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Free AccessGOP Fires Starting Gun On FY25 With Numbers Likely To Lead To CR In Sept
House Appropriations Committee Chair Tom Cole (R-OK) yesterday released his USD$1.6 trillion interim allocation for FY25, which includes a major (6%) cut to non-defence spending and a boost to the Pentagon and DHS. The non-defence numbers, which fall well below acceptable levels for the Senate and White House, are near-certain to lead to a Continuing Resolution to punt federal government funding beyond the general election.
- Punchbowl News reports: “Based upon what we’re hearing so far — and it’s very early — things aren’t great. Part of the reason is that House Republicans hope Donald Trump wins the presidency on Nov. 5 so that he can dictate what these bills look like.”
- Rep. Rosa DeLauro (D-CT), ranking Democrat on Appropriations, countered that Cole’s allocation falls well short of the Fiscal Responsibility Act which dictates a 1% increase in both defence and non-defence spending.
- DeLauro: “House Republicans know that these delay tactics amount to a sham process that overpromises to their most extreme Members and leads us from one continuing resolution to another, or worse, a shutdown.”
- Cole said: “It’s an opening position in negotiations, the way you always start. If somebody above me wants to do side deals later on down the line, that’s up to them.”
- Punchbowl notes: “…a CR with a February end date would give Trump — if he wins on Nov. 5 — the chance to weigh in on the issue. This would undermine Democrats’ ability to push for more domestic spending.”
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.