Financial crisis signals challenges for Johnson in the coming year

The speaker is attempting to ease tensions within a rebellious faction of the farm district GOP while also addressing the frustrations of conservatives as the government funding deadline approaches this Friday.

Financial crisis signals challenges for Johnson in the coming year
Speaker Mike Johnson’s efforts to pass a short-term spending bill before the impending shutdown deadline on Friday should have been relatively straightforward. However, it has morphed into yet another challenge of his capacity to navigate a tumultuous conference while pursuing an ambitious agenda for the coming year.

Johnson and his team are focused on minimizing Republican defections while preserving enough Democratic support, given that the funding extension cannot pass with only Republican votes. A demand for farm aid from Republicans representing agriculture-heavy districts is complicating these negotiations, leading Democrats to request additional concessions and stoking conservative discontent over increased spending.

While hardliners might oppose a stopgap spending bill regardless, their dissatisfaction could create issues for Johnson on January 3, when he will require near-unanimous GOP support to retain his position as Speaker.

Johnson has previously attempted to placate ultraconservatives, but this effort angered Republicans from farm districts; last Tuesday, he rejected their request to finance economic aid using conservation funds from the Democrats' partisan Inflation Reduction Act. Johnson and Senate Minority Leader Mitch McConnell maintained this stance during discussions on Friday night, provoking GOP lawmakers to threaten both publicly and privately to vote against the final funding stopgap unless it incorporates billions in economic assistance for farmers.

“It’s a must-have,” asserted House Agriculture Chair G.T. Thompson. He and other lawmakers contend that additional economic aid is necessary to shield struggling farmers from a new wave of bankruptcies and financial distress in rural America, where a significant majority of voters supported Donald Trump.

Thompson expressed that he was “pleased with the conversations” that are currently unfolding following a breakdown in leadership talks overnight on December 13. Johnson's team spent the weekend discreetly attempting to quell significant pushback from Republicans representing farm districts regarding the funding measure. Appropriations Chair Tom Cole noted Monday that the “differences are narrowing.”

“We're working through it. I’m optimistic,” he added.

Nevertheless, this situation serves as a troubling omen for Republicans in the next Congress. Unlike a mere funding delay, negotiations concerning ambitious party-line legislation on border security, taxation, and energy are already anticipated to become exceedingly complex. Despite the potential return of Trump to the White House and Republicans regaining control of the Senate, Johnson will still face a challenging task in balancing the diverse demands of his conference on various high-priority campaign issues with virtually no margin for error.

“Next year is going to be fun,” quipped a GOP aide involved in the funding discussions, speaking on condition of anonymity to provide candid insights.

At present, GOP leaders have informed lawmakers that Johnson aims to pass the entire government funding measure alongside a separate supplemental disaster package through a process known as suspension. However, this method necessitates a two-thirds majority, meaning Johnson requires support not only from his party but also from Democrats. His adversaries will closely monitor whether he can secure a majority of Republican votes for the final spending deal, which is perceived as a critical measure of leadership support within GOP ranks.

Hardliners largely oppose the farm bill extension that party leaders wish to attach to the stopgap, contending that Congress should reduce farm subsidies and other expenditures. This faction is now pressuring Johnson to reject any new spending in the funding stopgap as his speakership hangs in the balance.

“Adding things to the farm bill, I know farmers are hurting, but where is this coming from?” questioned Freedom Caucus member Ralph Norman.

GOP leaders were already anticipating that several of these conservatives would not support the funding agreement, as they typically maintain a principled opposition to stopgap measures. Should Johnson lose more support from GOP members, he will need to concede to more Democratic demands to advance the package through Congress before the Friday deadline.

On Monday, Congressional leaders were edging closer to finalizing a funding deal that includes $10 billion in economic aid for farmers as part of the agreement, potentially rising to $12 billion depending on Republican concessions on Democratic requests. House Majority Leader Steve Scalise informed reporters Monday morning that leaders might be able to release the text of the substantial bill in the imminent hours, though he emphasized that nothing was finalized.

“No white smoke yet, still working through the final pieces,” Scalise remarked late Monday morning.

Another demand that Johnson is attempting to balance involves farm district Reps. Zach Nunn and Don Bacon, who are advocating for a waiver in the spending package allowing year-round E15 ethanol fuel sales. Conservatives, who largely oppose ethanol subsidies, are outraged at this proposal.

Trump’s history of balancing support for both the ethanol and oil industries is notably complex.

Rep. Chip Roy, a prominent conservative who generally opposes stopgap funding bills and has not disclosed how he will vote on the speakership, stated on Monday that the ethanol measure and other provisions should not be included in the spending package.

“Call me crazy, but we should reduce the deficit and not pass stupid policies,” Roy, a member of the Freedom Caucus, wrote on X.

Alejandro Jose Martinez for TROIB News