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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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Video: Reflecting Pool Turns Green, Paint Peels After Renovation

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Video: Reflecting Pool Turns Green, Paint Peels After Renovation

new video loaded: Reflecting Pool Turns Green, Paint Peels After Renovation

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Reflecting Pool Turns Green, Paint Peels After Renovation

Algae blooms have hit the Lincoln Memorial Reflecting Pool, which underwent a $14.2 million repair project. Blue paint appeared to be chipping from the bottom.

“The reflecting pool is greener than I have ever seen it before due to algae.” “I was expecting to see blue, but green is O.K.” “Honestly, I don’t think you can fight mother nature.”

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Algae blooms have hit the Lincoln Memorial Reflecting Pool, which underwent a $14.2 million repair project. Blue paint appeared to be chipping from the bottom.

By Julie Yoon, Jackeline Luna and Alisa Shodiyev Kaff

June 19, 2026

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Top GOP lawmaker rallies around conservative school board member facing calls to resign

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Top GOP lawmaker rallies around conservative school board member facing calls to resign

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House GOP Conference Chairwoman Lisa McClain, R-Mich., rebuked a school board in Richmond, Michigan, after some of its members tried to remove a conservative colleague for missing meetings while on military deployment to the Middle East.

Ray Stier, who received an American flag and a copy of the Congressional Record from McClain on Thursday as a commendation of his work, had been on deployment, attending board meetings remotely, but eventually lost virtual access.

That’s when the board called for his removal, citing a “disservice” caused by his absence.

“One of the board members’ family was taking to social media and putting out misinformation about myself and my wife and things that were not factually accurate and then ultimately calling for my resignation and prompting others to reach out to the district to call for my recall,” Stier recounted.

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PARENTS SAY THEY’RE RUNNING FOR LOCAL SCHOOL BOARDS TO FIGHT ‘POISONOUS’ CRITICAL RACE THEORY

House GOP Conference Chairwoman Lisa McClain, R-Mich., left, pictured alongside Ray Stier, a school board member in Richmond, Michigan. (Andrew Harnik/Getty Images; office of Lisa McClain)

The moment is just the most recent clash between Republicans and school boards over policies that, in their view, are gatekeeping schools against diversity of thought and accountability.

“I think education is extremely important and vital,” McClain told Fox News Digital.

“And educators and administrators need to teach children how to think, not what to think. It’s about time that administrators begin to get held accountable for their actions. Good actions and bad actions.”

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McClain’s meeting with Stier comes on the heels of a congressional hearing last week where she grilled a superintendent from Virginia over student privacy policy, probing if those policies were being unevenly applied to favor transgender students.

VIRGINIA SCHOOL DISTRICT SLAPPED WITH COMPLAINT ALLEGING NEW CLAIMS IN VIRAL TRANS LOCKER ROOM FIGHT

Rep. Lisa McClain, R-Mich., leaves a House Republican Conference meeting at the Capitol Hill Club on Feb. 28, 2023. (Tom Williams/ CQ Roll Call via Getty Images)

“The victims got a 10-day suspension and the biological female that did the filming got a one-day suspension,” McClain said, referring to an incident at Stone Bridge High School in Loudoun County where students had been reprimanded for filming in a locker room.

“How does that make sense?”

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In Stier’s case, McClain questioned whether the board had targeted Stier on account of just his deployment overseas. Stierhad clashed with the board after learning that some of the district’s bathroom policies would have allowed fourth-grade students to use the same bathroom as transgender eighth-grade boys.

“Prior to him filling the seat, the seat was open for two months,” McClain observed. So that logical argument doesn’t exactly make sense to me; it doesn’t really hold a lot of water.”

MICHIGAN PARENT WANTS TRUMP TO ACT AFTER DAUGHTER SHARES LOCKER ROOM WITH TRANS-ATHLETE

House GOP Conference Chairwoman Lisa McClain, R-Mich., left, pictured alongside Richmond, Michigan school board member Ray Stier right. (Office of Lisa McClain)

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For his own part, Stier believes his case will refocus attention on the importance of the school board and its membership.

“My goal is to continue being an advocate for the community. One of the good things that I think came out of this was that it got so much attention that some of the community members who were unaware of the dynamics that were not being brought to light,” Stier said.  

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Political watchdog fines Newsom for failing to report $5.5M in solicited donations on time

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Political watchdog fines Newsom for failing to report .5M in solicited donations on time

California’s political watchdog commission on Thursday finalized a $31,500 fine against Gov. Gavin Newsom, alleging that the Democratic leader failed to report three dozen behested payments totaling $5.5 million mostly to support wildfire recovery by the deadline under state law.

The Political Reform Act requires elected officials to disclose payments of $5,000 or more that they solicit or direct others to give to a charitable, legislative or governmental purpose within 30 days.

The California Fair Political Practices Commission said 34 of the violations were for failing to report on time that Newsom and his staff directed outreach from companies and foundations that wanted to help after the Los Angeles wildfires to the California Fire Foundation. The nonprofit was started in 1987 by the California Professional Firefighters to support the families of fallen firefighters and communities impacted by fire.

The donations include $1 million from the Chuck Lorre Foundation and $500,000 apiece from Lockheed Martin, the Anthem Blue Cross Foundation and BlackRock, among others gifts.

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The governor also failed in 2024 to report on time two behested payments, totaling $100,000 from the Schmidt Family Foundation and Schwab Charitable Funds to the Institute for Local Government, a nonprofit within the League of California Cities.

The commission said the governor reported all of the payments “prior to public discovery” or contact from its enforcement division, which it considered a mitigating factor. Newsom also signed the stipulation and agreed to the fine.

Tara Gallegos, a spokesperson for Newsom’s office, said the issue involved late paperwork at a time when the governor’s staff was focused on emergency response and supporting survivors. She also underscored the fact that the reports were filed before he was contact by the FPPC.

Gallegos said the fine is unrelated to an alleged investigation into the governor and his wife by the Department of Justice, which Newsom announced this week.

Newsom alleged Monday that Trump is using the government as a political weapon to target him and his wife, Jennifer Siebel Newsom. Newsom announced the investigation after he learned that the FBI and Internal Revenue Service asked his associates questions about nonprofits and businesses related to the couple.

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The governor’s office characterized the investigation as a fishing expedition. The Trump administration declined to comment.

A source familiar with the matter, who requested anonymity because they were not authorized to discuss it publicly, said two federal probes have been going on for about a year, and that they originated not from Washington, D.C., but from conversations between whistleblowers and federal prosecutors based in Sacramento. The probes are linked to Newsom’s former chief-of-staff, Dana Williamson, and Siebel Newsom’s taxes, the source said.

The FPPC violations mark the second time Newsom has reported payments late, which increased his penalty for the new infractions. The commission fined Newsom in 2024 for failing to timely report 18 payments totaling $14.4 million.

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