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Evening Report — Shutdown drama unfolds amid recession fears
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The latest in politics and policy. Direct to your inbox. Sign up for the Evening Report newsletter Subscribe *{box-sizing:border-box}body{margin:0;padding:0}a[x-apple-data-detectors]{color:inherit!important;text-decoration:inherit!important}#MessageViewBody a{color:inherit;text-decoration:none}p{line-height:inherit}.desktop_hide,.desktop_hide table{mso-hide:all;display:none;max-height:0;overflow:hidden}.image_block img div{display:none}sub,sup{font-size:75%;line-height:0} @media (max-width:620px){.image_block div.fullWidth{max-width:100%!important}.mobile_hide{display:none}.row-content{width:100%!important}.stack .column{width:100%;display:block}.mobile_hide{min-height:0;max-height:0;max-width:0;overflow:hidden;font-size:0}.desktop_hide,.desktop_hide table{display:table!important;max-height:none!important}} Presented by National Council on Aging — Congress is rushing to pass a continuing resolution to avoid a government shutdown.{beacon} @media (prefers-color-scheme: dark) { #thehillheader { background-color: #2a53c1 !important; color: white !important; } }Evening Report
TRUMP FIRST 100 DAYS
© Greg Nash
Government shutdown deadline approaches as trade war roils markets
CONGRESS IS RUSHING TO PASS a continuing resolution (CR) to avoid a government shutdown, as fallout from President Trump’s trade wars roil the financial markets and spark fears of a potential recession.
The shutdown fight will be an early test for Speaker Mike Johnson (R-La.) and Senate Majority Leader John Thune (R-S.D.), while intense scrutiny will fall on Senate Democrats over whether they’ll give the GOP the votes they need in the upper chamber to keep the lights on in Washington.
The House GOP’s stopgap bill, which was released over the weekend, would fund the government for six months, giving Republicans time to develop a long-term deal to implement Trump’s agenda of tax and spending cuts. The CR reduces government spending by $13 billion overall compared to 2024 levels, while increasing spending on defense and border security.
Trump is whipping the CR, declaring on Truth Social over the weekend that “NO DISSENT” is permissible.
Johnson will once again have to navigate the dynamics of a bare majority and an unpredictable caucus in the House.
Rep. Thomas Massie (R-Ky.) has already said he’ll vote against the temporary funding patch, giving Johnson almost no room for further defections. Several conservative hardliners remain undecided, although they all came around to pass the GOP’s budget resolution last month after getting phone calls from Trump.
In the Senate, most Republicans are expected to vote for the CR, with Sen. Rand Paul (R-Ky.) the lone potential holdout. At least seven or eight Senate Democrats will have to get on board to surpass the 60-vote threshold in the upper chamber.
Sen. John Fetterman (D-Pa.) is a yes, arguing that Democrats should not play with fire and potentially be blamed for a shutdown that could make it easier for Elon Musk to gut the federal workforce.
The House is expected to vote Tuesday on the CR, and the Senate is expected to vote Thursday. The government will shut down Friday if the CR doesn’t pass both chambers by then.
TARIFFS CHAOS ROILS MARKETS
The markets and economists don’t like the uncertainty around the escalating trade wars.
The government of Ontario on Monday slapped a 25 percent surcharge on electricity sold to 1.5 million homes and businesses in Michigan, Minnesota and New York.
That comes despite Trump last week providing carve-outs for most of the tariffs he applied to goods coming into the U.S. from Mexico and Canada. Over the weekend, Trump threatened an additional 250 percent levy on Canadian dairy.
China’s retaliatory tariffs targeting U.S. agriculture also hit Monday.
U.S. tariffs on steel and aluminum are expected to go into effect this week as planned, according to Commerce Secretary Howard Lutnick.
Stock market indices sold off again Monday, with the Nasdaq shedding about 4 percent and the Dow falling about 2 percent.
Republicans are growing nervous that Trump’s tariffs could harm the broader economy, as well as workers in their home states.
The Hill’s Alexander Bolton spoke with Sen. Rand Paul (R-Ky.):
“I have every major industry in Kentucky lobbying me against them: the cargo shippers, the farmers, the bourbon........© The Hill
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