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Congress Is Grappling With Another 'Budget Dispute' Before Trump's Incoming Presidency

Word on the StreetThursday, Dec 19, 2024 4:02 am ET
2min read

Relying on one temporary funding bill after another, the U.S. government eventually makes it to the end of 2024. However, the latest temporary funding bill is set to expire on Friday, which means that Congress must either pass another stopgap funding bill or a formal budget bill for 2025 to ensure the government does not shut down. However, with Trump about to take office, there is clearly a very delicate atmosphere within Congress.

On Tuesday, House Republican Speaker Johnson proposed a new temporary plan to fund the U.S. government for the next three months. But this plan has sparked widespread discontent among conservatives, due to Johnson's generosity in spending.

Republican Congressman Ralph Norman expressed his anger at the outcome. Another Republican, Erik Burlison, called the plan a complete waste. With less than three weeks left before the election of the new Congress speaker, the frustration of the conservative Republicans could lead to unknown changes in the speaker's race.

The temporary bill announced on Tuesday contains many controversial add-ons, such as disaster aid for hurricane victims and farmers, reforms to the pharmaceutical benefit management industry, and the extension of the farm bill. This has shocked many hardline Republicans.

Previously, many conservatives had reached a tacit consensus to reach a compromise that everyone could turn a blind eye to before Trump took office, and then make drastic cuts to the budget bill after Trump's inauguration. However, Johnson's proposed bill obviously made some hardline conservatives unable to remain silent.

Even outsider Musk also posted on Wednesday, emphasizing that the bill should not be passed, and that he had never seen a more generous temporary funding plan. In the afternoon of the same day, Vice President-elect Vance also joined the criticism, calling for a streamlined expenditure and an increase in the debt ceiling, not to give the Democrats everything they want.

But Johnson emphasized that despite the flaws in the bill, it laid the foundation for Trump's leadership. He called on Republicans to calm down and welcome Trump's America First agenda.

Johnson also said that he had discussed the issue with Laswami, who leads the Government Efficiency Department, explaining the background of the plan. Laswami told him that he understood his difficult situation, and everyone understood that.

However, sources revealed that due to strong opposition from Trump's camp, Johnson has already begun to consider Plan B, to introduce a cleaner temporary agreement, that is, to abandon the original plan's add-ons.

But this could mean that Johnson will lose the support of the Democrats. Given that the Republicans only have a slim majority in the House and are not in the majority in the Senate, this makes Plan B look very dangerous.

Democratic Congressman Chuy Garcia predicted that considering the negotiations that have taken place, many members of the Democratic caucus, or most members, would not agree to Plan B. Especially the emergency disaster aid and health measures included in several add-on plans are key policies, which are crucial for gaining Democratic support.

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