Speaker McCarthy Confronts Limited Alternatives to Avert Shutdown Amid Conservative Opposition to Recent Proposal

Speaker Kevin McCarthy is fast approaching a dead end in his efforts to avert a federal government shutdown, as even stringent border security provisions failed to satisfy the ultra-conservative faction within his Republican majority in the House of Representatives.

McCarthy informed his Republican caucus that they should anticipate working through the weekend to pass an interim funding measure, known as a continuing resolution, to keep governmental operations running beyond the September 30 deadline. However, many within the party are already steeling themselves for the political repercussions of a possible shutdown.

Despite the narrowing window, McCarthy remained optimistic in his public remarks. “The deadline is not today; there’s still a significant period left,” he stated to the press at the Capitol.

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While McCarthy dismissed the notion of collaborating with Democrats on annual spending bills, he insisted that viable solutions were still emerging from his own party.

On Sunday evening, House Republicans, in collaboration between the hard-right House Freedom Caucus and the more pragmatic Main Street Caucus, proposed a Thursday vote on a one-month spending bill. This proposal was crafted to gain favor from the conservative elements within the Republican Conference by incorporating a 1% reduction in last year’s spending along with a range of Republican-backed initiatives for border security and immigration.

Given the Democratic control of the Senate, the likelihood of accepting such conservative measures is slim. McCarthy’s most feasible option at this juncture is to pass a proposal to initiate discussions with the Senate, although even this route appears increasingly uncertain as time runs out.

The Speaker had organized a vote on a Department of Defense spending bill for Wednesday, followed by the short-term funding measure the subsequent day. “There’s substantial opposition at this point,” noted Rep. Kevin Hern, R-Okla., leader of the Republican Study Committee, the largest conservative faction in the House. Hern mentioned that much negotiation was still taking place “behind the scenes” to secure enough votes for passage.

Heads of the so-called “five families”—the diverse conservative groups that form the House Republican majority—are scheduled to gather privately in the Speaker’s office later on Monday. It is imperative that they agree on a unified strategy, as McCarthy has only eight legislative workdays left before funding expires.

“This package safeguards our borders while keeping the government operational. Republicans must concentrate on these priorities,” said Rep. Dusty Johnson, R-S.D., chair of the Mainstreet Caucus, who was involved in shaping the proposal.

Although McCarthy maintains that there is still time to devise a strategy before the fiscal year concludes, he has also cautioned his party about the political pitfalls of a government shutdown. “I’ve experienced shutdowns, and no one ever emerges victorious from them. In such circumstances, you cede all leverage to the administration,” McCarthy opined during a Fox News interview on Sunday.

Resistance is already building within the party. Several Republicans took to X, the platform once known as Twitter, shortly after Sunday’s conference call, decrying even the modified spending package as grossly inadequate.

The U.S. Chamber of Commerce issued a memorandum on Monday, alerting the business sector to a “broad consensus” that an extended shutdown is likely, and warned that no straightforward solution exists for resuming governmental operations.

Treasury Secretary Janet Yellen, speaking on CNBC on Monday, underscored the potential economic ramifications of a funding lapse, stating, “We have a robust economy; introducing an element that could derail that momentum is undesirable.”

McCarthy could, in theory, turn to House Democrats to approve an interim funding bill by removing conservative policy victories from the legislation. However, such a move risks inflaming far-right members of his caucus, who have threatened to depose him as Speaker if he chooses this path.

For the moment, McCarthy has shown no willingness to compromise with Democrats to stave off a shutdown, reiterating on Monday that Republicans are still proposing “numerous viable solutions.”

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Contributing reporter Fatima Hussein in Washington provided additional reporting.

Frequently Asked Questions (FAQs) about government shutdown

More about government shutdown

• Federal Budget Process Explained
• Understanding Continuing Resolutions
• Profile: House Freedom Caucus
• Profile: Main Street Caucus
• U.S. Chamber of Commerce Shutdown Warning Memo
• Janet Yellen’s CNBC Interview on Fiscal Consequences
• Speaker Kevin McCarthy’s Political History
• The Role and Powers of the Speaker of the House
• What Happens During a Government Shutdown?