Conservatives Celebrate ‘Significant’ Concession Wins During House Speaker Election

Rep. Matt Gaetz (R-Fla.) (L) talks to House Republican Leader Kevin McCarthy (R-Calif.) in the House Chamber during the fourth day of elections for speaker of the House at the U.S. Capitol Building in Washington, on Jan. 6, 2023. Anna Moneymaker/Getty Images

After several days, 15 rounds of voting, and tough negotiations with 20 holdout Republicans, Rep. Kevin McCarthy (R-Calif.) was sworn in as speaker of the House of Representatives shortly after midnight on Jan. 7. Conservative groups declared a victory after the speaker offered several concessions to holdouts, the majority of whom are members of the House Freedom Caucus.

Russ Vought, president of the conservative Center for Renewing America, released a statement on Jan. 9, calling the agreement “transformational in how the House of Representatives should be run.”

“It levels a body blow against the D.C. political cartel that colludes against the American people,” said Vought, who served as the previous budget director for former President Donald Trump.

Among the concessions was an agreement to propose a bill repealing previously approved funds for 87,000 additional Internal Revenue Service (IRS) agents. McCarthy promptly followed through on this promise with the House passing the Family and Small Business Taxpayer Protection Act on Monday evening, revoking funds that had been allocated through President Joe Biden’s Inflation Reduction Act.

David Williams, president of the right-leaning Taxpayer Protection Alliance, said it would be difficult to get the bill through the Senate, which is controlled by Democrats and moderate Republicans. Nonetheless, it is a “great first step” by the House.

“It shows that this is top of mind for Republicans, and, quite frankly, should be top of mind for Democrats and all Americans,” he told NTD’s Capitol Report. “We’re hoping that this is just the beginning to not only defund the IRS but bring more accountability to the agency.”

While conservatives celebrated, many on the left were not pleased.

Danielle Melfi, executive director of the policy advocate group Building Back Together, lambasted Republicans, saying the move is not about helping the working class. “It was about shielding wealthy tax cheats—pure and simple.”

The White House Office of Management and Budget released a statement stating: “This reckless bill would increase the deficit by nearly $115 billion over 10 years.”

Other bills included in the list pertain to immigration, abortion, and energy policy with respect to China. It remains unclear whether these bills will become law because the Democrats have a slim majority in the Senate.

‘Significant Victories’

House Republicans have committed to several measures that would drastically reduce the federal budget deficit, including a vow to balance the budget within 10 years and a refusal to raise the debt ceiling if their demands are not met by the Senate—an act that could risk a shutdown of the government.

“These are symbolic but also significant victories for financial common sense,” said the free market think tank The Committee to Unleash Prosperity, led by economist Steve Moore, in a newsletter responding to the budget proposals.

“A government that is spending more than $5 trillion a year on a completely dysfunctional government and then borrows $1.5 trillion to finance this pig trough is speeding ahead like a bullet train over a cliff to financial catastrophe,” Moore wrote.

Source: Manhattan Institute via The Committee to Unleash Prosperity

Critics have warned that defaulting on the federal debt could have catastrophic consequences.

“With the debt-ceiling issue, you’re talking about defaulting on the government’s full faith and credit,” Jim Dyer, senior consultant to law firm Baker Donelson, told The Hill on Tuesday. “I don’t know how you can do any greater harm to this country than doing that.”

Proponents, such as Moore, see the debt ceiling as a crucial bargaining chip and applauded McCarthy for having the courage to wield it. “House Republicans are being smart and strategic by letting the White House and the Senate Democrats know there will be no budget deal and no debt ceiling expansion until the spending cuts are implemented,” he wrote.

From an economic standpoint, refusing to pay U.S. Treasury bondholders might be tricky, says Guy LeBas, Janney’s chief fixed income strategist. “If the debt ceiling becomes binding, the Treasury Department will have to prioritize payments, which is complicated at best,” he told The Epoch Times.

LeBas believes the Federal Reserve would—in the event of a government default—likely provide loans to unpaid bondholders to avoid a banking crisis. He says, however, the greater threat lies in the real economy.

“Many businesses and individuals depend on federal payments for revenue—think contractors or Social Security recipients—and a halt to those payments, even a short-lived one, could have serious consequences for growth.”

Several non-budgetary agreements were made between the holdouts and the new speaker, including imposing term limits for House representatives, a focus on single-issue bills, and a requirement that allows 72 hours for members of Congress to read proposed legislation.

‘Church Committee’

One initiative that has caught the attention of the public is the formation of a new committee to investigate wrongdoing at the Federal Bureau of Investigation (FBI) and other intelligence agencies with respect to First Amendment and other civil rights infringements. Initially proposed by Fox News anchor Tucker Carlson, the initiative was taken up by House Republicans.

“Tucker Carlson suggested forming a new ‘Church Committee.’ Kevin McCarthy is making this happen in the House rules package,” Rep. Thomas Massie (R-Ky.), who will be a member of the committee, wrote in a tweet on Jan. 6. “Church Committee” refers to a Senate investigation into intelligence agency activities, led by former Sen. Frank Church (D-Idaho), in response to the Watergate scandal.

Vought said this is a major step in holding “the weaponized national security state accountable.”

Even some Democrats were supportive. Progressive Rep. Ilhan Omar (D-Minn.) said the committee’s formation was “pretty exciting” in an interview with MSNBC on Monday.

Massie told Fox News anchor Carlson that he is working with Rep. Jim Jordan (R-Ohio) and the House Intelligence Committee—which commands subpoena power—to begin looking into whether there is “something fishy going on.”

A keystone element in ensuring Speaker McCarthy upholds his end of the bargain is a reversion to the “Jeffersonian motion to vacate,” which grants any member of Congress the privilege to put forth a motion to remove the acting speaker.

Former Speaker Nancy Pelosi (D-Calif.) altered the rule with the language: “a resolution causing a vacancy in the Office of Speaker shall not be privileged.” Pelosi’s change placed the authority to begin a motion in the hands of party leaders and required a majority vote by a party caucus.

“Accountability returns to the House,” Matt Gaetz (R-Fla.) wrote in a tweet in response to the reversal of Pelosi’s rule.

More investigative committees are expected to be formed in the coming weeks, including those looking into the origins of COVID-19 and what went wrong during the Afghanistan withdrawal.

MSNBC host and former Republican Congressman Joe Scarborough warned that modern Republicans are dismantling the “institutions that keep us safe” during a segment on Monday. “They’re going to lose 2024 if they continue this radical and, I say, anti-American approach.”

Linda McMahon, chair of the board of the America First Policy Institute, issued a statement praising the efforts of the Freedom Caucus and offered strong words of opposition toward establishment figures in Washington, saying, “Enough is enough.”

“It is time for politicians in Washington, D.C., to remember that they work for us,” said McMahon, who served as head of Small Business Administration under President Trump.

“We will not tolerate political prosecutions, the government working with Big Tech to censor Americans they do not like, or American heroes being kicked out of the military for standing up for their religious beliefs.”