Capitol Hill Update
March 19, 2024
Last week, the swift House passage of the TikTok bill dominated headlines as negotiations continued on spending, border policy, and foreign aid funding.
Why it matters: Congress has funded half the government through September with the balance coming due this Friday, March 22. Late Monday night, the White House and Speaker Johnson came to an agreement on the last pieces of the funding bill.
The big picture: The second half of government funding includes thorny issues like Homeland Security and Defense. Some Republicans want to push back on the Biden Administration’s policies using the power of the purse.
- Over the weekend, Republicans rejected a Democratic offer of an additional $1.5 billion for the border. White House officials say the GOP’s proposed funding levels will cripple border security.
- But negotiators reached an agreement late Monday on Homeland Security funding through September.
- Timing is now the key issue. While a deal could still collapse amid partisan pushback, House leadership has a self-imposed 72 hour rule to provide legislative text before voting. That could push action on the bill past the March 22 into Saturday.
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HUD Secretary Out: Marcia Fudge, Secretary of Housing and Urban Development, announced early last week she will resign on March 22. While the sudden announcement came as a surprise, Biden praised her efforts to make housing more affordable.
- Deputy HUD Secretary Adrianne Todman will serve as acting secretary until the vacancy is filled. However, the White House is considering leaving the permanent position vacant.
- Senate Banking Chairman Sherrod Brown (D-OH) and other senior committee Democrats are urging Biden to nominate a replacement.
- Biden’s cabinet has been remarkably stable. Former Labor Secretary Marty Walsh stepped down last year, and Fudge’s departure will be only the second of the 15 cabinet secretaries.
House Financial Services Committee Leadership Race: Punchbowl News reported over the weekend that Rep. French Hill (R-AR) announced he is running to succeed Chairman Patrick McHenry (R-NC) after he retires.
- Hill is the current Vice Chair of the committee and chair of the cryptocurrency subcommittee. He has been in Congress since 2015, has private-sector banking experience, and served in economic policy roles in the White House, Treasury, and Senate Banking Committee.
- Rep. Hill joins Rep. Andy Barr (R-KY) and Rep. Bill Huizenga (R-MI) in running for the gavel. The outcome will be decided by the Republican Steering Committee after the November elections. The Steering Committee comprises House GOP leadership and geographical representations.
- McHenry’s successor would be the Chairman or the Ranking Member, depending on who wins the House. The Steering Committee membership could shift if Democrats retake the House, so predicting the outcome at this stage is very inside baseball.
TikTok Tic-Tac-Toe: The House moved swiftly to pass a bill to divest social media giant TikTok from Chinese ownership on concerns regarding the Chinese government’s control over the app and user data.
- While the bill passed 352-65 with one present, TikTok users decried the move as a ban on the app. Those opposed included 50 Democrats and 15 Republicans who objected on a variety of grounds including the fast timeline, the precedent, and free speech concerns.
- Speaker Emerita Nancy Pelosi (D-CA), among others, defended the move as divestment and not a ban. “This is not an attempt to ban TikTok. It's an attempt to make TikTok better. Tic-tac-toe, a winner.”
- Senate action is unclear, though President Biden has said he will sign the bill.
Contact David McCarthy (dmccarthy@crefc.org) with questions.