Legislative casualties of U.S. Congress’s budget fight are emerging. Republican House Speaker Kevin McCarthy appeased further-right members of his caucus on Wednesday, agreeing to cut 2024 spending levels roughly $60 billion below what he previously agreed with President Joe Biden. His caving to extreme members of the party augurs poorly for measures like Ukraine aid and cannabis banking.
Congress is set to consider a handful of broadly popular bills later this year. The Senate Banking Committee scheduled a Sept. 27 vote on a bill that would open basic financial services to cannabis firms. Both chambers have several crypto-focused bills in the hopper. Biden is also hoping lawmakers can pass $26 billion for Ukraine support.
All of those proposals need bipartisan backing. For McCarthy, that means getting party members to be moderate – an occurrence that has never been pleasant in Washington, but possible.
Yet just five hardline conservatives forced McCarthy to change his mind. Republicans including Representative Matt Gaetz and Representative Andy Biggs have already denied calls for new Ukraine aid. Others oppose regulation that could help both cannabis and crypto. By siding with further-right members, McCarthy gives them more power to hold the line. (By Ben Winck)
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