Speaker Kevin McCarthy (R-Calif.) is seeking to appease his conservative agitators by targeting next year’s federal spending at last year’s levels.
It’s not going well.
A long list of conservatives left Washington this week accusing McCarthy and other GOP leaders of using budgetary “gimmicks” to create the false impression that they’re cutting 2024 outlays back to 2022 levels, rather than adopting the fundamental budget changes to realize those reductions and rein in deficit spending over the long haul.
The hard-liners are already threatening to oppose their own party’s spending bills when they hit the House floor later this year, undermining the Republicans’ leverage in the looming budget fight while heightening the chances of a government shutdown.
More House coverage from The Hill
- Shutdown odds grow amid GOP infighting
- These 20 House Republicans voted to block resolution to censure Adam Schiff
- House GOP votes to increase congressional authority over federal rulemaking
- House GOP inches closer to Mayorkas impeachment amid discord in conference
The internal clash would also be an enormous headache for the Speaker, who’s already under fire from conservatives for his handling of the debt ceiling debate and faces intense pressure to hold the line on spending in the coming battle over government funding.
“He’s not doing ‘22 spending levels; he’s talking ‘22 spending levels,” Rep. Andy Biggs (R-Ariz.), former head of the far-right Freedom Caucus, said Thursday. “Talk is cheap.”
Biggs and a number of other conservatives fear that GOP appropriators intend to use a budgetary tool known as a rescission in the drafting of their 2024 spending bills. Rescissions essentially claw back spending that Congress has already appropriated for future programs, allowing appropriators to claim they’re funding the government at one level while actually spending at another. The hard-liners say that mechanism will lead to higher deficits than they’re ready to support.
“The idea of saying that we’re marking to 2022, but we’re going to buy up to 2023 marks with rescissions, just — to me that’s disingenuous,” Biggs said.
Rep. Andy Biggs (R-Ariz.) speaks to reporters before a press conference held by the House Freedom Caucus regarding the proposed Biden-McCarthy debt limit deal on Tuesday, May 30, 2023.
Rep. Ken Buck (R-Colo.), another Freedom Caucus member, agreed.
“My understanding is they’re going to use ‘23 numbers, and then through rescissions, get back to ‘22 numbers. So if they don’t get the rescission, then they don’t get the ‘22 number,” Buck said. “The whole predicate is, ‘We’re going to do this with rescissions,’ and then the rescissions don’t happen, and then everyone says, ‘Well, that wasn’t my fault.’”
Buck said he hasn’t voted for any appropriations bill “in a long time.” And without more drastic cuts and fundamental structural changes, he’ll likely oppose this year’s bills, too.
“To go off the cliff at the ‘22 pace is not much different to me than going off the cliff at the ‘23 pace,” he said.
The opposition is significant because Democrats are already up in arms that McCarthy is targeting 2024 spending figures below the caps he negotiated with President Biden in this month’s debt ceiling agreement. They’re vowing to oppose any appropriations bills that fall below those figures — leaving McCarthy with little room for GOP defections given the Republicans’ slim House majority.
“It’s our view that a resolution was reached, and was voted on in a bipartisan way, and at the end of the day, any spending agreement that is arrived at by the end of the year has to be consistent with the resolution of the default crisis,” House Minority Leader Hakeem Jeffries (D-N.Y.) told reporters Thursday in the Capitol.
“Otherwise, what was it all for?”
The issue of government spending has been at the center of the battle this year between McCarthy and the hard-line conservatives, who had sought in January to win a promise from the Speaker to cut 2024 spending down to 2022 levels — a reduction of roughly $130 billion from current spending. The conservatives were furious that, as part of this month’s debt ceiling deal between McCarthy and Biden, next year’s spending came in above that figure, essentially frozen at 2023 levels with a 1 percent increase slated for 2025.
McCarthy has responded by claiming the topline figure he negotiated with Biden was merely a ceiling, not an objective. He’s instructed appropriators to target 2024 funding below that cap, and Rep. Kay Granger (R-Texas), chairwoman of the Appropriations Committee, announced this week that she’ll do just that.
“The Fiscal Responsibility Act set a topline spending cap – a ceiling, not a floor – for Fiscal Year 2024 bills,” Granger said in a statement Monday. “That is why I will use this opportunity to mark-up appropriations bills that limit new spending to the Fiscal Year 2022 topline level.”
Yet the conservatives are far from convinced.
Rep. Bob Good (R-Va.) hailed Granger for putting out the statement. “But what I’m hearing,” he quickly added, “is that the intention is to claim 2022 [levels], and then utilize rescissions to take it back up to 2023, and claim that’s some kind of a victory.”
“We need true 2022 levels, and then we ought to be utilizing targeted cuts and rescissions to go beneath that, not pretend 2022 levels plussed-up with rescissions,” he said.
Rep. Bob Good (R-Va.) speaks to reporters as he heads to the House Chamber for a series of votes on Tuesday, June 6, 2023. (Greg Nash)
Rep. Matt Gaetz (R-Fla.) delivered a similar warning this week, saying the key issue is “the paradigm around what constitutes 2022 spending levels.”
“We don’t think you oughta be able to buy your way into those spending levels with rescissions. We think that you ought to appropriate to that level. Because if you’re only able to get to the 2022 levels with rescissions, then the budgetary process is void of the programmatic reforms that are necessary,” Gaetz said.
“My concern with [Granger’s] statement is that it seems still that 2022 levels are a term of art, rather than a term of math,” he continued. “I’m worried that Chair Granger’s statement reflects a willingness to only get to 2022 spending levels through rescissions, which is not going to be palatable for my crew.”
Neither Granger’s office nor McCarthy’s responded to requests for comment Thursday.
The conservative criticisms have raised new questions about McCarthy’s ability to keep the confidence of his restive conference while cutting deals with Democrats to fund the government and prevent a shutdown. The Speaker has said the hard-liners are being unrealistic about governing in a divided Washington — but his arguments have failed to make those conservatives back down.
“Nobody wants a shutdown,” Gaetz said. “But we’re not gonna vote for budgetary gimmicks and deception as a strategy for funding the government.”
Mychael Schnell contributed.