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Debt deal haunts the funding fight

Presented by American Chemistry Council – Chemistry Creates America Competes : An evening recap of the action on Capitol Hill and preview of the day ahead
Nov 27, 2023 View in browser
 
POLITICO Huddle

By Jennifer Scholtes and Caitlin Emma

Presented by

American Chemistry Council – Chemistry Creates America Competes

With assists from POLITICO’s Congress team

Sen. John Cornyn (R-Texas) speaks with reporters at the U.S. Capitol Oct. 30, 2023. (Francis Chung/POLITICO via AP Images)

Sen. John Cornyn (R-Texas) speaks with reporters at the U.S. Capitol Oct. 30, 2023. (Francis Chung/POLITICO via AP Images) | AP

CONGRESS RUNS INTO THE DEBT DEAL DEADLINE

Congress is back. The government is funded (for a while). Now, we need to refer you back to the bipartisan debt deal.

Specifically, what’s written on page six of P.L. 118-5 — the threat of across-the-board cuts come spring. That will hang over endgame funding negotiations over the next few months, and some veteran lawmakers already predict the sequestration cliff raises the odds of a so-called “full-year” continuing resolution, which would keep funding static through next September.

“Looks to me like we're heading toward a year-long CR,” Texas Republican Sen. John Cornyn told us. “That’s still my prediction. That’s not good, but that’s the hand we’ve been dealt.”

There’s still a lot of confusion about how sequestration would be triggered under the debt limit deal, however, and how the odds of a funding patch into September play into that gambit.

Let’s clear up a few questions:

  1. When would the cuts actually happen? Technically, the internal gears that trigger the cuts begin in January if Congress fails to pass all 12 full-year funding bills. But the 1 percent across-the-board funding reductions wouldn’t actually hit federal agencies until April 30, giving lawmakers some runway to avoid that dreaded scenario.
  2. Would a year-long CR still trigger the cuts? The cuts would only happen in April if any part of the government is operating under a short-term continuing resolution “for part of” the fiscal year, the bill text says.

    That much is widely accepted among lawmakers, but whether a stopgap into September counts as a full year is very much a subject of debate. Some members, like Rep. Chip Roy (R-Texas), say such a CR would still trigger the cuts. Prominent Democrats argue the opposite.

    “Happy to have that debate,” Roy told us. “Everybody’s of the belief that it does” still force the cuts.

  3. Do the cuts automatically happen at the shutdown deadlines? No. If Congress fails to pass bills to fund federal programs by Jan. 19 and Feb. 2, the government would shut down, as usual. If lawmakers clear a short-term funding patch beyond April 30 — but not into September — it would set the stage for sequestration to hit the military and every non-defense program covered under the regular appropriations bills.

— Jen Scholtes and Caitlin Emma

 

A message from American Chemistry Council – Chemistry Creates America Competes:

Powering the nation's supply chain, the U.S. business of chemistry drives innovation in semiconductors, energy, healthcare, and more. But urgent action is needed! Already the most heavily regulated sector, America’s chemical industry faces growing regulatory overload. The Biden Administration and Congress must correct course and do a better job understanding the negative impact of additional, unduly restrictive regulations on a fragile supply chain and economy before it’s too late. Learn more – Chemistry Creates, America Competes

 

GOOD EVENING! Welcome to Huddle, the play-by-play guide to all things Capitol Hill, on this Monday, Nov. 27, where we (and Congress) are only now beginning to awake from our turkey comas.

THE RESOLUTIONARY WAR

There’s a race over who can force a vote to expel indicted Rep. George Santos first.

Rep. Robert Garcia (D-Calif.), who led the first unsuccessful expulsion effort against the Long Island Republican earlier this year, said in a statement before Thanksgiving that he intends to file his privileged motion again Tuesday, which a spokesperson confirmed Monday. It follows a damning House Ethics Committee report released this month that found “sufficient evidence” of Santos’ criminal wrongdoing.

Garcia’s motion will force a vote on the Republican’s fate this week.

It might preempt the main Santos expulsion effort by Rep. Michael Guest (R-Miss.), the chair of the Ethics Committee. Guest told POLITICO after the report’s release that he would be filing his own privileged resolution seeking to remove Santos. He filed that motion last week, but has not yet gone through the necessary procedure to force a vote without buy-in from GOP leadership. It’s unclear if he plans to do so on Tuesday.

Several Republicans — even some of those who support expelling Santos — indicated to us that they do not want to vote for a Democratic effort to remove their colleague, however. They want Guest to beat Garcia to the punch, and signaled they would only support a Republican-led resolution. If Garcia’s happens first, that would further muddy the GOP messaging on the matter, as Republicans seek to distance themselves from an embattled colleague however they can.

If all Democrats vote to boot Santos, then about 80 House Republicans would need to come on board to secure the two-thirds threshold for expulsion. Nearly 70 GOP members said ahead of Congress’ return that they plan to or strongly lean towards voting to oust him, according to our team’s whip count.

There’s a sense among House GOP leadership and senior Republicans that Guest’s motion has the votes to pass, despite some reluctance in the conference about setting a precedent of expelling a colleague without a conviction in court. That adds to a strong belief that Santos intends to resign during a press conference he’s called for Thursday.

Speaker Mike Johnson declined to tip his hat on how he’ll handle the Santos situation, noting Monday that there will be ongoing discussions when the House returns Tuesday evening.

“It remains to be seen. I’ve spoken to Congressman Santos at some length over the holiday and talked to him about his options, but we'll have to see. It’s not yet determined, but we'll be talking about that when we get back tomorrow,” Johnson said during an appearance with Rep. Vern Buchanan (R-Fla.) in the Sunshine state.

— Olivia Beavers, with an assist from Nicholas Wu

 

A message from American Chemistry Council – Chemistry Creates America Competes:

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JUDICIARY SUBPOENA MESS CONTINUES

Will the third time be the charm for the Senate Judiciary Committee's Supreme Court subpoenas? It's still unclear.

Senate Judiciary Chair Dick Durbin (D-Ill.) said that long-coming subpoenas for Harlan Crow and Leonard Leo are "still on the table" for the panel’s Thursday's meeting, although Democrats need all their members in the committee to advance the subpoena. Durbin said there is "no evidence" that either Crow or Leo are cooperating. Asked if that meant he will bring up the vote, he said: "We'll see. I'm prepared."

Reminder: The Senate finished its work two weeks ago before the scheduled subpoena vote in committee, kicking the issue past the holiday. That was the second delay; the first came when Republicans piled their own subpoena demands on the committee's Democrats. Sen. Jon Ossoff (D-Ga.) said the committee needed more time to review the GOP subpoenas before holding votes.

— Burgess Everett

 

A message from American Chemistry Council – Chemistry Creates America Competes:

Our nation’s supply chain runs on the U.S. business of chemistry. When chemistry creates, America competes.

Semiconductors, automotive, healthcare, infrastructure, and energy all rely on chemistry. From EV’s to smartphones, America’s chemical manufacturers power innovations we can't live without.

Unfortunately, regulatory overload and lack of coordination between the White House and its agencies is handicapping American chemistry’s ability to create products that support national priorities, jeopardizing the economy and America’s ability to compete with countries like China. This tidal wave of unduly restrictive regulations could disrupt the supply chain for crucial technologies and everyday products.

President Biden and his administration need to understand how vital chemistry is to the supply chain when it comes to making the things America and the world can’t live without. The Biden Administration and Congress must support policies that empower chemistry, promote American innovation, and strengthen U.S. competitiveness. Learn more – Chemistry Creates, America Competes.

 

A CHIEF OF STAFF EYES PROMOTION

There’s been a flood of retirement announcements this month, but Rep. Dan Kildee (D-Mich.) is one of the few in a competitive seat. And the field to replace him is already shaping up.

Kildee’s current chief of staff, Mitchell Rivard, confirmed his interest in representing the Flint-based district in a statement to Huddle.

“Since Congressman Kildee's retirement announcement, I've been surprised and humbled by many people encouraging me to run,” he said. “I'm going to spend time thinking about the best way to give back to the community that has given me so much.”

Michigan State Board of Education President Pamela Pugh has also jumped in the race, announcing Monday she would abandon her bid for an open U.S. Senate seat in favor of seeking Kildee’s House seat.

— Anthony Adragna and Nicholas Wu

HUDDLE HOTDISH

A mega balloon version of Santos will greet House members as they return to the Hill on Tuesday.

Tim Kaine shared his infamous recipe for “creamed onions” with the world.

Sen. Tina Smith is just like the rest of us dealing with TV hits.

The Canadian American Business Council hosted its 29th annual State of The Relationship event on Monday, featuring remarks from former Speaker Paul Ryan, in Ottawa.

QUICK LINKS 

Southern California is a focus for group working to elect Latinos to Congress, via Kaitlyn Schallhorn in The Orange County Register

Businessman accused of bribing Sen. Menendez had deep ties to Egypt, via The Washington Post

Louisiana Congressman Mike Johnson's life has change dramatically as U.S. House speaker, via Greg Hilburn in The Shreveport Times.

Shea's names Rep. Brian Higgins new President and CEO, via WGRZ

 

GROWING IN THE GOLDEN STATE: POLITICO California is growing, reinforcing our role as the indispensable insider source for reporting on politics, policy and power. From the corridors of power in Sacramento and Los Angeles to the players and innovation hubs in Silicon Valley, we're your go-to for navigating the political landscape across the state. Exclusive scoops, essential daily newsletters, unmatched policy reporting and insights — POLITICO California is your key to unlocking Golden State politics. LEARN MORE.

 
 

TRANSITIONS 

Laura Titus is now deputy legislative director for Rep. Robert Aderholt (R-Ala.).

Max Seifert will be joining the American Association of Nurse Anesthesiology as a legislative liaison. He’s been a legislative assistant for Rep. Lloyd Doggett (D-Texas).

TOMORROW IN CONGRESS

The House returns for votes at 6:30 p.m.

The Senate is in session.

 

GET A BACKSTAGE PASS TO COP28 WITH GLOBAL PLAYBOOK: Get insider access to the conference that sets the tone of the global climate agenda with POLITICO's Global Playbook newsletter. Authored by Suzanne Lynch, Global Playbook delivers exclusive, daily insights and comprehensive coverage that will keep you informed about the most crucial climate summit of the year. Dive deep into the critical discussions and developments at COP28 from Nov. 30 to Dec. 12. SUBSCRIBE NOW.

 
 

TUESDAY AROUND THE HILL

4 p.m. Rep. Darin LaHood Hosts “Beyond The SCIF” Panel with the Council on Foreign Relations (Council on Foreign Relations)

5 p.m. Capitol Christmas tree lighting ceremony (West Front, U.S. Capitol)

TRIVIA

FRIDAY’S ANSWER: Max Seifert was first to identify Tina Smith and Amy Klobuchar as the representatives of the largest turkey-producing state (Minnesota).

TODAY’S QUESTION FROM MAX: To whom can the following quote be attributed, and what event preceded this speech: “For there is another kind of violence, slower but just as deadly, destructive as the shot or the bomb in the night. This is the violence of institutions; indifference and inaction and slow decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. This is a slow destruction of a child by hunger, and schools without books and homes without heat in the winter. This is the breaking of a man’s spirit by denying him the chance to stand as a father and as a man among other men. And this too afflicts us all.”

The first person to correctly guess gets a mention in the next edition of Huddle. Send your answers to huddletrivia@politico.com.

GET HUDDLE emailed to your phone each evening.

Follow Daniella on X at @DaniellaMicaela.

 

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