House Stopgap Failure Forces Plan B: What to Know in Washington

Speaker Mike Johnson’s plan to fund the government got two bipartisan thumbs down on the House floor. But first, you should know:

• Kamala Harris and Donald Trump both want to capitalize on the Federal Reserve’s first interest rate cut in over four years.
• Harris edged ahead of Trump 50%-48% in a national poll published by Fox News.
• The House passed bills targeting ESG investing in retirement accounts as Republicans rail against “woke” policies.

House Rejects Stopgap Bill as Johnson Eyes Plan B

House Republicans failed to pass a stopgap funding bill to avert an Oct. 1 shutdown, forcing leaders to seek an alternative with less than two weeks before the deadline.

The bill failed in a 202–220 vote, with 14 Republicans opposing it and 2 voting present. Democratic Reps. Don Davis (N.C.), Jared Golden (Maine), Marie Gluesenkamp Perez (Wash.) supported the measure.

Democrats panned the partisan bill and some Republicans criticized the length of the stopgap, which would’ve funded the government through March 28, 2025. Top appropriators floated Dec. 13 or Dec. 20 as alternative end dates.

Donald Trump pressured Speaker Mike Johnson (R-La.), writing on Truth Social that Republicans should oppose any government-funding stopgap unless they “get the SAVE Act, and every ounce of it.” Trump’s push for the rider Johnson tacked onto the CR requires proof of citizenship from voters.

All eyes will turn towards Johnson’s next move and whether the Senate will take the lead. The bill’s failure means the speaker has no choice but to craft a plan B. Top Republican appropriators said they favor a stopgap running into December, setting the stage for negotiations during the lame-duck session. Read More

Read BGOV’s Congress Tracker for the complete breakdown of lawmaker’s daily legislative agenda and the politics driving it.

Editor’s Picks

Oprah Brings Star Power to Mobilize Swing-State Harris Voters

The billionaire media icon will join Vice President Kamala Harris in a live-streamed town hall in Michigan on Thursday, an effort to get out the vote as some states begin distributing absentee and early ballots this month and to potentially sway undecided voters.

Trump to Visit Springfield After Unfounded Pet-Eating Claims

Donald Trump said he plans to visit two towns that have become flashpoints in the national debate over immigration and the center of unfounded conspiracy theories the former president has promoted about migrants.

Trump Pledges to Restore SALT Write-Off at Long Island Rally

Donald Trump pledged to lift a cap on the state and local tax deduction valuable to many New York homeowners that he imposed as president.

Harris Ahead of Trump 50%-48% in Fox News National Poll

Kamala Harris edges ahead of Donald Trump 50% to 48% in a national poll of registered voters published by Fox News.

Tying Labor Plans to Public Cash Will Cost Biden, Industry Warns

A top labor official says employers should go beyond the Biden administration’s new wage and labor requirements on federal infrastructure and green energy projects, setting up a potential clash with construction industry groups who complain the rules will shut out certain businesses.

More Happening on the Hill

Anti-ESG 401(k) Republican Bills Package Passed by the House

The US House of Representatives passed a package of bills targeting environmental, social, and governance investing in retirement accounts as Republicans rail against so-called “woke” policies.

China’s Failing US Lobby Playbook Puts Tech Companies at Risk

US lawmakers are signaling to China that the world’s second-largest economy and its companies face a tough slog in America for the foreseeable future, regardless of who controls Washington after the November election.

Microsoft Executive Warns of Election Meddling in Final 48 Hours

Microsoft Corp. President Brad Smith warned the danger of foreign interference in the US election will surge in the final two days of the presidential campaign.

Bill Extending Telehealth Waivers Advanced by House Panel

A bill that would extend several telehealth regulatory flexibilities implemented during the Covid-19 pandemic advanced through a key House committee with bipartisan support.

Trump, Harris Angle for Political Edge From Fed Rate Cut

Vice President Kamala Harris hailed the Federal Reserve’s interest rate cut as a boon for middle class families while Trump suggested it was politically motivated.

The heated rhetoric over the Fed’s decision to lower its benchmark interest rate by a half percentage point highlighted how the central bank could sway the presidential race momentum with seven weeks until Election Day.

Trump framed the cut as a “very unusual number” and bad for Harris, whatever the Fed’s motivation, during a Manhattan campaign stop.

• “I guess it shows the economy is very bad, to cut it by that much, assuming they’re not just playing politics,” Trump said.

Harris said it was “welcome news for Americans who have borne the brunt of high prices.” Her statement betrayed the extent to which inflation, which hit households hard and soured voter perceptions of President Joe Biden’s handling of the economy, is one of her top political liabilities.

• “I know prices are still too high for many middle class and working families, and my top priority as President will be to lower the costs of everyday needs like health care, housing, and groceries,” Harris added.

The economy and rates are a focal point in the race, and both parties want to use the move to bolster their election standing. Read More

Biden, meanwhile, will celebrate the Federal Reserve’s decision to slash interest rates as a validation of his economic vision during an address today at the Economic Club of Washington alongside Carlyle Group co-founder David Rubenstein. Read More

What Else We’re Reading

Harris Plans Meeting With Zelenskiy in Washington Next Week

Kamala Harris plans to meet with Ukrainian President Volodomyr Zelenskiy in Washington next week, according to a person familiar with the matter, as the Democratic nominee tries to broaden her foreign policy profile.

Why Kamala Harris Isn’t Talking About Climate Change

In just over six weeks, Americans will cast their votes in an election with enormous stakes for the planet. Vice President Kamala Harris and former President Donald Trump are offering very different visions of American climate policy: The former wants to build on the Inflation Reduction Act and other Biden initiatives, while the latter has made clear his plan to dismantle them.

US Says Iranian Hackers Sent Trump Information to Biden Camp

US authorities on Wednesday accused Iranian hackers of emailing stolen information from Donald Trump’s presidential campaign to President Joe Biden’s campaign team, as well as to journalists.

Upcoming Webinar: Elections Q&A

Elections Q&A with Greg Giroux: Join us for a webinar with BGOV elections expert Greg Giroux at 11 a.m. on Sept. 25. The event will provide an in-depth analysis of how the presidential race is affecting congressional races, ballot measures, and other key aspects of the electoral landscape. Register Here

• Miss our Tax Webinar? Catch up on how tax policy will likely shake out, including key players, major areas of dispute, and how the election could shape the outcome. Read a Recap and Watch the Recording Here

To contact the reporter on this story: Giuseppe Macri in Washington at gmacri@bgov.com

To contact the editors responsible for this story: Kayla Sharpe at ksharpe@bloombergindustry.com; Jeannie Baumann at jbaumann@bloombergindustry.com