With less than two weeks left before federal spending laws expire, Congress is scrambling to prevent a government shutdown. However, negotiations have hit a major roadblock due to a dispute over President Donald Trump’s effort to expand executive powers, which lawmakers argue violates the Constitution.
Political Standoff Threatens Government Shutdown
Republican negotiators walked away from discussions over the weekend, leaving an unresolved debate about how much the federal government should spend for the rest of the 2025 fiscal year, which ends on September 30. While this number is important, Democrats insist it means little if Trump refuses to follow legal spending requirements. They fear that if given unchecked authority, the president could empower billionaire Elon Musk and his U.S. DOGE Service to cancel federal contracts at will, potentially leading to mass layoffs of federal employees.
At the heart of the dispute is Trump’s claim—echoed by his advisers, including budget chief Russell Vought—that the president has the authority to withhold funds that Congress has allocated. They argue that a post-Watergate law, the 1974 Impoundment Control Act, which limits this power, is unconstitutional. Meanwhile, Musk’s DOGE team has already been unilaterally terminating federal contracts and reducing staff, exacerbating tensions.
Democrats Demand Spending Guarantees
Democrats are now seeking firm assurances from both congressional Republicans and the White House that any funding agreement will be honored.
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Rep. Rosa DeLauro (D-Connecticut), a key Democratic negotiator, accused the administration of siphoning off funds meant for American families and businesses.
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Sen. Brian Schatz (D-Hawaii) firmly rejected the idea of allowing Trump to disregard spending laws, emphasizing that the Impoundment Control Act remains in effect and has been upheld by courts.
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Sen. Chris Murphy (D-Connecticut) warned that Trump’s refusal to follow the law could lead to court battles. "He’s violating the law now and he’s going to violate the law later," Murphy said.
The impasse has lawmakers considering a long-term continuing resolution (CR), which would maintain government funding at current levels through the fiscal year. However, even this measure would not prevent Trump from withholding funds in defiance of congressional intent.
Trump and Musk Defend Cuts as “Waste Reduction”
On the other side of the aisle, Trump and his supporters argue that their actions are necessary to eliminate wasteful spending.
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"Money is just being pilfered. They’re stealing funds that are supposed to go to American families and businesses," DeLauro argued.
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Trump and Musk claim that cutting jobs and canceling contracts are necessary measures to ensure efficiency.
House Speaker Mike Johnson (R-Louisiana) dismissed Democrats’ demands, calling them a “gross separation of powers violation and a terrible precedent for Congress to engage in.” He insisted that Republicans would not accept any restrictions on the president’s spending power.
House Appropriations Committee Chairman Tom Cole (R-Oklahoma) took a more measured approach, reminding Democrats that with both chambers of Congress under Republican control, it is unlikely that lawmakers will impose spending limits on a Republican president.
GOP Internal Struggles Further Complicate Matters
Despite their majority, House Republicans are struggling with internal divisions. Some members have threatened to oppose any spending deal that does not include significant budget cuts. For example:
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Rep. Warren Davidson (R-Ohio) recently announced his opposition to a GOP budget proposal, arguing that it did not go far enough in reducing federal spending.
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Even within the Senate, where Republicans hold a slim majority, they lack the 60 votes needed to overcome a Democratic filibuster, giving Democrats significant leverage in negotiations.
What’s Next?
The situation remains fluid, with both sides refusing to back down.
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Trump is expected to address a joint session of Congress to reinforce his stance.
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Republicans hope to incorporate Musk’s DOGE spending cuts into law, making some of the layoffs and contract terminations permanent.
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Democrats, however, insist that Congress must retain its constitutional authority over federal spending, with some prepared to go to court if necessary.
House Speaker Johnson summed up the Republican position succinctly, saying, “It would not make sense to appropriate funds to divisions of an agency that doesn’t exist anymore, right?”
As the deadline approaches, the question remains: Will Congress reach a deal, or is the nation headed for yet another government shutdown? One thing is certain—this battle over power, spending, and accountability is far from over.
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