In this episode, Rep. Matt Gaetz (R-GA) and Rep. Steve Israel (D-NJ) join me in the Rayburn House Office Building to discuss the ongoing government funding crisis and how to fix it.
00:00:56.240We are broadcasting from a chilly room 2021 in the Rayburn House office building here in our Capitol complex in Washington, D.C.
00:01:03.780It is not like my beloved Florida up here.
00:01:07.000But we've got a lot to discuss government funding.
00:01:09.420There's been an injunction issued against the pistol brace rule, and Washington, D.C. has gotten so crazy, even the Secret Service is having to endure the scourge of crime and carjackings because there are no consequences in Washington for criminal behavior.
00:01:25.680But first, let's get to this concept of the latter CR.
00:01:29.060You may have heard House Speaker Mike Johnson talk about it.
00:03:35.120If the speaker goes a different route, what would you do?
00:03:37.340So, the concept that we discussed today with the speaker is exciting because it breaks us from this theory that you have to take one vote on all of government to extend every agency for precisely the same duration of time.
00:03:52.040I think we can be more specific in the timelines and in the approaches.
00:03:55.920That's why I'm for single-subject spending bills.
00:03:58.200If we're able to get these bills we're working on this week passed, you're looking at around 80 percent of the federal budget that the House has approved funding for.
00:04:08.960But the Senate wants to always take up everything all at once for the same duration of time.
00:04:13.940The laddered approach that Speaker Johnson was socializing with members today, I think, gives us a lot of innovative opportunity to put downward pressure on spending.
00:04:23.420If it goes with a clean CR, then what?
00:04:27.780Will it cost him the speakership if he does that?
00:04:29.940Well, he never promised me he would, unlike the last guy.
00:04:32.720And remember, there's a big difference, right?
00:04:34.480Kevin McCarthy never wanted to get to single-subject spending bills.
00:04:38.160You know how your viewers can take great confidence in that?
00:04:40.860He only passed one in the first seven months.
00:04:43.500Mike Johnson passed one in the first, like, 36 hours, and we've been rolling through them.
00:04:48.200So I think there is a willingness to give a little more grace to Speaker Johnson than to Speaker McCarthy because he was fiddling as Rome was burning.
00:04:57.540I think Mike Johnson is trying to build us on a path to more fiscal sanity, and we want to support him in those efforts.
00:05:02.940We are back live, and the overwhelming sentiment from the comments on the live stream is that we should not have a government funding bill that does not secure the border.
00:05:15.600It should be either secure the border or shut down the government according to the overwhelming sentiment that we are receiving.
00:05:23.680But follow me here on the latter concept.
00:05:26.120So a latter concept that is clean is a bad idea because it doesn't sufficiently do the border work that we've been talking about, and it doesn't sufficiently cut spending.
00:05:39.680You see, the concept that we are fighting against is this notion that all of government gets voted on all at once for one big up-or-down vote to extend every agency for the same duration of time.
00:05:54.940With a latter, the good news is that you're able to cleave the important stuff that we all agree on that's bipartisan,
00:06:01.640paying our troops, paying our border patrol, ensuring that people still get their IRS refunds and their Social Security checks.
00:06:08.780You do that, and then you set on shorter ladders different features of government that have to have itemized review.
00:06:16.040I'm thinking notably the DOJ, a lot of the parts of the Department of Homeland Security, the Department of State.
00:06:22.440You set those on shorter ladders, and then you're able to really zero in on what those entities of government are doing.
00:06:29.240So a ladder is good, a ladder without the spending cuts, without the border stuff, without defanging the weaponization of government, not sufficient at this time.
00:06:40.220And certainly the addition of the farm bill extender puts us in, I think, a real bad stead when trying to get to single-subject spending bills.
00:06:51.100One reason this is so important, we've just gotten fresh off of a report from House Budget Committee Chairman Jody Arrington,
00:07:00.120a ratings change from Moody's Investor Services, this from New York on November 10th.
00:07:07.000Moody's today has changed the outlook on the government of the United States of America's rating to negative from stable,
00:07:15.020and affirmed the long-term issuer of senior unsecured ratings at AAA.
00:07:21.960The key driver of the outlook change to negative is Moody's assessment that the downside risks to the U.S. fiscal strength have increased
00:07:34.180and may no longer be fully offset by the sovereign's unique credit strengths.
00:07:40.160Current political polarization within Congress raises the risk that successive governments will not be able to reach consensus
00:07:47.860on a fiscal plan to slow the decline in debt affordability.
00:07:53.720The sharp rise in U.S. Treasury bond yields this year has increased the pre-existing pressure on U.S. debt affordability.
00:08:00.300In the absence of policy action, Moody's expects the U.S. debt affordability to decline further, steadily, and significantly
00:08:08.800to very weak levels compared to other highly rated sovereigns.
00:11:45.040If the ethics committee never does anything to Gates, then Gates was successful in stopping probably what rightfully should come to him.
00:11:52.420But going through the three weeks and then taking down a Steve Scalise, a Jim Jordan, a Tom Emmer,
00:11:59.760all people who are really prepared to do the job, that was frustrating for me.
00:12:04.580We are back live, and it is hard to ever present to you a clip that would have more projection than what we just showed from Speaker McCarthy.
00:12:15.400Let's start with this assessment that it was the conference that took down Steve Scalise and Jim Jordan and Tom Emmer.
00:12:24.040Steve Scalise knows that it was Kevin McCarthy who blocked him.
00:12:28.800That's why Steve Scalise did so much to ensure that we were able to elect Mike Johnson, even though Kevin McCarthy was attempting a comeback.
00:12:37.400So Emmer, Jordan, Scalise, you see, it didn't matter who it was, and it didn't matter what the ideology was, conservative, moderate, liberal.
00:12:48.640McCarthy was just working to try to sabotage everyone, and he couldn't figure out a way to sabotage Mike Johnson.
00:12:55.280And then he says this is all about some sort of ethics issue that I have.
00:12:59.580I'm just an ethically challenged person.
00:13:01.500It's not that Kevin couldn't keep his deal.
00:13:03.740Well, what's the explanation for everyone else then?
00:13:07.460Did the seven other people who voted with me also have ethics problems when we removed McCarthy?
00:13:12.980Or how about in the final vote before Mike Johnson was ultimately designated?
00:13:19.460When Kevin McCarthy had done everything to summon his lieutenants and marshal the last bit of loyalty people might feel to him
00:13:28.800for all the special interest money he distributed to them,
00:23:46.760Representative Jason Smith, Republican of Missouri,
00:23:49.940joined his close friend Aaron Schock on campaign and government trips and exotic vacations.
00:23:56.400In 2014, that began by being scrutinized by federal investigators looking into the alleged spending abuses by the former congressman who resigned.
00:24:07.500Revelations that Smith, accompanying Schock on the campaign trip, came as well.
00:24:14.060The Hill reported that Smith has hired Schock's former chief of staff, Mark Roman,
00:24:19.720who managed the congressman's office at the time of the spending scandal.
00:24:23.180There's no indication that federal prosecutors have questioned or sought records from Smith,
00:24:27.760but his participation on trips now under criminal investigation could drag one of Schock's closest friends in Congress
00:24:34.920into his legal mess and undermine Smith's political image as a humble, salt-of-the-earth fiscal conservative.
00:24:42.320The news has also led to chatter on Capitol Hill, where Roman's hiring by Smith surprised many.
00:24:48.460The story also reported on a trip that Smith took with Schock to Brazil,
00:24:54.660along with two other House members, most of which was paid for by the Brazilian government.
00:24:59.220But after the official business, The Hill reports,
00:25:02.280Schock, Smith, and several of their male aides
00:25:06.040headed to the Brazilian beach town of Canoa Cabodera,