Congress scrambles to pass stop-gap funding before shutdown Friday

“We’re almost there,” House Speaker Mike Johnson, R-La., told reporters of trying to negotiate a continuing resolution four days before government funding expires.

Bloomberg News

Congressional leaders were scrambling Tuesday to negotiate a short-term funding bill ahead of a looming Friday midnight government shutdown deadline.

The continuing resolution, which was expected to be released Tuesday, would likely fund the government through March 14. An automatic sequester kicks in April. A continuing resolution through March would give the incoming Trump administration a say in the fiscal 2025 budget.

“We’re almost there,” House Speaker Mike Johnson, R-La., told reporters Tuesday. Johnson said the Republicans, who will control both chambers next year, aim to craft a final fiscal 2025 spending bill early next year “and not wait until March.” He said the appropriators and committee chairs are already working on the full bill.

For the municipal bond market, government shutdowns would mean the loss of federal funds in key sectors like transportation, energy, healthcare and for cities and states. Direct-pay bonds like Build America Bonds are subject to cuts under sequestration.

It’s uncertain whether the GOP would abide by a rule that requires a bill to be published in the Congressional Record for at least 72 hours before a vote. That would delay a House vote to Thursday night, with the Senate potentially not picking it up until late Friday, hours before federal agencies run out of money.

The bill reportedly will include around $90 billion for disaster funding and $10 billion in direct payments to farmers.

Republicans in the Freedom Caucus were reportedly angry that the funding bill had turned into the type of “Christmas tree omnibus” package that Johnson had promised to avoid.

“This is not an omnibus, okay? This is a small CR that we had to add things to that were out of our control,” Johnson said at the press briefing. “These are not man made-disasters,’ he said, referring to Hurricanes Milton and Helene earlier this year. “These are things that are — the federal government has an appropriate role to do.”

Lawmakers reportedly agreed to drop a provision to ease federal permitting for energy infrastructure.

“I’m extremely disappointed that House Republicans walked away from this opportunity,” said retiring Senate Environment and Public Works Chair Tom Carper, D-Del., in a statement.

The CR will be lawmakers’ final action before they recess for the holidays.