To help you understand what is going on in the House and the Senate and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
New Speaker Mike Johnson’s (R-LA) short honeymoon is over, as he’s already used up significant political capital to pass a temporary government funding bill that avoided a shutdown of federal agencies days before Thanksgiving.
The Johnson-crafted stopgap bill that keeps the federal government funded at 2023 levels until early next year has infuriated hard-right House Republicans who pushed for steep spending cuts. The spending levels are the same as those included in an earlier temporary funding bill that former Speaker Kevin McCarthy (R-CA) jammed through in September, a move that led to his ouster days later by a handful of hardline conservatives. The current stopgap bill won’t cost Johnson his job, yet. But he already has received a tongue-lashing from hardliners in closed-door meetings, who are pulling the short leash they have on him tighter.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Adding to Johnson’s woes is an increasingly restless group of House GOP centrists from Biden-won districts who have made clear they’ll push back if leadership tries to force tough votes on them. The funding battle will only get worse after the New Year, when the unusual two-tiered funding bill runs out, with some parts expiring on January 19 and the rest running out on February 2. Johnson has vowed that November’s stopgap bill will be the last government funding bill he supports without spending cuts. Hardline Republicans would revolt otherwise. But any spending cuts are a non-starter with Democrats, setting up a dangerous game of political chicken that could result in a government shutdown after the New Year.
Meanwhile, Johnson is in a pickle regarding military aid to Israel and Ukraine. While money for Israel has wide bipartisan support, most Republicans oppose more cash for Ukraine unless Democrats also agree to comprehensive immigration reforms. Negotiations are at a standstill, though talks will continue. Johnson has gotten the benefit of the doubt so far, from his House Republican colleagues, because he inherited the speakership at a tricky time. But House GOPers won’t give him a pass indefinitely, and if he crosses hardliners again they won’t hesitate to launch an effort to fire him as they did with McCarthy.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
-
I Planned to Travel in Retirement, but the Weak Dollar is Making a European Vacation Harder to Afford. What Can I Do?Travel pros explain how you can afford a European vacation in retirement, despite a weak dollar.
-
Cash Balance Pension Plans: the Smart Way to Turbocharge Your RetirementCash balance plans can significantly boost your retirement strategy if you want a reliable, guaranteed income stream.
-
Big Changes Are Ahead for Higher EdThe Kiplinger Letter A major reform of higher ed is underway. Colleges are bracing for abrupt change, financial headwinds and uncertainty.
-
Breaking China's Stranglehold on Rare Earth ElementsThe Letter China is using its near-monopoly on critical minerals to win trade concessions. Can the U.S. find alternate supplies?
-
Will State Laws Hurt AI’s Future?The Kiplinger Letter Republicans in Congress are considering a moratorium on state AI laws. But it’s likely a growing patchwork of state AI regulations will be here for a while.
-
AI Goes To SchoolThe Kiplinger Letter Artificial intelligence is rapidly heading to K-12 classrooms nationwide. Expect tech companies to cash in on the fast-emerging trend.
-
The IRS is in ChaosThe Tax Letter DOGE, departures, data agreements and more are creating havoc at the IRS.
-
Trump's Second 100 DaysThe Kiplinger Letter President Trump's agenda faces legal and legislative roadblocks.
-
The Economic Impact of the US-China Trade War
The Letter The US-China trade war will impact US consumers and business. The decoupling process could be messy.
-
Trump Dials Back Most Tariffs but Targets ChinaThe Kiplinger Letter Wall Street hopes that higher tariffs on most countries are on hold for good. But the trade war between the U.S. and China is heating up.
