Republicans begin funding fight veering in opposite directions

IN THIS EDITION

GOP heading in different directions as funding fight begins

Senate map grows increasingly pricey for GOP

Inside the dual-headed discharge push

Democrats to target Vought in appropriations markup

THE TOP

GOP heading in different directions as funding fight begins

Happy Wednesday morning.

The most high-wire month on the legislative calendar is off to a rough start for Republicans.

Government funding will run out in 28 days. And the Republican trifecta that controls Washington is pursuing three different strategies at the moment.

Senate Republicans are doubling down on bipartisan funding bills that call for tens of billions of dollars more in spending than House Republicans — or the White House — have proposed.

House Republicans seem to be gravitating toward a stopgap funding resolution that would keep the federal government funded through mid-November, giving Hill leaders and the White House more time to find a FY2026 spending deal – if possible.

But the White House isn’t interested in a short-term funding patch.

Instead, administration officials want to fund federal agencies until the first quarter of 2026, according to administration sources involved in the talks. This would avoid repeated shutdown deadline dramas. Yet it also opens the door to a year-long continuing resolution — something House and Senate appropriators desperately want to avoid.

All this comes as President Donald Trump infuriated Democrats and some top Senate Republicans by issuing a “pocket rescission” of nearly $5 billion in congressionally appropriated foreign aid.

We wrote Tuesday morning that Democrats need to find a coherent strategy and pursue it as a unified entity. But it’s clear Republicans need to get on the same page as well — and quickly.

All that really matters for Republicans is that Trump, Speaker Mike Johnson and Senate Majority Leader John Thune are aligned closer to the Sept. 30 deadline. The diverging strategies at this stage are a reflection of just how difficult it will be for all three to get on the same page — and whether they can shift the blame to Democrats if there’s a shutdown.

The Senate. Thune wants the FY2026 funding process to be as bipartisan as possible, believing he can make Senate Minority Leader Chuck Schumer and Democrats look unreasonable if they refuse to provide the votes needed to avert a shutdown.

“If the Democrats are interested in funding the government, we’re going to give them every opportunity to do that,” Thune told us, adding that he plans to put more funding bills on the floor this month. “[We want to] pass bills in a way that reflects the priorities of the Senate.”

But the pocket rescissions controversy has left Thune in an uncomfortable spot.

The South Dakota Republican ran for his job on a promise to revive the chamber’s historically bipartisan appropriations process. Thune’s steadfast defense of the filibuster means Democratic votes are needed to fund the government.

The Senate passed a three-bill minibus before leaving for the August recess, but the pocket rescissions uproar means that keeping Democrats at the table will be a challenge.

“I think it can give Democrats a reason not to work with us on a bipartisan appropriations bill. That’s got me concerned,” Sen. Mike Rounds (R-S.D.), an Appropriations Committee member, said of the pocket rescissions effort. “We’re going to do whatever we can to get this thing through this year. We’re committed to it.”

Meanwhile, Senate Appropriations Committee Chair Susan Collins (R-Maine) says the pocket rescission is flat-out illegal, adding that her chief counsel is looking into potential legal avenues to challenge the move.

Thune said he spoke with Collins and reaffirmed their commitment to a bipartisan appropriations process. But it won’t get easier.

The Senate Appropriations Committee is slated to mark up the State Department-Foreign Operations and Homeland Security funding bills next week. The former will be difficult because of the fact that the pocket rescission targets foreign aid, while the latter is typically the most contentious funding bill, given the immigration and border security elements.

The House. Johnson will meet today with House Appropriations Committee Chair Tom Cole (R-Okla.). Cole told us Tuesday that he was eyeing a short-term CR until sometime between Nov. 6 and Thanksgiving. That stopgap bill, according to Cole, would ride with the MilCon-VA, Agriculture and Legislative Branch spending bills.

“I would not want to go all the way to December,” Cole said. “I don’t want a long-term CR.”

However, the White House views a CR to early 2026 as the best path forward. Their thinking is that a CR into November or December would force Congress into a series of stopgap bills while lawmakers wrestle with a larger, full-year spending deal. Administration officials think that setting a deadline next year would give Congress some breathing room to clinch an agreement without a rolling set of deadlines.

Johnson has internally discussed a stopgap that would expire in November or December, but he hasn’t made a firm decision on which path he’ll pursue.

“I have heard different views on that,” Johnson told us. “What matters is how many votes I can collect for which time period. So we’ll figure that out. I need about two days to do that.”

The issue also came up during a call Johnson had last week with House Minority Leader Hakeem Jeffries. While Johnson described the call as productive, Jeffries won’t commit to supporting any funding bill unless there’s a bipartisan deal first.

— Andrew Desiderio, Jake Sherman, John Bresnahan, Max Cohen and Samantha Handler

Punchbowl News Events! Join us on Thursday, Sept. 4, at 9 a.m. ET as we discuss news of the day and workforce innovation with Secretary of Labor Lori Chavez-DeRemer. We’ll dive into the built environment as well. This conversation will be a part of Elevate 2025, and attendees are welcome to stay for the full event. Save your spot now!

THE SENATE

Senate map grows increasingly pricey for GOP

Republicans’ battle to keep the Senate majority is growing more expensive by the day.

The Senate map still strongly favors the GOP. That hasn’t changed. But intense Democratic recruiting, brutal Republican primaries and retirements are proving costly for party leaders, nudging once-safe red states into play.

Sen. Joni Ernst’s (R-Iowa) announcement Tuesday that she won’t seek reelection in 2026 is the latest twist. Ernst had been telegraphing the move for months, so it wasn’t surprising. Republicans also quickly landed a top-tier replacement in Rep. Ashley Hinson (R-Iowa). But they’re still left without an incumbent in a state Democrats plan to heavily target.

“There’s a pretty good succession plan underway right now in Iowa. I think Iowa’s going to be fine. But none of these races are ever easy,” said Sen. Steve Daines (R-Mont.), who chaired the NRSC during the 2024 cycle.

Yet consider what’s happened to the Senate landscape over the last few months, all of which have boosted the price tag for defending the GOP’s Senate majority.

In April, Texas Attorney General Ken Paxton launched a challenge against Sen. John Cornyn (R-Texas), forcing the Senate GOP establishment to embark on a rescue mission that could cost as much as $70 million for the primary alone. If Paxton wins the primary, Senate Republicans estimate the cost for the race could balloon to $200 million.

“It would be money that could and should be spent on Georgia, Michigan and New Hampshire, among other places,” Cornyn said of a scenario where Paxton won the primary.

In May, the Senate Republicans failed to persuade Georgia GOP Gov. Brian Kemp to take on Sen. Jon Ossoff (D-Ga.). Kemp, a popular sitting governor and an impressive fundraiser, is best positioned to compete financially with Ossoff, who raised more than $21 million in the first six months of 2025.

In June, Sen. Thom Tillis (R-N.C.) declared he wouldn’t seek reelection, depriving his party of a well-funded incumbent. By the end of July, Democrats landed their dream recruit, former Gov. Roy Cooper, who raised $3.4 million in the first 24 hours.

In August, former Sen. Sherrod Brown (D-Ohio) launched a comeback bid against Sen. Jon Husted (R-Ohio). Brown faces a tough path back in a state that’s been quickly trending red, but his candidacy ensures the race will be costly for the GOP. Brown raised $3.6 million in his first 24 hours.

That brings us to September and Ernst bowing out.

“An open seat in Iowa is just the latest example of Democrats expanding the senatorial map,” Senate Majority PAC spokesperson Lauren French said after Ernst’s announcement.

The GOP response. Republicans contend they’ve always been prepared for a pricey 2026 cycle. Back in February, we reported how the NRSC urged incumbents in red states to aggressively fundraise to put races to bed early.

During that Palm Beach retreat, NRSC Chair Tim Scott warned donors there that the cycle could break spending records.

Things look promising for Republicans in Michigan, another open seat. The GOP is already aligned behind former Republican Rep. Mike Rogers (Mich.), while Democrats are sparring in an increasingly messy primary. Democrats also have crowded primary fields in Iowa and Maine.

— Ally Mutnick, Andrew Desiderio and Max Cohen

HOUSE LEADERSHIP

Inside the dual-headed discharge push

Discharge petitions are, generally speaking, a speaker’s worst nightmare. A disaffected group of members of the majority band with the minority to force a vote on an issue that House leaders from the party in power are ignoring.

Speaker Mike Johnson has two live discharge petitions at the moment, a headache that is, in many respects, a challenge to his stewardship of the House.

Rep. Thomas Massie (R-Ky.) dropped the first discharge petition Tuesday, a measure aimed at forcing the release of the Epstein files – any Justice Department or FBI documents relating to the case of disgraced financier Jeffrey Epstein.

The other discharge petition hasn’t been filed yet. But Rep. Anna Paulina Luna (R-Fla.) is threatening to file a petition unless Johnson puts legislation on the floor to ban stock trading by members of Congress.

Both efforts present problems – and opportunities – for the GOP leadership.

Epstein. The Epstein mess is truly a political disaster of Republicans’ own making. And now they’re working feverishly to undo it.

Massie’s discharge petition already has 134 signatures, all of which are Democrats besides Massie and Reps. Nancy Mace (R-S.C.), Lauren Boebert (R-Colo.) and Marjorie Taylor Greene (R-Ga.). Luna said Tuesday she’s open to signing it.

If Luna follows through, just one more Republican would be needed to force a vote, provided all 212 Democrats sign on. Massie was working on Reps. Eric Burlison (R-Mo.) and Victoria Spartz (R-Ind.) toward the end of the Tuesday evening vote series on the House floor.

The White House is already whipping against the petition. Trump administration officials are telling Republican lawmakers that it would be premature to sign the discharge petition, given that the House Oversight Committee is in the middle of its Epstein investigation. The Oversight panel released tens of thousands of pages of Epstein documents Tuesday, although many of these had already been public.

Given Trump’s grip on the party, we’re not sure that the Massie petition will get the requisite signatures. But Massie is in the driver’s seat at the moment and has Johnson and the White House working overtime to prevent a major embarrassment.

There’s a news conference with Epstein victims at 10:30 a.m. today. That will only increase the pressure on party leaders and the White House.

Stock trading. This has been a long-running issue that several speakers, including Nancy Pelosi and Kevin McCarthy, punted on.

Luna’s view is that the GOP leadership needs to put a bipartisan bill to ban stock trading on the floor next week. We caught up with House Majority Leader Steve Scalise Tuesday on this issue. It didn’t sound like a bill was imminent.

If Luna isn’t satisfied with the leadership, she’ll file this discharge petition. Technically, the Luna petition seeks to put a rule on the floor for a vote.

But the proposed stock-trading ban that Luna wants to enact is very strict, forcing members to dump all their stocks within 180 days of the bill being passed and exit “complex” investments such as hedge funds within two years.

Spouses and dependent children would also be covered by the ban. The Justice Department or a special counsel could initiate a civil action against lawmakers who violate the ban.

The takeaway. Discharge petitions are rarely successful. The reason they’re a real threat to GOP leaders during this Congress is because of the tight margins. So this is a clarion call to Johnson that there’s frustration with how he’s managing legislation.

– Jake Sherman

APPROPS LATEST

Democrats to target Vought in appropriations markup

Furious over “pocket rescissions” and the White House impounding billions of dollars in congressionally approved funding, House Democrats are taking a direct shot at OMB Director Russ Vought.

House Appropriations Democrats will offer an amendment during the FY2026 Financial Services and General Government markup this morning that seeks to rein in Vought’s power. The amendment would create an inspector general for OMB to subject the agency to independent oversight.

The amendment won’t become law, yet it shows how upset House Democrats are with Vought, who is spearheading the Trump administration’s effort to seize control of the power of the purse from what they see as a wasteful and profligate Congress.

“At every turn Russ Vought has fought to centralize power for himself, steal enacted funding from other cabinet secretaries, and ultimately to keep promised investments from American taxpayers,” House Appropriations Committee ranking member Rosa DeLauro (D-Conn.) said.

“[OMB] plays a central role in shaping federal budgets and regulatory policy, yet it lacks a dedicated watchdog. It is not subject to the same independent oversight that applies to the rest of government — including agencies with far narrower missions and far less influence.”

House Democratic aides note that Rules Committee Chair Virginia Foxx (R-N.C.) and some GOP appropriators had previously supported a proposal calling for an OMB IG during President Joe Biden’s administration.

Democrats also plan to offer amendments to restore IRS funding and the IRS Free File program.

The FSGG bill is one of the few contentious appropriations markups House lawmakers have left on their agenda. The FY2026 Labor-HHS spending bill is also expected to go to the full committee soon, and that will be a bruising battle as well.

House Republicans approved steep cuts to health, labor and education agencies on Tuesday night during a party-line vote in the Labor-HHS subcommittee. The bill is the largest non-defense spending legislation. House GOP appropriators – in line with the White House’s view – would cut spending by nearly $24 billion from FY2025, a huge reduction.

House Republicans got rid of programs completely. The bill would wipe out CDC programs that prevent HIV/AIDs, eliminate the Corporation for Public Broadcasting and block funding for Planned Parenthood health centers. AmeriCorps, the federal national service agency, would be renamed the “America First Corps,” and Pell Grants would be renamed to “Trump Grants.”

– Samantha Handler and John Bresnahan

AND THERE’S MORE…

Maine Senate race. Brewery owner Dan Kleban is running in Maine’s Democratic Senate primary. Kleban’s launch video focuses on his work starting Maine Beer Co. and attacks Sen. Susan Collins (R-Maine) for being a “career politician.”

Kleban joins a crowded primary field featuring oyster farmer Graham Platner and Jordan Wood, former Rep. Katie Porter’s (D-Calif.) ex-chief of staff. Democrats are also waiting on Gov. Janet Mills to make her decision on whether to run.

Recruitment Watch. Republican state Rep. John Lujan is launching a bid for the new Texas 35th District, a Trump +10 seat created in the recent redistricting. Lujan is a former San Antonio firefighter who won a blue statehouse seat in a 2021 special election.

Iowa state Rep. Shannon Lundgren, a Republican, is considering a run to replace GOP Rep. Ashley Hinson in the state’s 2nd District. Hinson is running for retiring Sen. Joni Ernst’s (R-Iowa) seat.

Democratic San Diego City Councilmember Marni von Wilpert is running in California’s potential newly drawn 48th District. This seat is currently occupied by Rep. Darrell Issa (R-Calif.) but would shift blue under the proposed new maps.

Endorsement: New Politics, an organization dedicated to electing lawmakers with a history of service, is endorsing Kishla Askins in the Democratic primary in Nebraska’s open 2nd District. Askins is a retired naval officer seeking to fill retiring Rep. Don Bacon’s (R-Neb.) Omaha-area seat.

Transitions. Lydia Hall will be the national press secretary and director of battleground communications for the Congressional Leadership Fund and its sister nonprofit, American Action Network. Hall previously served as communications director for Sen. Mike Rounds (R-S.D.).

— Max Cohen and Ally Mutnick

MOMENTS

CLIPS