Senators on both sides of the aisle are quietly hopeful about avoiding a third government shutdown this year. Why it matters: Time is short, patience is wearing thin and neither party wants to head into the campaign's final sprint under the cloud of a funding lapse."People understand that it would be helpful to have a [continuing resolution] that extends beyond the election," Sen. Jeanne Shaheen (D-N.H.) told Axios.
"So it doesn't get all bound up in partisan discussions around the elections.""I just think everybody's trying to give ourselves room to find a bipartisan agreement, and we are not there yet," Sen. Brian Schatz (D-Hawaii) told Axios.Asked whether the vibes were positive, Schatz replied: "Not negative."Republicans were even more optimistic about a bipartisan CR."Perhaps we can get ours passed, and then when the House comes back the last week of August, they can pass it there," Sen. "I don't think there's going to be much controversy there, unless the Democrats change their minds."State of play: The House passed a short-term spending bill late Tuesday night.
Senate Majority Leader John Thune (R-S.D.) will essentially ignore it. For now.The same fate likely awaits the budget resolution Speaker Mike Johnson (R-La.) narrowly pushed through Wednesday afternoon on a 216-214 vote.The intrigue: House Republicans are still steaming over Thune's decision to declare, in advance, that he won't take up reconciliation until the government is funded."He's the leader of the Senate. I think it's a mistake to hold up such an important piece of legislation," House Budget Chair Jodey Arrington (R-Texas) told Axios.But his new Senate counterpart, Ron Johnson (R-Wisc.), appears far more comfortable with Thune's timeline and sequencing.
"With [Senate Appropriations Chair] Susan [Collins] apparently showing progress toward a CR — even talking about a defense supplemental in that agreement — that would, to a certain extent, negate having to do one," Johnson said, referring to a separate reconciliation package.What to watch: There's no guarantee a major news event won't derail bipartisan funding talks, just as Medicaid cuts and the ICE shootings did earlier this year.President Trump's escalation of the conflict with Iran is already complicating defense spending negotiations, with Democrats largely opposed and Republicans split over the scope o… Senate Republicans are warming to the idea of using a third reconciliation package to replenish the Pentagon's depleted weapons stocks.Why it matters: They still view reconciliation 3.0 as Plan B.For now, though, they're willing to let House Speaker Mike Johnson (R-La.) attempt the legislative equivalent of a triple axel: passing a rule, a short-term government funding bill and a budget resolution to unlock reconciliation."The tale of the tape is going to be what the House can do," Sen. Shelley Moore Capito (R-W.Va.) said.
It's not offset, so I think there's going to be some troubled water there."But Republican senators aren't slamming the door on Johnson's plan, looking to keep Senate options open. "It's pretty clear that [Senate Minority Leader Chuck] Schumer would like to play shutdown politics," Sen. "So I don't have any problem with using reconciliation for that.""But beyond that, it gets pretty narrow, what I'd be willing to support."Driving the news: President Trump is ramping up pressure on House Republicans to support the budget resolution ahead of a pivotal week on Capitol Hill."I am asking all House Republicans to VOTE YES this week on the Budget Resolution, which is an important first step towards getting a Budget Bill," Trump wrote Monday on Truth Social.
Office of Management and Budget Director Russ Vought will try to close the deal at the Republican conference Tuesday.The move is a clear signal the administration wants a fallback plan if the normal appropriations process isn't done by Oct. 1 — which looks increasingly likely.Meanwhile, Defense Secretary Pete Hegseth will testify before the Senate Appropriations Committee on Tuesday to defend the administration's supplemental funding request, including tens of billions of dollars to replenish munitions used in Iran.Between the lines: Senate Majority Leader John Thune is cautioning that reconciliation 3.0 still faces a steep climb, even if it clears the House."Easier said than done," Thune (R-S.D.) told reporters.And not every Senate Republican is on board."I am not a big fan of reconciliation whether it's 1.0, 2.0 or 3.0," Sen. Lisa Murkowski (R-Alaska) said.Zoom in: The White House has sent a list of spending anomalies to appropriators — a necessary step for Congress and OMB to advance a short-term continuing…
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