the Legislature could tap into the fund. The proposal going before voters says the state could withdraw money fund for a “critical state need,” even though that term isn’t defined.

“It’s important to have flexibility because you never know what will come your way,” said state Rep. Christine Hunschofsky (D-Parkland).

But Republican legislators backing the idea said they wanted to make sure the money was only used to deal with a financial crisis or emergency for the state.

“We are doing this so we are truly prepared for a break-the-glass situation,” said Rep. Lawrence McClure (R-Dover), the House budget chief.

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Senate confirms Blanche as attorney general

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The Senate Saturday confirmed Todd Blanche to be attorney general, following a weeks-long struggle with a handful of wary Republicans.

The Senate voted 50-49 to approve him, with GOP Sens. Susan Collins of Maine and Lisa Murkowski of Alaska joining with Democrats in opposition.

Blanche, President Donald Trump’s former personal attorney, has been serving as acting attorney general since Pam Bondi’s ouster in April. Questions about Blanche’s potential conflicts of interest from representing Trump, as well as his role in the creation of a $1.8 billion “Anti-Weaponization Fund” as part of Trump’s settlement this spring with the IRS, created headwinds to his confirmation among a key group of Senate Republicans.

Sen. Bill Cassidy, the Louisiana Republican who lost re-election after Trump endorsed a primary challenger, helped Blanche clinch his 50th vote Friday. He said Blanche wasn’t perfect but that he wasn’t sure Trump would pick someone better to lead the Justice Department.

“The choice is not between perfection and Mr. Blanche,” Cassidy said on the Senate floor. “It is between Mr. Blanche and another acting attorney general who may not run the department effectively under President Trump and who indeed may not be as good as Mr. Blanche.”

Cassidy’s support came after Blanche had already spent weeks negotiating with Sens. Thom Tillis of North Carolina and John Cornyn of Texas, who vetted his nomination as members of the Senate Judiciary Committee. Cornyn struck an agreement with Blanche Sunday for the DOJ to curtail the payout fund and rein in a deal to exempt Trump from IRS audits.

Cassidy’s support came hours after Murkowski announced that she would oppose Blanche’s nomination, putting it on the brink of potential failure. Between unified opposition from Democrats and Sen. Mitch McConnell’s absence for health reasons, Blanche could only lose two Republicans and still be confirmed.

Hours before Friday’s vote, Murkowski told reporters she spoke with Blanche multiple times but that she was “good with where I am.” She said there was no “one” thing that motivated her decision.

“If there was one thing, we might be able to go back to the White House and say ‘Hey, can we work on this one thing,’” she said. “But for me it was a compilation.”

She added that she believed the anti-weaponization fund is “pretty dead” but “what is not so clear” are the audit immunity provisions of Trump’s IRS agreement, “which I just think are viewed by so many in this country as kind of a special and sweet deal for the president and his family.”

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Senate passes funding bill to avert October shutdown

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The Senate passed a bill Saturday to fund the government beyond the midterm elections, putting the onus back on the House to head off a shutdown looming Oct. 1.

The Senate approved the measure in a bipartisan 90-6 vote, with Sen. Darline Graham of South Carolina voting present. The bill would fund federal agencies through Dec. 11 at current levels, with some exceptions. Senate leaders sped up consideration of the legislation as part of an agreement reached Saturday morning to allow members to leave for August recess.

The House and Senate have now each passed different bills aimed at averting a shutdown at the end of the fiscal year. The House bill would fund the government through Dec. 4.

The Senate legislation sets up a year-end standoff over the Trump administration’s controversial plan to put political appointees in charge of approving federal grants. The bill would block the administration from finalizing that rule during the length of the stopgap — and lawmakers are already expecting a December brawl over the issue.

Sen. John Kennedy (R-La.) said this week that he’s going to “fight like hell” in December to ensure Congress doesn’t further obstruct the grant overhaul.

But lawmakers on both sides of the aisle are resistant to the White House approach to grants. Senate Appropriations Chair Susan Collins (R-Maine) said she will “continue to oppose” the Trump administration plans “because I think they politicize the grants process, and I don’t want that to occur.” Sen. Patty Murray of Washington, the top Democrat on Senate Appropriations, said she too would “welcome the fight.”

The Senate rejected an amendment from Sen. Ted Budd (R-N.C.) intended to ensure that a ban on intoxicating hemp products kicks in come November, after Senate leaders at the White House’s urging included language in the funding bill to delay it.

The Senate bill includes language Democrats sought to ensure Immigration and Customs Enforcement and the Border Patrol don’t get any new funding under the patch. Republicans enacted $70 billion for those agencies along party lines earlier this year.

That prohibition could be contentious in the House.

Rep. John Rutherford (R-Fla.) said in an interview that the provision “could be a dealbreaker” and that he’s “not a fan” of the Senate version. Rep. Jeff Van Drew (R-N.J.) said Tuesday that he would say he’s undecided if GOP leadership whipped his vote on the Senate stopgap.

“I do not like the Senate language,” Van Drew said, noting the grant approval provision. “It’s one I would want to know what the president thinks.”

The White House issued a statement of administration policy in support of the Senate’s funding bill. No such memo was issued for the House bill, which did not include the funding increases and authorizations the White House requested.

“Every Member of Congress should support passage of this [continuing resolution] to keep the Government open as discussions on full year appropriations continue,” it reads.

Rep. Rosa DeLauro (D-Conn.), the top Democratic appropriator in the House, praised the Senate measure for including the grant and immigration enforcement language.

“This bill is a clear improvement over the House Republican continuing resolution, but we are still nearly two months away from the end of the fiscal year and should be working together to pass full-year funding bills,” she said in a statement.

Mia McCarthy and Jennifer Scholtes contributed to this report. 

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Senate eyes the exit after GOP-Trump deal

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The Senate is aiming to leave Washington for a five-week recess early Saturday after Republicans cut a deal with President Donald Trump to punt some of their priorities, including a framework for a party-line spending plan.

The Senate is trying to lock in an agreement that would set up votes on a college sports bill, a stopgap government funding bill, Todd Blanche’s attorney general nomination and GOP voter ID legislation, according to a copy of an internal notice reviewed by Blue Light News.

The Senate would then leave Washington until mid-September.

Any one senator could object to the tentative deal, forcing it to be altered or dragging the Senate deeper into the weekend. Senators believe there are still objections to advancing the college sports bill. Democrats are also waiting to see if one of their own will prevent speeding up Blanche’s confirmation.

The breakthrough is a U-turn from earlier Friday evening, when Republican senators emerged from a closed-door meeting predicting they would have to spend Saturday trying to break a stalemate within the party about how to wrap final votes before recess.

Shortly after that meeting, Trump spoke by phone with Senate Republicans including Ron Johnson of Wisconsin, Rick Scott of Florida and Mike Lee of Utah about the path forward for the GOP’s lengthy to-do list.

During the call, according to Johnson, Trump agreed to punt a vote on a budget blueprint for a third party-line spending bill until later in the year. Lee, who has been pushing for action on the separate SAVE America Act, also agreed to drop his demand for a formal, roll call vote on adjourning given the understanding with the president.

“I think the conclusion of the conference – and we had a discussion with the president and he agrees – [is] don’t take the vote tonight,” Johnson said after the meeting in Thune’s office.

Republicans were in talks with the White House throughout Friday. A White House official granted anonymity said Friday evening that “we’re continuing to have productive conversations with senators to advance several legislative priorities.”

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