Spending Levels Remain Largely the Same, But Trump Will Receive More Discretion
The “big. beautiful bill” President Trump seeks with large spending and tax cuts will have to wait as House Republicans unveiled a continuing resolution over the weekend to extend current spending levels until September 30.
The 99-page continuing resolution became necessary after House and Senate Republicans failed to agree on a budget deal. Congress must act before Friday at midnight to avert a partial federal government shutdown.
Trump signaled on Truth Social he’s on board with the continuing resolution: “We have to remain UNITED – NO DISSENT – Fight for another day when the timing is right.” House Speaker Mike Johnson and Trump negotiated the continuing resolution. Trump’s vocal support has brought along most Republican fiscal hawks who favor deep spending cuts.
“I am working with the GREAT House Republicans on a Continuing Resolution to fund the Government until September to give us some needed time to work on our Agenda,” Trump wrote on Truth Social. “Conservatives will love this Bill, because it sets us up to cut Taxes and Spending in Reconciliation, all while effectively FREEZING Spending this year.”
Biden Spending Levels Maintained
The irony is that the continuing resolution maintains spending levels agreed to during the Biden administration with Democratic control of the Senate.
The newly proposed continuing resolution provides for an increase in defense spending and $13 billion in spending cuts. Republicans rejected a Democratic proposal to pair increases or decreases in spending for Defense and non-Defense line items. Democrats fear Trump will abuse the expanded discretion in the CR on how funds are spent.
Democrats portray the allowance for discretionary spending as a “power grab for the White House that further allows unchecked billionaire Elon Musk and President Trump to steal from the American people.”
“We cannot back a measure that rips away life-sustaining health care and retirement benefits from everyday Americans as part of the Republican scheme to pay for massive tax cuts for their wealthy donors like Elon Musk. Medicaid is our redline,” House Democratic leaders said.
Washington Democratic Senator Patty Murray, who is the ranking Democrat on Senate Appropriations, described discretionary spending as a “slush fund” for Trump. “Instead of turning the keys over to the Trump administration, Congress should immediately pass a short-term CR to prevent a shutdown and finish work on bipartisan funding bills that invest in families, keep America safe and ensure our constituents have a say in how federal funding is spent,” Murray said in a statement.
Pennsylvania Democratic Senator John Fetterman says he will vote for the continuing resolution, saying, “Never, never, never for a shutdown – ever.”
The Republican plan trims $13 billion in non-defense categories, excluding Social Security, Medicare and Medicaid. Some of the propose spending cuts would affect funding for public defenders in D.C., international peacekeeping, mental health, substance abuse treatment, workforce training and National Institutes of Health research.
The plan would increase funding for veteran health care and defense, and it includes more flexibility for Trump to direct funding, especially for Immigration and Customs Enforcement. Trump’s discretion also is aided by the lack of approved appropriations bills that includes line-item spending.
The continuing resolution doesn’t provide disaster relief resulting from California wildfires or raise the debt limit, which Congress will be forced to do in coming months. Former Treasury Secretary Janet Yellen said the United States technically reached its debt limit in January.
Continuing Resolution Backdrop
Not very far in the background is the chaos of the Elon Musk-led effort to slash federal spending by closing agencies and cutting payroll. The size, scope and speed of the cutbacks has alarmed a large swath of Americans, as reflected by huge, vocal crowds at congressional townhalls.
The population and the stock market has been roiled by the on-and-off tariffs imposed by Trump on Canada, Mexico and China and anticipated retaliatory tariffs. The chaos and prospect of higher prices is having an impact on consumer spending and business investment.
Trump’s sudden, unexplained reversal of U.S. foreign policy toward Ukraine in favor of Russia has deepened existing political divisions.
Division and fear has been stoked by Trump’s actions inside and outside government of people and institutions that he claims have wrongly persecuted or criticized him.
