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What Does a Shutdown Have to Do With the Budget or Elon Musk? Here’s a Guide.

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What Does a Shutdown Have to Do With the Budget or Elon Musk? Here’s a Guide.

Republicans in government are hard at work refashioning federal spending through three major efforts, proceeding along parallel tracks. They may seem to be all the same story — and they do relate to each other — but they each have their own goals, deadlines and constraints. Here, a guide to all three.

  • Potential changes: The bill would fund a portion of the budget — hundreds of billions of dollars — for the rest of the fiscal year.

  • Deadline: Saturday at 12:01 a.m.

  • Status: A House vote is scheduled for Tuesday.

If Congress doesn’t pass a bill to fund ongoing government programs by the end of Friday, there could be a shutdown.

Congress is supposed to pass yearlong spending bills before a fiscal year begins, through a process known as regular appropriations. That process often breaks down, so Congress frequently passes shorter-term spending bills every few months instead to keep the government funded. The latest such “continuing resolution” expires this week, and a new one, which would fund the government through the end of the fiscal year on Sept. 30, is on the table.

The appropriations process deals with only a portion of all federal spending — often called discretionary. It doesn’t affect “mandatory” programs like Social Security, which pay out benefits on a kind of autopilot, based on a formula. The resolution is also subject to a filibuster in the Senate, which means that at least seven Democrats will need to vote for it even if every Senate Republican supports it.

The current bill mostly allows the government to spend the same amount on most government agencies it has been spending all year, with a few key exceptions, including cuts to programs earmarked by lawmakers for their home districts, and an increase in military spending. Compared with last year’s funding, it reduces the amount allowed by around $7 billion — roughly 0.1 percent of the estimated $7 trillion in annual government spending.

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  • Potential changes: Trillions of dollars in changes to both tax revenue and spending, over 10 years.

  • Deadline: Oct. 1, or the process must start over.

  • Status: The budget resolution passed the House. The timing of next steps is unclear.

The House adopted a budget outline for what the government should spend and raise over the next decade. That budget is the very first part of a process that could help Republicans cut taxes and reshape large government programs. Republicans have chosen this route, known as reconciliation, so they can pass their policies without needing any Democratic votes in the Senate.

The reconciliation process still has many steps left to go. Republicans in the Senate would need to adopt a matching budget resolution, and many have expressed reservations about the House approach (the Senate has passed its own, smaller budget plan). Then both chambers will have to write and pass legislation that carries out the cuts and increases in spending outlined in the budget.

By design, budget reconciliation mostly addresses the parts of federal spending that are not part of the appropriations process. This includes mandatory programs like Medicare, Medicaid, food assistance, student loans and farm aid that get automatically funded unless Congress makes changes to their structure.

The budget adopted by the House would also allow tax cuts of around $4.5 trillion over a decade, partly offset by around $2 trillion in spending reductions. It also includes a few spending increases, for the military and border security. The combination could increase deficits by an estimated $3.4 trillion, including interest on federal debt.

Because the budget process affects a decade at a time, the numbers above are 10-year changes. That’s part of why they are so much larger than the numbers used to describe the continuing resolution, which covers only about half a year’s worth of spending.

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  • Potential changes: The stated goal is to cut around 15 percent of next year’s budget.

  • Deadline: That fiscal year ends in October 2027.

  • Status: The cuts from Mr. Musk’s team are continuing, with new layoffs and contract cancellations announced this week.

Mr. Musk, the billionaire entrepreneur, is leading his own effort to trim government spending, and it’s unclear exactly how it will come to intersect with the work of Congress. He has pledged to use a team called the Department of Government Efficiency to reduce federal spending by $1 trillion in the next fiscal year, an ambitious target that would be hard to achieve without legislation.

So far, Mr. Musk’s team has been directing agencies to fire workers and cancel government contracts, grants and leases. The majority of those changes affect the discretionary part of the budget — the smaller portion of government spending that Congress is also trying to address this week.

Mr. Musk and Congress seem to be clashing. The current continuing resolution mostly leaves agencies funded at their current level, and does not take account of the changes by Mr. Musk’s group. But there has been some discussion about codifying some of Mr. Musk’s cuts using a process called rescission.

The effort by his team has also mostly ignored the military, which makes up more than half of discretionary spending.

Some of the group’s changes could affect federal revenues, too. His team is enacting large staff reductions at the Internal Revenue Service, which collects taxes and investigates tax fraud. The Congressional Budget Office has estimated that a smaller I.R.S. staff generally means fewer taxes are collected.

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  • Potential changes: Without legislation, the U.S. could fail to pay its obligations and default.

  • Deadline: Sometime this summer.

  • Status: The Treasury Department is already using “extraordinary measures” to prevent a default for as long as possible.

As federal debt rises, Congress has to periodically pass legislation that allows the Treasury Department to keep issuing bonds. It’s unclear when the country will run out of options to prevent a default, but many budget experts believe it will be as soon as this summer.

If Congress fails to increase the debt limit, the country will begin defaulting on its debt, an action likely to have negative and cascading consequences for the U.S. economy. Payments to Social Security beneficiaries, medical providers and government workers could stop.

House Republicans have folded this increase in borrowing authority into their big budget bill. But if the reconciliation process isn’t finished in time, Congress may have to pass an increase to the debt limit some other way.

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Rubio targets Nicaraguan official over alleged torture tied to ‘brutal’ Ortega regime

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Rubio targets Nicaraguan official over alleged torture tied to ‘brutal’ Ortega regime

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Secretary of State Marco Rubio announced Saturday that the Trump administration is sanctioning a senior Nicaraguan official over alleged human rights violations.

Rubio said the U.S. is designating Vice Minister of the Interior Luis Roberto Cañas Novoa for his role in “gross violations of human rights” under the government of President Daniel Ortega and Vice President Rosario Murillo, marking what he said was the latest effort to hold the regime accountable.

“The Trump administration continues to hold the Murillo-Ortega dictatorship accountable for brutal human rights violations against Nicaraguans,” Rubio said in a post on X. “I’m designating Nicaraguan Vice Minister of the Interior Luis Roberto Cañas Novoa for his role in human rights violations.”

RUBIO TESTIFIES IN TRIAL OF EX-FLORIDA CONGRESSMAN ALLEGEDLY HIRED BY MADURO GOVERNMENT TO LOBBY FOR VENEZUELA

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Secretary of State Marco Rubio speaks at the State Department, April 14, 2026. The U.S. announced sanctions on a Nicaraguan official tied to alleged human rights abuses under the Ortega-Murillo government. (Andrew Harnik/Getty Images)

The designation was made under Section 7031(c), which allows the State Department to bar foreign officials and their immediate family members from entering the United States due to involvement in significant corruption or human rights abuses.

The State Department has said the Ortega-Murillo government has engaged in arbitrary arrests, torture and extrajudicial killings following mass protests that began in April 2018.

“Nearly eight years ago, the Rosario Murillo and Daniel Ortega dictatorship unleashed a brutal wave of repression against Nicaraguans who courageously stood against the regime’s increased tyranny, corruption, and abuse,” the statement reads.

The State Department said that the sanction marked the anniversary of the 2018 protests, after which more than 325 protesters were murdered in the aftermath.

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A panel of U.N.-backed human rights experts previously accused Nicaragua’s government of systematic abuses “tantamount to crimes against humanity,” following an investigation into the country’s crackdown on political dissent, according to The Associated Press.

The experts said the repression intensified after mass protests in 2018 and has since expanded across large parts of society, targeting perceived opponents of the government.

TRUMP ADMIN ANNOUNCES EXPANSION OF VISA RESTRICTION POLICY IN WESTERN HEMISPHERE

Nicaragua President Daniel Ortega delivers a speech during a ceremony to mark the 199th Independence Day anniversary, in Managua, Nicaragua Sept. 15, 2020.   (Nicaragua’s Presidency/Cesar Perez/Handout via Reuters)

Nicaragua’s government has rejected those findings.

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The designation follows a series of recent U.S. actions targeting the Ortega-Murillo government. In February, the State Department sanctioned five senior Nicaraguan officials tied to repression, citing arbitrary detention, torture, killings and the targeting of clergy, media and civil society.

Earlier this week, the department also announced sanctions on individuals and companies linked to Nicaragua’s gold sector, including two of Ortega and Murillo’s sons, accusing the regime of using the industry to generate foreign currency, launder assets and consolidate power within the ruling family.

The State Department said the move is part of ongoing efforts to hold the Nicaraguan government accountable for its actions.

Fox News Digital reached out to the Nicaraguan government and its embassy in Washington for comment but did not immediately receive a response.

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A man waves a Nicaraguan flag during a demonstration to commemorate Nicaragua’s national Day of Peace, which is celebrated in the country on April 19, and to protest against the government of Nicaraguan President Daniel Ortega in San Jose, Costa Rica on April 16, 2023. (Jose Cordero/AFP)

The Trump administration has taken an increasingly aggressive posture in the Western Hemisphere in recent months, including a Jan. 3, 2026, operation that resulted in the capture of Venezuelan leader Nicolás Maduro and his wife, Cilia Flores.

The U.S. has also carried out a series of strikes targeting suspected drug-trafficking vessels in the region, part of a broader crackdown tied to regional security and narcotics enforcement efforts.

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Outlines of a deal emerge with major concessions to Iran

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Outlines of a deal emerge with major concessions to Iran

Upbeat claims from President Trump over an imminent peace deal to end the war with Iran were met with deep skepticism Friday across the Middle East, where Iranian and Israeli officials questioned the prospects for a lasting agreement that would satisfy all parties.

The outlines of an agreement began to emerge that would provide Iran with a major strategic victory — and a potential financial windfall — allowing the Islamic Republic to leverage its control over the Strait of Hormuz to exact significant concessions from the United States and its ally Israel as Trump presses for a swift end to the conflict.

In a series of social media posts and interviews with reporters, Trump announced that the strait was “fully open,” vowing Tehran would never again attempt to control it. But Iranian officials and state media said that conditions remained on passage through the waterway, including the imposition of tolls and coordination with the Islamic Revolutionary Guard Corps.

Iranian diplomats posted threats that its closure could resume at any time of their choosing, and warned that restrictions would return unless the United States agreed to lift a blockade of its ports. Trump had said Friday that the blockade would remain in place.

“The conditional and limited reopening of a portion of the Strait of Hormuz is solely an Iranian initiative, one that creates responsibility and serves to test the firm commitments of the opposing side,” said a top aide to Iran’s president, dismissing Trump’s statements on the contours of a deal as “baseless.”

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“If they renege on their promises,” he added, “they will face dire consequences.”

In an overture to Iran, Trump said Israel would be “prohibited” from conducting additional military strikes in Lebanon, where the Israeli government of Prime Minister Benjamin Netanyahu seeks to prevent Hezbollah, an Iranian proxy militia, from rearming, a potential threat to communities in the Israeli north.

But in a speech delivered in Hebrew, Netanyahu would say only that Israel had agreed to a temporary ceasefire, while members of his Cabinet warned that Israel Defense Forces operations in southern Lebanon were not yet finished. A top ally of the prime minister at a right-wing Israeli news outlet warned that Trump was “surrendering” to Iran in the talks.

It was a day of public messaging from a president eager to end a war that has proved historically unpopular with the American public, and has driven a rise in gas prices that could weigh on his party entering this year’s midterm elections.

Yet, Republican allies of the president have begun warning him that an agreement skewed heavily in Tehran’s favor could carry political costs of its own.

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Trump was forced to deny an Axios report Friday that his negotiating team had offered to release $20 billion in frozen Iranian assets in exchange for Tehran agreeing to hand over its fissile material, buried under rubble from a U.S. bombing raid last year.

That sum would amount to more than 10 times what President Obama released to Iran under a 2015 nuclear deal, called the Joint Comprehensive Plan of Action, that was the subject of fierce Republican criticism in the decade since.

“I have every confidence that President Trump will not allow Iran to be enriched by tens of billions of dollars for holding the world hostage and creating mayhem in the region,” said Sen. Lindsey Graham (R-S.C.), a strong supporter of the war. “No JCPOAs on President Trump’s watch.”

Still, Trump said in a round of interviews that a deal could be reached in a matter of days, ending less than two weeks of negotiations.

He claimed that Tehran had agreed to permanently end its enrichment of uranium — a development that, if true, would mark a dramatic reversal for the Islamic Republic from decades developing its nuclear program, and from just 10 days ago, when Iranian diplomats rejected a U.S. proposal of a 20-year pause on domestic enrichment in favor of a five-year moratorium.

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He said Iran had agreed never to build nuclear weapons — a pledge Tehran has made repeatedly, including under the Nuclear Nonproliferation Treaty, in a religious decree from then-Supreme Leader Ayatollah Ali Khamenei, and in the 2015 agreement — while continuing nuclear activities viewed by the international community as exceeding civilian needs.

And he repeatedly stated that Iran had agreed to the removal of its enriched uranium from the country, either to the United States or to a third party. Iranian state media stated Friday afternoon that a proposal to remove the country’s highly enriched uranium had been “rejected.”

Iran’s agreement to allow safe passage for commercial vessels through the Strait of Hormuz is linked to a ceasefire in Lebanon that the Israeli Cabinet approved for only a 10-day period. Regardless of whether it holds or is extended, Israeli officials said their military would not retreat from its current positions in southern Lebanon — opening up Israeli forces to potential attack by Hezbollah militants unbound by a truce brokered by the Lebanese government.

The Lebanese people, Hezbollah officials said, have “the right to resist” Israeli occupation of their land. Whether the fighting resumes, the group added, “will be determined based on how developments unfold.”

An Iranian official threw cold water on the prospects of reaching a comprehensive peace deal in the coming days, telling Reuters that a temporary extension of the current ceasefire, set to expire Tuesday, would “create space for more talks on lifting sanctions on Iran and securing compensation for war damages.”

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“In exchange, Iran will provide assurances to the international community about the peaceful nature of its nuclear program,” the official said, adding that “any other narrative about the ongoing talks is a misrepresentation of the situation.”

Trump told reporters Friday that the talks will continue through the weekend.

While Trump claimed there aren’t “too many significant differences” remaining, he said the United States would continue the blockade until negotiations are finalized and formalized.

“When the agreement is signed, the blockade ends,” the president told reporters in Phoenix.

Times staff writer Ana Ceballos contributed to this report.

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Read the Supreme Court’s Shadow Papers

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Read the Supreme Court’s Shadow Papers

CHAMBERS OF

JUSTICE ELENA KAGAN

Supreme Court of the United States Washington, D. C. 20343

February 7, 2016

Memorandum to the Conference

Re: 15A773 West Virginia, et al. v. EPA, et al.
15A776 Basin Elec. Power Cooperative, et al. v. EPA, et al. 15A787 Chamber of Commerce, et al. v. EPA, et al.
15A778 Murray Energy Corp., et al. v. EPA, et al.

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15A793 North Dakota v. EPA, et al.

I agree with Steve that we should direct the States to seek an extension from the EPA before asking this Court to intervene. We could also include, at the end of such an order, language along the lines of the following, to encourage the D. C. Circuit to act expeditiously in its resolution of this matter: “In light of that court’s agreement to consider this case on an expedited schedule, we are confident that it will [or even: we urge it to] render a decision with appropriate dispatch.” See Doe v. Gonzales, 546 U. S. 1301, 1308 (2005) (GINSBURG, J., in chambers); Kemp v. Smith, 463 U. S. 1344, 1345 (1983) (Powell, J., in chambers); Holtzman v. Schlesinger, 414 U. S. 1304, 1305, n. 2 (1973) (Marshall, J., in chambers).

The unique nature of the relief sought in these applications gives me real pause. The applicants ask us to enjoin a regulation pending initial review in the court of appeals. As we often say, “we are a court of review, not of first view.” See Cutter v. Wilkinson, 544 U. S. 709, 718 n. 7 (2005); cf. Doe, 546 U. S., at 1308 (“Re- spect for the assessment of the Court of Appeals is especially warranted when that court is proceeding to adjudication on the merits with due expedition.”). As far as I can tell, it would be unprecedented for us to second-guess the D. C. Circuit’s deci sion that a stay is not warranted, without the benefit of full briefing or a prior judi- cial decision.

On the merits, this is a difficult case involving a complex statutory and regu- latory regime. Although the parties’ abbreviated discussion of the issues at stake here makes it difficult for me to determine with any confidence which side is likely to ultimately prevail, it seems to me that at this stage the government has the bet- ter of the arguments. The Chief’s memo focuses on the applicants’ argument that the “best system of emission reduction” refers “solely [to] installation of control technologies (e.g., scrubbers).” 2/5 Memo, at 2. The ordinary meaning of “system” is in fact quite broad, appearing to encompass what EPA has done here. Of course, we would want to consider this term in the larger context of the Clean Air Act’s regula-

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