Uncertainty Looms Over Congress as They Embark on August Recess with Government Funding Unclear

Congress members dispersed for their August break this week, leaving the task of funding the government largely unfinished, raising concerns about a potential partial government shutdown this fall.

The deadline for Congress to decide on government funding is Oct. 1, the commencement of the new fiscal year. Options include passing expenditure bills that extend funding into next year or simply settling for a short-term measure to keep agencies operational until a longer-term agreement is reached. Either way, the process promises to be complex.

“Before we finalize this, we’re going to rattle the American people considerably,” admitted Sen. Chris Coons, D-Del.

Coons’ viewpoint is largely echoed in Congress, highlighting the divide between the Republican-dominated House and the Democratic-led Senate, with each proposing markedly different — and primarily incompatible — spending routes.

The Senate is mostly maintaining the spending levels that President Joe Biden agreed with House Republicans in late May, an agreement that was part of a deal to raise the debt ceiling, extend the government’s borrowing authority, and avert a disastrous default.

The Senate aims to add an additional $13.7 billion in emergency funding, including $8 billion for defense and $5.7 billion for non-defense, while keeping discretionary spending generally stable for the coming year, except for increases in military and veterans affairs.

House Republicans, many of whom voted against the debt-ceiling agreement, are choosing a distinct path. They are advocating for bills that significantly reduce spending, aiming to appeal to members demanding a return to fiscal year 2022 levels. They are also introducing numerous policy riders largely opposed by Democrats, such as restricting access to abortion pills, banning funding for hormone therapy and certain surgeries for transgender veterans, and forbidding diversity training programs in the federal workforce.

At a press conference held this past week, some members of the House Freedom Caucus, a conservative branch of the House GOP, argued that voters elected a Republican majority to curb government spending, urging House Republicans to utilize every available tool to achieve desired spending reductions.

Rep. Bob Good, R-Va., boldly stated, “We shouldn’t fear a government shutdown. Most of the American people won’t even notice if the government shuts down temporarily.”

Yet many House Republicans disagree. Rep. Mike Simpson, R-Idaho, warned that Republicans would likely shoulder the blame for a shutdown.

The slim Republican majority accentuates the influence a small group can wield. This was demonstrated when conservative opponents, dissatisfied after the debt ceiling agreement passed, temporarily halted House votes, slowing the GOP agenda.

In the aftermath, GOP Rep. Kay Granger of Texas, chair of the House Appropriations Committee, proposed limiting nondefense spending at 2022 budget levels, interpreting the debt agreement as setting an upper limit rather than a minimum requirement. This helped get the House back on track but put them on a collision course with the Senate.

Despite party-line votes pushing spending bills out of House committees, the key Senate committee has maintained a bipartisan approach, drafting spending bills with near-unanimous support.

McCarthy optimistically stated, “We’ve got until Sept. 30. I think we can get this all done.”

The two chambers have to pass 12 spending bills in total. The House has passed one so far, and others have left the committee. The Senate, on the other hand, hasn’t passed any, although all 12 have advanced out of the committee, a feat not achieved since 2018.

However, complexities abound on the House side, where Republicans postponed the passage of a spending bill to fund federal agriculture, rural programs, and the Food and Drug Administration until after the recess, due to disagreements over the bill’s contents. They began their August recess a day ahead of schedule instead of holding votes on Friday.

There’s a high chance that Congress will need to pass an interim spending bill before the new fiscal year starts on Oct. 1. The Senate can lead the vote on the measure, which would then pressure House Republicans to either bring it up for a vote or risk a shutdown.

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More about Government Shutdown

• What is a Government Shutdown?
• Understanding the US Congress
• US Fiscal Year Explained
• Understanding the Debt Ceiling
• Role of the House Freedom Caucus