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Kevin McCarthy's ghost is haunting House GOPs' next big legislative fight

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Kevin McCarthy's ghost is haunting House GOPs' next big legislative fight

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He has been out of Congress for nearly half a year, but the shadow of former House Speaker Kevin McCarthy, R-Calif., is still looming large over the House of Representatives as lawmakers get ready for another intense government funding fight.

Last year, McCarthy agreed to suspend the U.S. debt limit through January 2025 in exchange for federal spending caps for the next two fiscal years, a deal he struck with President Biden called the Fiscal Responsibility Act. Under its terms, discretionary government funding can only grow by 1% in fiscal year 2025.

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House appropriators are now wrestling with how to navigate that cap without severely impacting Homeland Security and Defense spending. Fiscal conservatives want negotiators to stick to the statutory cap, which is roughly $1.606 trillion. Defense hawks, meanwhile, are concerned about the effects of a meager increase and worry it could amount to a spending cut on national security when accounting for inflation.

“That was a deal that McCarthy made, right? He’s not here anymore. But our hands might still, legally, be tied to it,” one GOP lawmaker told Fox News Digital. 

WHY MEMBERS OF CONGRESS DECIDE THEY ‘GOTTA GET OUT OF THIS PLACE’

Former House Speaker Kevin McCarthy may have left Congress, but his deal with President Biden is still playing a decisive role in the latest government funding talks. (Photo by Aaron Schwartz/NurPhoto via Getty Images)

“I understand what the intent of the FRA was, but… the caps as written prevent us from effectively keeping pace with China. So, whatever is needed between leadership, the Senate and the president to allow us a little more maneuvering space in terms of the allocations between the federal agencies and the 12 bills, I think is necessary.”

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Republican Study Committee Chairman Kevin Hern, R-Okla., conceded that “sure” the caps constrained negotiators but urged them to work toward it as written.

“Honestly, I’m having a difficult time figuring out why it’s so hard for us to establish the numbers. I mean, it was agreed to a two-year cap. You know, $1.606 trillion is the number, but it’s like everybody’s struggling to figure out what it really is,” Hern said.

He noted that fiscal year 2024’s government funding level was “a little bit higher” than the agreed-upon $1.59 trillion, thanks to “some sidebar deals that all of us found out about afterwards.”

“But this cap is $1.606, and with no backroom cigar smoke-filled room deals. So we’ll see where my colleague Congressman Cole comes up with the appropriations,” Hern said.

NATIONAL SECURITY HAWKS WARN CONGRESS THROWING PENTAGON ‘UNDER THE BUS’ WITH ‘INADEQUATE’ SPENDING BUMP

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House Appropriations Committee Chairman Tom Cole said the Fiscal Responsibility Act is “the law” when asked if it constrained him. (Drew Angerer/Getty Images)

When asked about whether he felt constrained by the FRA, House Appropriations Committee Chairman Tom Cole, R-Okla., told Fox News Digital, “I mean, that’s the law, so we’re going to mark it up to what the law tells us to mark up to.”

Rep. Jake Ellzey, R-Texas, a member of the Appropriations Committee, similarly said, “We’re doing the best we can, it’s the law of the land. So you do what you can with what you’ve got — if frogs had wings, they’d be a lot more successful on not hitting their rear end when they jump.”

He also suggested that there would be certain hurdles brought by the FRA. “Based on the FRA, most of those bills are going to take a shave except for Defense and Homeland. And of course, even with the increase for those two, it’s a net decrease because of inflation, so real dollars are still getting cut no matter which spending bill you’re talking about,” Ellzey said.

“Chairman Cole has already made some good, hard, strategic decisions…so we’ve got some clear pictures of where we’re going, and we’re going to be far more aggressive on getting those bills done on time this year.”

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Indeed, House GOP leaders are eyeing an ambitious schedule to get all 12 individual spending bills that fund the U.S. government passed well before the Sept. 30 deadline at the end of the fiscal year.

SENATE PASSES MAMMOTH $1.2T SPENDING PACKAGE AFTER BRIEF PARTIAL GOVERNMENT SHUTDOWN

Rep. Jake Ellzey conceded that appropriators were constrained somewhat but expressed confidence in Rep. Tom Cole’s leadership. (Getty Images)

Majority Leader Steve Scalise, R-La., outlined a legislative calendar that would have them passed before Congress embarks on a monthlong August recess during a closed-door House GOP conference meeting earlier this week, a source familiar with his comments told Fox News Digital.

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Last year’s government funding fight was marked by chaos and disagreements within the House GOP as members on the right of the conference pushed leaders to leverage a government shutdown in exchange for deeper spending cuts, while other Republicans sounded the alarm on the economic and political ramifications a shutdown would have.

The fight over funding the government in fiscal year 2024 was among the factors that led to McCarthy’s historic ouster last October.

Fox News Digital reached out to a representative for the former speaker for comment.

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Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns

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Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns

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A federal judge Friday temporarily blocked the Trump administration from stopping subsidies on childcare programs in five states, including Minnesota, amid allegations of fraud.

U.S. District Judge Arun Subramanian, a Biden appointee, didn’t rule on the legality of the funding freeze, but said the states had met the legal threshold to maintain the “status quo” on funding for at least two weeks while arguments continue.

On Tuesday, the U.S. Department of Health and Human Services (HHS) said it would withhold funds for programs in five Democratic states over fraud concerns.

The programs include the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant, all of which help needy families.

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USDA IMMEDIATELY SUSPENDS ALL FEDERAL FUNDING TO MINNESOTA AMID FRAUD INVESTIGATION 

On Tuesday, the U.S. Department of Health and Human Services said it would withhold funds for programs in five Democratic states over fraud concerns. (AP Photo/Jose Luis Magana, File)

“Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” HHS Deputy Secretary Jim O’Neill said in a statement on Tuesday.

The states, which include California, Colorado, Illinois, Minnesota and New York, argued in court filings that the federal government didn’t have the legal right to end the funds and that the new policy is creating “operational chaos” in the states.

U.S. District Judge Arun Subramanian at his nomination hearing in 2022.  (Tom Williams/CQ-Roll Call, Inc via Getty Images)

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In total, the states said they receive more than $10 billion in federal funding for the programs. 

HHS said it had “reason to believe” that the programs were offering funds to people in the country illegally.

‘TIP OF THE ICEBERG’: SENATE REPUBLICANS PRESS GOV WALZ OVER MINNESOTA FRAUD SCANDAL

The table above shows the five states and their social safety net funding for various programs which are being withheld by the Trump administration over allegations of fraud.  (AP Digital Embed)

New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.”

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New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.” (Win McNamee/Getty Images)

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Fox News Digital has reached out to HHS for comment.

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Washington National Opera is leaving the Kennedy Center in wake of Trump upset

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Washington National Opera is leaving the Kennedy Center in wake of Trump upset

In what might be the most decisive critique yet of President Trump’s remake of the Kennedy Center, the Washington National Opera’s board approved a resolution on Friday to leave the venue it has occupied since 1971.

“Today, the Washington National Opera announced its decision to seek an amicable early termination of its affiliation agreement with the Kennedy Center and resume operations as a fully independent nonprofit entity,” the company said in a statement to the Associated Press.

Roma Daravi, Kennedy Center’s vice president of public relations, described the relationship with Washington National Opera as “financially challenging.”

“After careful consideration, we have made the difficult decision to part ways with the WNO due to a financially challenging relationship,” Daravi said in a statement. “We believe this represents the best path forward for both organizations and enables us to make responsible choices that support the financial stability and long-term future of the Trump Kennedy Center.”

Kennedy Center President Ambassador Richard Grenell tweeted that the call was made by the Kennedy Center, writing that its leadership had “approached the Opera leadership last year with this idea and they began to be open to it.”

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“Having an exclusive relationship has been extremely expensive and limiting in choice and variety,” Grenell wrote. “We have spent millions of dollars to support the Washington Opera’s exclusivity and yet they were still millions of dollars in the hole – and getting worse.”

WNO’s decision to vacate the Kennedy Center’s 2,364-seat Opera House comes amid a wave of artist cancellations that came after the venue’s board voted to rename the center the Donald J. Trump and the John F. Kennedy Memorial Center for the Performing Arts. New signage featuring Trump’s name went up on the building’s exterior just days after the vote while debate raged over whether an official name change could be made without congressional approval.

That same day, Rep. Joyce Beatty (D-Ohio) — an ex officio member of the board — wrote on social media that the vote was not unanimous and that she and others who might have voiced their dissent were muted on the call.

Grenell countered that ex officio members don’t get a vote.

Cancellations soon began to mount — as did Kennedy Center‘s rebukes against the artists who chose not to appear. Jazz drummer Chuck Redd pulled out of his annual Christmas Eve concert; jazz supergroup the Cookers nixed New Year’s Eve shows; New York-based Doug Varone and Dancers dropped out of April performances; and Grammy Award-winning banjo player Béla Fleck wrote on social media that he would no longer play at the venue in February.

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WNO’s departure, however, represents a new level of artist defection. The company’s name is synonymous with the Kennedy Center and it has served as an artistic center of gravity for the complex since the building first opened.

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AOC accuses Vance of believing ‘American people should be assassinated in the street’

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AOC accuses Vance of believing ‘American people should be assassinated in the street’

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Democratic Rep. Alexandria Ocasio-Cortez is leveling a stunning accusation at Vice President JD Vance amid the national furor over this week’s fatal shooting in Minnesota involving an ICE agent.

“I understand that Vice President Vance believes that shooting a young mother of three in the face three times is an acceptable America that he wants to live in, and I do not,” the four-term federal lawmaker from New York and progressive champion argued as she answered questions on Friday on Capitol Hill from Fox News and other news organizations.

Ocasio-Cortez spoke in the wake of Wednesday’s shooting death of 37-year-old Renee Nicole Good after she confronted ICE agents from inside her car in Minneapolis.

RENEE NICOLE GOOD PART OF ‘ICE WATCH’ GROUP, DHS SOURCES SAY

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Members of law enforcement work the scene following a suspected shooting by an ICE agent during federal operations on January 7, 2026, in Minneapolis, Minnesota. (Stephen Maturen/Getty Images)

Video of the incident instantly went viral, and while Democrats have heavily criticized the shooting, the Trump administration is vocally defending the actions of the ICE agent.

HEAD HERE FOR LIVE FOX NEWS UPDATES ON THE ICE SHOOTING IN MINNESOTA

Vance, at a White House briefing on Thursday, charged that “this was an attack on federal law enforcement. This was an attack on law and order.”

“That woman was there to interfere with a legitimate law enforcement operation,” the vice president added. “The president stands with ICE, I stand with ICE, we stand with all of our law enforcement officers.”

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And Vance claimed Good was “brainwashed” and suggested she was connected to a “broader, left-wing network.”

Federal sources told Fox News on Friday that Good, who was a mother of three, worked as a Minneapolis-based immigration activist serving as a member of “ICE Watch.”

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Ocasio-Cortez, in responding to Vance’s comments, said, “That is a fundamental difference between Vice President Vance and I. I do not believe that the American people should be assassinated in the street.”

But a spokesperson for the vice president, responding to Ocasio-Cortez’s accusation, told Fox News Digital, “On National Law Enforcement Appreciation Day, AOC made it clear she thinks that radical leftists should be able to mow down ICE officials in broad daylight. She should be ashamed of herself. The Vice President stands with ICE and the brave men and women of law enforcement, and so do the American people.”

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