New US House Speaker Faces Early Challenges on Israel and Government Funding, Reports Reuters

By David Morgan

WASHINGTON – Republican Mike Johnson, the newly appointed speaker of the U.S. House of Representatives, expressed his commitment on Wednesday to advance a $14.3 billion aid bill for Israel, despite warnings from nonpartisan researchers that his strategy for funding could actually worsen the federal deficit.

As he faces his first significant challenge as the leading Republican in Congress, the Louisiana representative is also working to pass three spending bills for 2024 this week. His goal is to unify the divided House majority around a temporary funding measure to prevent a potential government shutdown scheduled for November 17.

During a lunch with Senate Republicans, Johnson indicated his preference for a continuing resolution (CR) to fund the government through January 15, allowing the House additional time to pass all 12 full-year spending bills for 2024. Some senators noted that he mentioned extending this temporary funding to April, possibly including a 1% across-the-board spending cut to encourage progress.

“January 15 may not be enough time to get everything done,” stated Republican Senator John Barrasso. He added that if the appropriations weren’t completed by then, they may require another continuing resolution while simultaneously passing the necessary bills.

Johnson must navigate existing tensions between hardline Republicans and centrist members, tensions that previously led to the dramatic removal of his predecessor, Kevin McCarthy. These divisions could jeopardize support for the appropriations bills that aim to fund congressional operations and various departments through September 30.

To highlight fiscal responsibility as a Republican core value, Johnson plans to fund the Israeli aid bill using funds that Democrats earmarked for the Internal Revenue Service (IRS), which has long been a target of Republican criticism. However, such cuts could undermine the IRS’s effectiveness in tax collection.

A report from the nonpartisan Congressional Budget Office indicated that this approach could result in a $27 billion revenue loss and a $12.5 billion increase in the federal deficit over the next decade. The U.S. Treasury has projected an even larger revenue loss, estimated at $90 billion.

Johnson dismissed the CBO findings, stating, “Only in Washington, when you cut spending, do they call it an increase in the deficit.”

A vote on the Israel aid measure in the House is anticipated for Thursday.

However, Senate Majority Leader Chuck Schumer cautioned that the bill is unlikely to gain traction in the Democrat-led Senate, proclaiming it “dead before it even is voted on” and suggesting that Johnson should start anew.

President Joe Biden has put forth a broader $106 billion aid package that encompasses support for Israel and Ukraine, funding to enhance competition with China in the Indo-Pacific region, and security funding along the U.S.-Mexico border.

Johnson shared with Senate Republicans that combining aid for both Israel and Ukraine would be challenging due to conflicting views among different Republican factions. “He just said over and over again: listen, for me it’s just numbers. I cannot do them together,” recalled Republican Senator Josh Hawley.

Instead, Johnson plans to link Ukraine funding to unspecified provisions aimed at tightening security at the U.S.-Mexico border.

The proposals concerning Israeli aid, the continuing resolution, and other appropriations will serve as an early measure of Johnson’s leadership and the ability of his narrow 221-212 majority to find common ground, as well as cooperate with Democrats who control the Senate and the presidency.

“This will be a litmus test,” remarked Representative Ryan Zinke, a Republican who serves on the House committee responsible for setting spending priorities. “There’ll be some grumbling, but I think they’ll ultimately pass.”

The U.S. budget deficit surged to $1.7 trillion for the fiscal year ending September 30, marking the highest level outside the COVID-19 pandemic period. Factors such as rising interest rates, high costs associated with Social Security and Medicare, and the repercussions of a 2017 tax cut have pushed the nation’s debt beyond $33 trillion.

Hardliners within the party are advocating for spending cuts and policy victories to be included in any continuing resolution. Former Speaker McCarthy was removed from his position after agreeing to pass a continuing resolution with Democratic support, and this internal conflict has made many Republicans wary of engaging in another shutdown confrontation.

“We just wasted three weeks dealing with whatever the previous situation was,” commented Representative Kelly Armstrong from South Dakota. “It’s very difficult for members in tough districts to return home and justify any reason for a shutdown right now.”

This context increases the likelihood that Johnson may ultimately choose to pursue a “clean” continuing resolution without any added conditions or cuts to spending.