US’ spending relief – The Hindu BusinessLine

Nearly everyone had a sense of relief when President Joe Biden signed the Continuing Resolution on federal spending for the next three months failing which the government would have shut down during Christmas time.

But what law makers have done is merely kicked the can to the next showdown in March and to the incoming Republican administration, a scenario that the President elect Donald J Trump wished to avoid.

Which is why he was pushing for raising the debt limit, an idea that fell by the wayside by as many as 38 Republican members in the House of Representatives.

Trump has for long maintained that the federal deficit is far too much and that it ought to be addressed instead of just pushing it along on a three-month period by way of Continuing Resolutions.

Tariff measures

Trump’s way of addressing the huge deficit is by levying hefty tariffs, an idea that is not so appealing to some legislators as well as to economists who fear that it would be consumers who will have to bear the brunt.

And the nation’s kitty would only be leaner if Trump’s proposed tax cuts are factored in.

It is a well known fact that Trump enjoys getting into the middle of a political fight; upping the ante by threats and insults through the social media are all part of the game.

In the present context that he was pushed into the limelight from the outside by a super wealthy individual — Elon Musk — should not come as a big surprise. But in the end it was a tame show even if Trump’s supporters made it look as though the President elect had “won” this duel of sorts.

The fact remains that Republicans, Democrats and Trump know that government shutdown is not a winner.

But there is a larger agenda and message than a fight over raising debt relief or postponing the measure to 2027 or 2029.

Trump may have surprised some by getting involved in a process with Congress even before being in office; but he is clearly signalling to members of Congress, Republicans especially, of his determination to confront legislators in their turf on issues like spending, taxes and immigration.

In the present context Trump has made it clear that Republicans opposed to his idea will have to be taken care of. “Republican obstructionists have to be done away with”, he said on his social media post.

With primaries for the 2026 mid terms already in the way, Trump and his allies are sure to make the going difficult for uncomfortable Republicans and Democrats.

The Grand Old Party is acutely aware of the fact that they only have razor thin majorities in the House of Representatives and Senate and it does not take much to lose their hold, especially in the House.

Wealthy pro-Trump money bags will be prepared to pump funds into close races or making primaries difficult for those in the Grand Old Party opposing the President. And some Democrats in “close-win” districts would also be targeted.

The notion of a looming confrontation is neither only with Continuing Resolutions nor confined to House Republicans.

Senate confirmations

The President elect is reminding his own party in the Senate on confirmations, especially the contentious ones. Trump has already indicated that he is not about to back down on his Defence Secretary designate, Pete Hegseth in spite of earlier indications of having a re-think with Governor Ron DeSantis of Florida.

And many Senators have tough questions ahead for other Cabinet nominees like Kash Patel for Federal Bureau of Investigation (FBI); Tulsi Gabbard for National Intelligence Agency and Robert Kennedy Jr. for Health and Human Services.

The writer is a senior journalist who has reported from Washington DC on North America and United Nations

Related Content

The best time of day to drink coffee for maximum benefits isn’t first thing when you wake up

Donald Trump receives no prison time in New York ‘hush money’ case

AIG Hospitals to invest ₹800 cr in advanced cancer therapy system

Leave a Comment