Donald Trump’s latest attempt on the campaign trail to influence federal policy: stillborn in less than two days under bipartisan pressure. What began, so to speak, as a bold proclamation died in the first 45 hours of its birth-birth that left confusion, backlash, and the administration on the run to reassure markets and government agencies.
The Announcement That Shook Washington
On Monday morning, Trump, the Republican frontrunner in the race for the presidency in 2024, presented a statement in which he called upon congressional Republicans to freeze all nonessential federal spending. Trump laments the excessive opportunistic spending during the Biden administration. The president urged the GOP leaders in Congress to quash continuing appropriations bills and any budget deals until after the elections.
Wivicked up a shock throughout Washington. House Republicans already under pressure immediately caved in under a slim majority. Senate Democrats quickly were on the consideration, chastising the concept as they said it would destabilize critical government operations, thus effectively risking a new government shutdown.
Immediate Fallout and Economic Panic
Alarm bells sounded within financial institutions and among economists over what may happen. As the expenditure of money would halter in an instant, financing for infrastructure projects would dry up, salaries of federal workers could be stalled, and there would be insecurity in the financial markets. The stock market exhibited stomach-wrenching dives, with the Dow Jones declining by nearly 400 points before recovery.
Government agencies, stretched thin by the previous funding battles, rushed to gauge the potential impact. The Department of Defense warned of disruptions to military contracts, while the Department of Health and Human Services raised concerns about Medicaid funding.
The next day, fissures were beginning to form within the GOP. Senate Minority Leader Mitch McConnell drove a wedge between himself and the proposal, asserting, “Governing responsibly requires more than campaign slogans.” Even House Speaker Mike Johnson, who had initially supported a complete freeze, allowed that such a total is “not feasible.”
Private Republican donors and corporate leaders were said to vent their displeasure: the former because of apparent economic uncertainty. By Wednesday morning, Trump backtracked. He issued an amended statement, toning down his rhetoric and demanding that spending cuts should be sought through “negotiation, not obstruction.”
The meteoric rise and decline of the Trump live freeze captured the pandemonium over the extent of his hold over the Republican Party. The episode revealed there were limits to his might in directing policy beyond the White House, even though his base remained loyal.
For Washington, it was another reminder that within Trump’s world, bold proclamations can disappear as quickly as they emerge.
