Close
Thank you for signing up!
Subscribe to more newsletters here
The latest in politics and policy. Direct to your inbox. Sign up for the Evening Report newsletter Subscribe Presented by National Council on Aging — Congress is rushing to pass a continuing resolution to avoid a government shutdown.{beacon} 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 manufacturers, the homebuilders, the home sellers — you name it — fence manufacturers,” Paul said.“The bourbon industry says they’re still hurt from the retaliatory tariffs [from Trump’s first term]. So do the farmers.”
Trump’s own words in an interview over the weekend did little to calm markets.
“I hate to predict things like that,” Trump said when asked by Fox’s Maria Bartiromo if he expects a recession this year.
Trump has acknowledged there will be some economic pain from the tariffs, but he described it as a “period of transition” to Bartiromo.
Lutnick sought to nix talk of a recession in a Sunday interview with NBC News’ “Meet the Press.”
“There’s going to be no recession in America,” Lutnick said.
“Will there be distortions? Of course. Foreign goods may get a little more expensive, but American goods are going to get cheaper, and you're going to be helping Americans by buying American.”
CANADA ELECTS NEW PRIME MINISTER
Canada’s Liberal Party elected former central banker Mark Carney as its new leader amid escalating tensions with the U.S.
Carney, who will be sworn in to replace Prime Minister Justin Trudeau in the coming days, has talked tough on dealing with Trump and the U.S.
“There is someone who is trying to weaken our economy,” he said. “Donald Trump, as we know, has put unjustified tariffs on what we build, on what we sell and how we make a living. He’s attacking Canadian families, workers and businesses and we cannot let him succeed and we won’t.”
Carney will face Conservative Party Leader Pierre Poilievre, with national elections expected to be called in the coming days or weeks.
Trudeau appeared headed for a massive defeat before he made the decision to step aside, but his Liberal Party has since rallied in the polls amid the fighting with Trump.
?Perspectives:
• The Wall Street Journal: A shutdown test for Republicans.
• The Liberal Patriot: Cracks in Trump’s floor start with the economy.
• The Guardian: Canadians believe Carney will stand up to Trump.
Read more:
• Johnson looks to pass stopgap as government shutdown deadline looms.
• 3 groups to watch in the final push to fund the government.
• Trump-district Democrats face risky vote on GOP spending bill.
• Mexicans rally with president to celebrate US decision to delay tariffs.
• What to know about Mark Carney, elected next Canadian prime minister.
CATCH UP QUICK
President Trump says the arrest of a Columbia University student who led pro-Palestinian protests would be the first “of many to come.” U.S. Immigration and Customs Enforcement arrested Mahmoud Khalil, a green card-holding graduate student, over the weekend.
The Supreme Court will review a challenge to a law in Colorado banning mental health care providers from engaging minors in conversion therapy.
Roundup: Rubio to Saudi Arabia for Ukraine talks
Secretary of State Marco Rubio and other U.S. officials are expected to meet with their Ukrainian counterparts Wednesday in Saudi Arabia to begin formulating the framework for a peace deal with Russia.
Ukrainian President Volodymyr Zelensky is not expected to be in attendance, though there are signs that his relationship with President Trump is on the mend.
Trump said over the weekend he’s “just about” at the point where he’d consider lifting the pause on U.S. intelligence-sharing with Ukraine.
There is hope that the long-awaited minerals deal between the U.S. and Ukraine could be signed ahead of the summit.
It’s a busy week for Rubio, who will travel from Saudi Arabia to Canada for the Group of Seven meetings, where tariffs are certain to dominate the discourse.
There have been reports of tension between Rubio and Elon Musk.
However, Rubio thanked the Department of Government Efficiency (DOGE) on Monday, saying they’d come to an agreement to cancel 83 percent of the programs at the U.S. Agency for International Development (USAID).
“The 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States,” Rubio said. “In consultation with Congress, we intend for the remaining 18% of programs we are keeping (approximately 1000) to now be administered more effectively under the State Department. Thank you to DOGE and our hardworking staff who worked very long hours to achieve this overdue and historic reform.”
ELSEWHERE…
Trump’s envoy to the Middle East will take part in ceasefire talks between Israel and Hamas in Qatar this week.
Senior U.S. officials have been negotiating directly with Hamas, which the U.S. has long designated as a terrorist organization. NPR is reporting that Hamas is offering a truce with Israel that could last five to 10 years.
Trump's Middle East envoy Steve Witkoff says a deal to release of every hostage held by Hamas “could come together within weeks.”
Israel cut off electricity and aid to Gaza ahead of the latest round of negotiations.
?Perspectives:
• The Hill: Trump’s ‘Gaza Riviera’ — a profile in arrogance.
• The Atlantic: The tragic success of global Putinism.
• The Hill: The Roberts court is America’s last safeguard against Trump.
Read more:
• Trump turns screws on Zelensky heading into Jeddah talks.
• Iranian leader rejects Trump’s push for nuclear talks.
• Trump shifts tone on Musk as tensions rise with Cabinet.
• HHS sends employees a $25K voluntary buyout offer.
Stay Engaged
Someone forward this newsletter to you? Sign up to get your own copy: TheHill.com/Evening. Did I miss a story? Drop me a line. See you next time!
Read More Details
Finally We wish PressBee provided you with enough information of ( Evening Report — Shutdown drama unfolds amid recession fears )
Also on site :
- Country Legend Dolly Parton Sees Her 'Little Girl Dreams Come True'
- Western warning to Israel: Halt Gaza offensive or face sanctions
- 4th of July Flight Prices Are 10% Cheaper Than Last Year—Especially in These Popular Cities