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Budget crunch, Hegseth grilling and a crypto breakthrough

Punchbowl News · back to the audit
There's so much going on that we need to cover three topics at the top of this morning's edition — the looming budget resolution vote in the House, Defense Secretary Pete Hegseth's appearance before the Senate Appropriations Committee, and a deal on crypto legislation.

Will House Republicans pass a budget resolution? It's a busy week on the floor for reconciliation 3.0. The key votes are today and Wednesday. Today is a rule vote, and if that passes, Wednesday will be the budget resolution vote. Approving the $95 billion package is the first step in the reconciliation process for Republicans.

Famous last words, but the rule seems on mostly steady footing. GOP moderates rarely vote against rules, and conservative hardliners seem comfortable letting the measure pass.

Yet the budget resolution is another question.

Rep. Chip Roy (R-Texas) said he's "undecided" because the bill isn't offset by spending cuts, and he's worried the Senate won't pass the SAVE America Act, the GOP's voter ID and proof-of-citizenship bill.

"I'm a little torn, and I'm talking to some colleagues, and I'm going to see," Roy told us Monday night.

Rep. Keith Self (R-Texas) echoed the SAVE sentiment, while Rep. Ralph Norman (R-S.C.), now running for Senate, wants "more tweaks" to the resolution.

Remember: the House Freedom Caucus tends to fold, especially if President Donald Trump pressures them. We've seen it over and over again during this Congress.

Plus, conservatives will likely see this as the only path for SAVE and vote yes. Speaker Mike Johnson has also floated a fourth reconciliation bill during the lame duck session for spending cuts.

The GOP Conference's moderate faction doesn't look problematic. Rep. Brian Fitzpatrick (R-Pa.) said he's "against the war but for the troops" and seems likely to vote yes.

California Rep. Kevin Kiley, an Independent who caucuses with Republicans, said he's unlikely to vote yes. But Kiley could vote present again, as he did on reconciliation 2.0, which would help GOP leadership.

In sum, things seem to be trending generally in the right direction for Johnson. But House Republicans are a mercurial bunch. OMB Director Russ Vought will talk to House Republicans this morning at a closed party meeting.