Though McCarthy has been out of Congress for nearly six months, the shadow of former House Speaker Kevin McCarthy (R-Calif.) still looms large over the House as lawmakers prepare for another bitter budget fight.
Last year, McCarthy agreed to suspend the U.S. debt ceiling until January 2025 in exchange for caps on federal spending for the next two fiscal years, a deal he struck with President Biden called the Fiscal Responsibility Act. Under the act’s provisions, discretionary government budgets can only increase by 1% in fiscal year 2025.
The House Appropriations Committee is currently struggling with how to navigate the caps without severely impacting homeland security and defense spending. Fiscal conservatives are urging negotiators to stick to the statutory cap (about $1.606 trillion), while defense hawks are concerned about the impact of even a small increase that, when inflation is taken into account, could amount to a cut in national security spending.
“That was the deal that McCarthy made, right? He’s not here anymore. But legally our hands may still be tied on it,” one Republican lawmaker told Fox News Digital.
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Former House Speaker Kevin McCarthy may have left Congress, but his agreement with President Biden still plays a crucial role in the latest government funding negotiations. (Photo by Aaron Schwartz/NurPhoto via Getty Images)
“I understand the intent of the FRA, but the current caps don’t allow us to effectively keep pace with China. So I think we need to allow a little more wiggle room between leadership, the Senate and the president to do whatever is necessary in terms of apportioning federal agencies and the 12 bills.”
Rep. Kevin Hahn (R-Okla.), chairman of the Republican Study Committee, acknowledged that the caps “certainly” constrain negotiators but urged them to approach them as written.
“Frankly I don’t understand why it’s so hard to nail down a number. A two-year cap has been agreed to. We know the number is $1.606 trillion, but everyone seems to be having a hard time understanding how much that actually is,” Hahn said.
He noted that government funding levels for fiscal year 2024 were “just a little bit higher” than the agreed-upon $1.59 trillion, but that was due to “some side deals that we all learned about later.”
“But that cap is at $1.606 and there are no cigar-smoke filled backroom deals happening. We’ll just have to wait and see where my colleague, Rep. Cole, gets the money from that budget,” Hahn said.
National security hawks warn Congress is ‘sacrificing’ Pentagon with ‘insufficient’ spending increases
Asked whether the Fiscal Responsibility Act constrained him, House Appropriations Committee Chairman Tom Cole said it was “the law.” (Drew Ungerer/Getty Images)
Asked if he felt constrained by the FRA, House Appropriations Committee Chairman Tom Cole (R-Okla.) told Fox News Digital, “I mean, it’s the law, so we’re going to budget within the limits of what the law allows us to do.”
Rep. Jake Elzey (R-Texas), a member of the Appropriations Committee, similarly said, “We’re doing the best we can. It’s the law of the land, so we just have to do what we can with what we have. If frogs had wings they wouldn’t have to hit their butts when they jump.”
Ellzey also suggested that the FRA would pose certain obstacles: “Under the FRA, most bills would be cut except for defense and homeland security. And, of course, even with the increases in those two bills, it’s a net reduction for inflation, so no matter what spending bill you’re talking about, the real dollar amount would be cut,” Ellzey said.
“Chairman Kohl has already made some good, tough, strategic decisions, so we have a clear picture of where we’re going, and we’re going to be much more aggressive this year about getting these bills done on time.”
Indeed, House Republican leaders are eyeing an ambitious timeline to pass all 12 individual spending bills that fund the U.S. government well ahead of the September 30 deadline at the end of the fiscal year.
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Rep. Jake Elzey acknowledged that budget allocations are somewhat constrained, but expressed confidence in Rep. Tom Cole’s leadership. (Getty Images)
Rep. Steve Scalise (R-Louisiana) outlined a legislative timeline for passing the bill before Congress goes on a month-long recess in August during a closed-door meeting of House Republicans earlier this week, a source familiar with Scalise’s remarks told Fox News Digital.
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Last year’s budget fight was marked by turmoil and disagreement among House Republicans, with those on the right using the shutdown to pressure leaders to make further spending cuts, while other Republicans warned about the economic and political fallout.
The fight over the 2024 government budget was one of the factors that led to McCarthy’s historic downfall last October.
Fox News Digital has reached out to a representative for the former chairman for comment.
