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GOP scraps government funding bill after Trump demands changes just before deadline

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House Democratic leader calls out GOP for backing out of government funding deal
03:18 - Source: CNN

What we're covering

• Spending bill showdown: House Majority Leader Steve Scalise said tonight that the government funding plan, negotiated by Speaker Mike Johnson a day ago, is officially scrapped after President-elect Donald Trump came out against it. In his criticism, Trump also injected the politically fraught issue of the US debt limit, saying he wanted an increase approved before Inauguration Day.

• Trump’s Cabinet: Key choices for Trump’s Cabinet are back on Capitol Hill this week. His defense secretary pick Pete Hegseth, who Democrats argue is not qualified due to his past behavior, will have a confirmation hearing on January 14.

• Inflation pressure: The Federal Reserve, which cut interest rates today by a quarter point, is banking on higher-than-anticipated inflation after Trump takes office, according to new projections.

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Vance leaves Johnson’s office, saying they had “productive conversation” and that negotiations are continuing

Vice President-elect JD Vance left House Speaker Mike Johnson’s office and told reporters they had a “productive conversation” but said Republicans are still in the middle of negotiations.

Vance left the office with his son.

Vance arrives in Speaker Johnson's office

President-elect JD Vance is now meeting in Speaker Mike Johnson’s office.

Vance earlier joined President-elect Donald Trump in a statement that slammed the bipartisan government spending bill that was unveiled by Johnson on Tuesday night.

The massive spending bill has since been scrapped, according to House Majority Leader Steve Scalise.

GOP scrambles to come up with new bill to fund government after Trump's intervention. Here's what to know

The US Capitol is seen October 9, 2023.

House Majority Leader Steve Scalise confirmed tonight that the current government funding plan that was negotiated by Speaker Mike Johnson is officially scrapped after President-elect Donald Trump came out against it.

Trump and Vice President-elect JD Vance sharply criticized the deal and called on Republicans to increase the debt limit as part of the negotiations to keep the government running.

No more announcements are expected from Capitol Hill tonight as GOP leaders scramble to negotiate a fresh deal before the Saturday deadline.

Here’s the latest on the government funding bill:

  • What was in the proposed bill: Lawmakers unveiled the massive spending bill Tuesday for government funding through March 14. The bill included nearly $100 billion in disaster relief and another $10 billion in economic assistance for farmers. It also gave lawmakers their first raise since 2009. If passed by both the House and the Senate, the bill would have averted a government shutdown before funding runs out on Saturday.
  • What Trump’s circle said: In a statement, Trump and Vance said Congress should pass “a streamlined spending bill that doesn’t give Chuck Schumer and the Democrats everything they want.” Vance later said Trump would support a clean spending bill only if it’s tied to a debt limit increase. Earlier, Trump ally Elon Musk used his X platform to threaten Congressional Republicans who vote for the stop-gap spending bill. He urged people to call their representatives and Johnson.
  • What happens next: Johnson and his leadership team are now weighing how to pare back the spending bill without jeopardizing Democratic support, sources said. House Democratic leadership also met to discuss next steps. Aides and members alike are warning that members are not going to be very open to backing a different package after lengthy negotiations and the bill’s release last night.
  • What other lawmakers are saying: Rep. Robert Aderholt, a senior member of the House Appropriations Committee, said it would be “very difficult” to pass a debt limit measure before the deadline. Incoming Senate Appropriations Committee Chair Susan Collins said she was surprised by Trump’s debt ceiling increase demand.

Here were other developments today:

  • Matt Gaetz report: The House Ethics Committee secretly voted earlier this month to release its report into the conduct of former Rep. Matt Gaetz before the end of this Congress, according to multiple sources with knowledge of the matter. Gaetz conceded that his behavior that is at the center of the report was “embarrassing, though not criminal.”
  • Liz Cheney: Wrapping up their own investigation on the January 6, 2021 US Capitol attack, House Republicans concluded GOP former Rep. Liz Cheney should be prosecuted for probing what happened when Trump sent his mob of supporters as Congress was certifying the 2020 election. But, the threat of criminal investigation has struck a nerve with some Republicans who are struggling with their party’s appetite to carry out Trump’s vow for revenge.
  • Trump administration picks: A group of Democrats on the Senate Armed Services Committee argued in a letter that allegations against Pete Hegseth should disqualify him from serving as the next defense secretary. His Senate confirmation hearing has been set for January 14, GOP Sen. Roger Wicker said. Secretary of State Antony Blinken met with Sen. Marco Rubio, Trump’s pick to be the top US diplomat’s successor, the State Department said.
  • Fate of TikTok: The Supreme Court agreed to decide whether a controversial ban on the social media app TikTok violates the First Amendment. The law — which is set to go into effect January 19 — came in response to concern that TikTok’s Chinese parent company poses a national security risk. Congress has said the app could still operate in the US if it divests from Chinese ownership.

"There’s a group of us trying our best to find a way out of the mess," GOP Rep. Steve Womack says

No updates are expected tonight as Capitol Hill leaders work to negotiate a deal on government funding before the deadline.

House Speaker Mike Johnson is not expected to make any announcements tonight.

“Look, there’s a group of us trying our best to find a way out of the mess, and we’re offering solutions that we think are viable, and ultimately, it’ll be up to the speaker, and we respect that,” senior appropriator GOP Rep. Steve Womack told CNN. “Debt ceiling will be one of the things that we’re negotiating.”

White House blasts Republicans, including Trump and Vance, for "playing politics" on government funding deal

The White House blasted Republicans Wednesday evening — including President-elect Donald Trump and Vice-President-elect JD Vance — for “playing politics” over the government funding deal.

Trump and Vance are demanding lawmakers tie the debt limit to government funding, dramatically increasing the chances of a shutdown.

In a joint statement earlier Wednesday, Trump and Vance called for Republicans in Congress to “pass a streamlined spending bill that doesn’t give Chuck Schumer and the Democrats everything they want,” with Trump later warning any Republican who backed the proposal “should, and will, be Primaried.”

Biden, who’s been in Wilmington, Delaware to mark the 52nd anniversary of the December car crash that killed his wife and daughter, has yet to weigh in himself on the issue.

Democratic senators blame Musk and Republicans for funding deal collapse

Elon Musk attends the America First Policy Institute gala at Mar-A-Lago in Palm Beach, Florida, on November 14.

Democratic senators railed against House Republicans and Elon Musk for the collapse of a stop gap funding deal that included disaster aid, and expressed concern about how Musk’s influence will affect Congress’s ability to govern over the next four years.

Sen. Bob Casey, who lost his re-election bid, called the package’s implosion “bizarre, disturbing, and dangerous.”

He acknowledged that “a lot can happen in 48 hours,” and they still may be able to avert a shutdown, but warned that Musk’s influence will pose a challenge for lawmakers going forward.

“Just the fact they’re even talking about this because of a comment by one person that triggers this kind of result, it doesn’t bode well for the new Congress or the new administration,” he said.

Casey continued, “they’re not going to be able to operate in the manner that we would hope a majority in the House and the Senate and administration would operate, if they’re going to operate based upon the, you know, a puppet master.”

Senator Ben Ray Luján agreed.

“If anyone has any questions as to why the American people are facing a shutdown, they should ask my House Republican colleagues as to what just happened,” he said. “Maybe they can ask the person that posted this on his social media feed and the company that he owns.”

Luján added that he believes they are headed toward a shutdown.

Tillis and Graham stress urgent need for disaster relief in government spending bill

GOP Sens. Tom Tillis of North Carolina and Sen. Lindsey Graham of South Carolina stressed the importance of having disaster relief included as part of a bill to avert a government shutdown.

Tillis said Vice President-elect JD Vance understands that.

Tillis and Vance recently toured disaster damage in North Carolina together.

Graham threw cold water on the idea that disaster relief is “pork,” or excess spending.

Speaking to the reality of tackling a debt limit increase, Tillis said he isn’t opposed to the idea, but doesn’t see why Majority Leader Chuck Schumer would be on board with that plan.

On the debt limit increase, Graham said, “I don’t know how this plays into things. I do know this, we don’t want to default. There are a lot of Republicans who never vote to raise the debt ceiling for ideological reasons. So that means you’ve got to get Democrats, and that will be a negotiation.”

Some background: The funding bill that was unveiled Tuesday contained nearly $100 billion in disaster aid and $10 billion more in banking relief for farmers in rural communities.

GOP Sen. Cramer says he is frustrated with Trump’s team for “not having engaged sooner" on spending talks

Republican Sen. Kevin Cramer of North Dakota said he’s “very frustrated” with the year-end spending bill coming to a halt in the House under pressure on Speaker Mike Johnson from President-elect Donald Trump and GOP hardliners.

It “would have been very helpful” for Trump to make his demands clear sooner, Cramer said. “Maybe he hadn’t thought about it until just today, but yeah, that would have been very helpful.”

The senator added: “I understand why he wants to raise the debt ceiling now, rather than later. It’s going to be harder later.”

GOP Sen. Rick Scott says there’s “absolutely” time to address debt limit as shutdown looms

Sen. Rick Scott speaks at a news conference on Capitol Hill in Washington, DC, on December 18.

While some GOP lawmakers point out how difficult it would be to quickly reach a debt limit deal, Republican Sen. Rick Scott of Florida said there’s “absolutely” time to deal with the debt limit just two days before a shutdown deadline.

Scott said he would not be comfortable with disaster relief being stripped out of the funding package, but added that disaster aid should “have been a separate bill all along.”

Meanwhile, Independent Sen. Joe Manchin said “it’s a shame” when asked for his view on the current situation and potential that the government could shutdown as the original plan to fund the government collapses.

Manchin argued that the House “is tied in knots” because of how small the majority’s margins are. “The place has to change,” he said, so that the “Speaker’s not threatened every minute of every day with everything that he does.”

House Democrats will caucus in the morning, aide says

House Democrats plan to caucus in the morning, according to a senior Democratic aide.

House majority leader confirms current funding plan is dead, but no new agreement has been reached

House Majority Leader Steve Scalise confirmed that the current government funding plan is officially scrapped after President-elect Donald Trump came out against it, but Republicans have still not come up with a plan B.

“Yes” Scalise said when asked if the plan that was released on Tuesday has been tossed out.

Scalise said a new agreement has not been reached and confirmed Republicans are still discussing how to tie debt limit increase to government funding, in response to Trump’s last-minute demands.

“Obviously, there’s still a lot of negotiations and conversations going on, but there’s no new agreement,” Scalise said.

Asked if the new deal had a debt limit increase, Scalise said “there is no new agreement right now, just obviously looking at a number of options.”

“We’ve been having some conversations about the debt limit, as relates to the CR. So, you know those are ongoing conversations,” he added.

Scalise said he has not spoken to Trump directly today.

Senate Democrats say they are committed to the deal they struck on the spending bill

While House Republicans go back to the drawing board after President-elect Donald Trump came out against their end-of-year spending deal, Senate Democrats are committing — for now — to stick with the deal they struck saying that there is an agreement and it’s time to vote.

Democrats were seen in a massive huddle on the Senate floor for several minutes, after which Sen. Chris Coons said he echoed to CNN what Majority Leader Chuck Schumer said in the gathering: “We have a deal and we’re sticking with it.”

“We have an agreement they just need to stick to the agreement,” said Democratic Sen. Brian Schatz of Hawaii.

It all adds up to a dramatic escalation in the span of a few hours just as lawmakers were eyeing their holiday exits.

Democratic Whip Dick Durbin said all they needed to do was to vote on the agreement in hand.

House Democratic leadership also met earlier this evening and House Minority Leader Hakeem Jeffries signaled in a statement on X that Republicans should honor the hard-fought agreement released last night.

GOP Sen. Josh Hawley says Trump told him that he was blindsided by the House Speaker's spending deal

Sen. Josh Hawley speaks during a Senate Homeland Security and Governmental Affairs Committee hearing on Capitol Hill in Washington, DC, on December 5.

Sen. Josh Hawley said he spoke with Donald Trump tonight and the President-elect told him that he was blindsided by House Speaker Mike Johnson’s government spending deal with Democrats.

The speaker’s allies say he has been in touch with the Trump team throughout the process.

Trump is “just learning about it … he’s just reading about it,” Hawley said, adding that Trump called the deal “horrible.”

Hawley took a swipe at Johnson too.

“How’s he going to manage reconciliation if he can’t manage the CR? This is easy,” he said, referring to the fast-track budget process they plan to employ to enact their agenda.

There's some GOP pushback to Trump’s last-minute play on raising the debt limit

As President-elect Donald Trump makes an 11th-hour play for Republicans to tie the debt limit to government funding, some Republicans are pushing back.

Injecting the politically fraught issue of the US debt limit – which the country is on track to hit after it is reinstated in the new year – two days before the government is set to run out of funding has presented lawmakers with a daunting task and dramatically increased the chances of a shutdown.

Here’s what some Republicans are saying:

  • Incoming Senate Appropriations Committee Chair Susan Collins of Maine said she was surprised by Trump’s demand to pass a debt ceiling increase as part of year-end negotiations over a government funding package. “I don’t know his rationale,” she said.
  • As Collins was walking with reporters, she came across outgoing Republican Leader Sen. Mitch McConnell of Kentucky who quipped, “Oh, this is the way it’s going to be next year.”
  • House Armed Services chair Mike Rogers of Alabama said he didn’t support tying the debt limit to government funding, adding, “it’s complicated enough without that.”
  • GOP Sen. Kevin Cramer of North Dakota balked at the timeline, telling CNN, “I would not think so” when asked if Republicans could accomplish this in two days.
  • Rep. Robert Aderholt of Alabama, a senior member of the House Appropriations Committee, said it would be “very difficult” to pass a debt limit measure before the Dec. 20 funding deadline, as Trump and Vance have demanded. Asked if a debt limit increase would be easy to pass in two days, Aderholt said: “I doubt it. I think it would be very difficult, but if President Trump wants it, I think we should maybe look at it. It’s gonna be on his watch so we need to look at it.”
  • GOP Sen. Mike Rounds of South Dakota added a dose of skepticism, telling CNN, “I’m open to ideas on it but I’m not sure how we do that.”

Sen. John Kennedy says clean continuing resolution and disaster aid is the way to pass funding bill

Sen. John Kennedy of Louisiana said he believes the key to passing government funding is through a clean continuing resolution attached to disaster recovery aid — and said President-elect Donald Trump needs to work the phones to round up the “free-range chickens” in the Republican House.

Earlier, Vice President-elect JD Vance said he and Trump would only support a clean continuing resolution if it’s attached to a debt limit increase.

“I don’t think he’s wrong, but, but it complicates the matter,” Kennedy said.

“We’ve got to stop worrying about who needs to pay more in taxes, and start asking, what the hell happened to all the money?” he said.

“I wouldn’t bet my house on it,” Kennedy said when asked if he believes the government will shut down.

“If Mr. Jeffries sticks to his guns in the House and there are no Democratic votes, then in order to pass the CR, the speaker is going to have to use have all Republican votes. And, as I just said, I mean, he’s going to need help rounding up those free-range chickens,” Kennedy said.

Trump threatens any Republican who doesn't address debt limit before his inauguration "will be Primaried"

President-elect Donald Trump in a Truth Social post Wednesday threatened that any Republican who does address the debt ceiling limit before his inauguration “should, and will, be Primaried.”

Some background: Trump and Vice President-elect JD Vance earlier on Wednesday had slammed the government funding bill, which was negotiated by Republican Speaker Mike Johnson for including what they see as Democratic priorities while also injecting the politically fraught issue of the US debt limit, which the country is on track to hit after it is reinstated in the new year.

The last-minute grenade just days from the shutdown deadline — after a bipartisan deal had already been reached — dramatically increases the risks of a shutdown on Capitol Hill. Top Democrats quickly signaled that they would be unwilling to go along with Trump’s new calls for a “streamlined” spending deal that rips out billions of dollars in policies that House Minority Leader Hakeem Jeffries had already negotiated with Johnson.

Trump continues to slam continuing resolution

President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket in Brownsville, Texas, on November 19.

President-elect Donald Trump is further slamming the continuing resolution put forward by House Speaker Mike Johnson, saying he “will fight ‘till the end.”

Trump wants congressional Republicans to address the debt ceiling ASAP. Here’s what that means

President-elect Donald Trump has blown up the carefully negotiated, bipartisan government funding package by demanding that congressional Republicans increase the debt ceiling as part of the measure. He slammed GOP lawmakers for having agreed to a deal in 2023 that suspended the debt limit until January.

Here’s what Trump is talking about:

  • The debt ceiling, which was suspended by the bipartisan Fiscal Responsibility Act in June 2023, will return on January 2. The Treasury Department will then have to use the cash it has on hand, as well as so-called extraordinary measures, to continue paying the nation’s bills on time and in full.
  • The 2023 deal took months to craft and brought the nation uncomfortably close to its first-ever default, which would have unleashed global economic chaos and had major consequences on many Americans’ finances.
  • Even though the GOP will control Congress and the White House next year, addressing the debt ceiling will add another complicated issue to their already-full plate.
  • Established by Congress, the debt ceiling is the maximum amount the federal government can borrow to finance obligations that lawmakers and presidents have already approved. Treasury needs to borrow to pay the bills since the US spends more than it collects in revenue, resulting in a budget deficit.
  • The nation’s debt currently stands at $36.2 trillion.

Susan Collins says she was surprised by Trump's demand to include debt ceiling increase

Sen. Susan Collins is seen after the senate luncheon at the US Capitol on November 28, 2023.

Incoming Senate Appropriations Committee Chair Susan Collins said she was surprised by President-elect Donald Trump’s demand to pass a debt ceiling increase as part of year-end negotiations over a government funding package.

As Collins was walking with reporters, she came across outgoing Republican Leader Mitch McConnell who quipped, “Oh, this is the way it’s going to be next year.”

He otherwise declined to comment on Trump’s unexpected late move to oppose the government funding bill.

Republican Sen. Lisa Murkowski of Alaska said she hoped House leaders could figure out a continuing resolution that could quickly pass.

Asked if she was disappointed by the development a week before Christmas, she said, “I’m hoping to get things wrapped up here. We got to wrap quick.”

Debt limit deal would be "very difficult" in 2 days, senior GOP member of appropriations committee says

Rep. Robert Aderholt of Alabama, a senior member of the House Appropriations Committee, said it would be “very difficult” to pass a debt limit measure before the December 20 funding deadline, as President-elect Donald Trump and Vice President-elect JD Vance have demanded.