California Aid Will Have Strings Attached
Author: Greg Valliere
January 14, 2025
WHEN MEMBERS OF CONGRESS are adamant about getting legislation enacted, they seek out a “must pass” bill that has to become the vehicle for their goals.
SUCH A SCENARIO is emerging on two “must pass” bills later this winter — extension of the debt ceiling and a massive aid bill for California, which will pass — with strings attached.
VETERAN REPUBLICANS WERE ASTOUNDED just before Christmas when President Trump said he would attach the debt ceiling provision to a budget bill, which has a March 14 deadline. GOP lawmakers had planned to hold back the debt ceiling until spring or summer but Trump jumped the gun.
THE OTHER MASSIVE BILL that has to pass is an aid package for California, which could cost $100 billion or more. House Speaker Mike Johnson and his GOP colleagues are vowing to hold that bill hostage unless California adopts new policies that allegedly would lessen the risks of more wildfires.
THIS IS ABOUT TO BECOME AN EPIC BATTLE between California Gov. Gavin Newsom and Trump, and could delay aid for several months as the two parties argue about what to attach to the bills.
TRUMP HAS A HUGE AGENDA: Starting next week he will roll out executive orders that will change regulations covering energy, health care, immigration and other issues. He hadn’t planned on a fight over California.
AN EARLY FIGHT over the debt ceiling and the need to spend a staggering amount of money on California are just two more reasons why Trump’s signature issues — especially an extension of tax cuts — will be delayed for months.
WE REITERATE OUR TAX THEME: It could be fall before a bill wins enactment, amid growing opposition from House hard-liners, who are adamant that there isn’t enough money to pay for Trump’s tax and spending goals.
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