Remember when congressional leaders said the CR would be out by now? Us too.
Federal agencies run out of money at midnight on Friday night, and as of now, there’s no text available for a funding bill needed to avert a shutdown.
Congressional leaders spent the day wrangling over the farm bill extension and other key elements of the CR. One of the most difficult issues to solve has been a direct payment program to farmers. As we explained in Monday’s edition, Speaker Mike Johnson disagreed with the way the program was funded, leading to a scramble to get the package into shape. Democrats have Johnson in a corner and are demanding all sorts of policies in return.
There had been widespread anticipation that a CR package would be unveiled Monday afternoon, meaning Congress had an outside shot of going home on Thursday.
But as the day wore on, it became clear that no agreement was going to be released. With Johnson adamant that he’ll honor the 72-hour rule, that pushes a House vote into Thursday night. Meaning the Senate may not vote until Friday or even Saturday. That’s right up against the shutdown deadline, although OMB always gives Congress and the White House leeway for weekend maneuvers.
Johnson has continued to insist that a deal was expected shortly, even when it was clear it wasn’t. Johnson said last week a bill would be released Sunday. On Monday morning, the speaker said the text would be out within an hour. None of this came to fruition. Yet Johnson is nothing if not endlessly upbeat.
We caught Johnson on his way out of the Capitol Monday night. The speaker was carrying what appeared to be a box of holiday desserts. Johnson told us he thought the CR text would be out imminently.
“I think we’re very close to the drafting process right now,” Johnson said. Of course, the drafting could take a day to finish.
Johnson also made his pitch to the House Freedom Caucus on Monday night. HFC members were unhappy with the process of crafting the CR package and laid into Johnson over both his plan and the delay in releasing text, according to several sources. Johnson was asked by one HFC member what Democrats got in the bill. He dodged the question, according to sources in the room.
Spoiler alert: Democrats got a bunch of stuff because Republicans are relying on them to vote for the bill.
Here’s what we do know: The CR will run until March 14, House Appropriations Committee Chair Tom Cole (R-Okla.) told us. That gives Hill leaders and incoming President-elect Donald Trump time to reach an agreement on the FY2025 spending bills before the automatic sequester kicks in during April. Those cuts are mandated under the 2023 Fiscal Responsibility Act, the brainchild of President Joe Biden and former Speaker Kevin McCarthy. The cuts would run into the tens of billions of dollars for defense and non-defense if they’re not turned off first.
The CR package will also contain a health care component that we first told you about on Friday. One provision would require PBMs to pass through 100% of rebates to health plans. That would mean patients would see lower drug costs. Other PBM-related provisions would boost transparency in pricing. Reauthorization of the opioid-fighting SUPPORT Act, Medicare telehealth flexibility extensions and an extension of the Pandemic and All-Hazards Preparedness Act would all be addressed.
House Republicans are expected to discuss the CR this morning at their weekly conference meeting. If Johnson doesn’t have the bill out by the 9 a.m. meeting, the GOP leadership will catch a lot of flack. Top House Republicans point out that those members who complain about the short turnaround between a bill’s release and a floor vote are usually the ones who vote no anyway.
Democrats debate. This morning’s Democratic Caucus meeting will feature a fascinating moment: 74-year-old Rep. Gerry Connolly (Va.) will face off against 35-year-old Rep. Alexandria Ocasio-Cortez (N.Y.) over who’ll be the top Democrat on the House Oversight Committee next year.
Connolly won the backing of the Democratic Steering and Policy Committee on Monday, but AOC thinks she can win a full caucus vote. There’s precedent for this; Rep. Frank Pallone (D-N.J.) defeated Rep. Anna Eshoo (D-Calif.) for the ranking member spot on Energy and Commerce a decade ago under similar circumstances.
Reps. Gregory Meeks (D-N.Y.), Jennifer McClellan (D-Va.) and Linda Sánchez (D-Calif.) will speak on Connolly’s behalf. The Connolly camp feels good about where they are.
For her part, AOC’s allies feel she’ll fare better in the broader Democratic Caucus than in Steering. Connolly won that vote 34-27, which is closer than some had anticipated. Reps. Pat Ryan (D-N.Y.), Nydia Velázquez (D-N.Y.) and Robert Garcia (D-Calif.) will be AOC’s speakers.
The Connolly-AOC matchup is the latest in Democrat-on-Democrat committee challenges during the post-election period. It’s been a generational war, and the younger members are winning.
Democrats chose Rep. Angie Craig (D-Minn.) to replace ailing Rep. David Scott (D-Ga.) at the Agriculture Committee on Monday, although Rep. Jim Costa (D-Calif.) will try to supplant Craig in the full caucus. Rep. Jamie Raskin (D-Md.) will replace Rep. Jerry Nadler (D-N.Y.) at the Judiciary Committee, while Rep. Jared Huffman (D-Calif.) will take over for Rep. Raúl Grijalva (D-Ariz.) at Natural Resources.
