GOP lawmakers want Mulvaney sidelined in budget talks

Senate Republicans, eager to avert a government shutdown or automatic spending cuts, want acting White House chief of staff Mick MulvaneyJohn (Mick) Michael MulvaneyTrump administration asks Supreme Court to take up challenge to consumer bureau NOAA chief praises agency scientists after statement backing up Trump tweet The Hill's Morning Report — Biden steadies in third debate as top tier remains the same MORE pushed to the sidelines in budget negotiations with Democrats.

GOP lawmakers would prefer Treasury Secretary Steven MnuchinSteven Terner MnuchinLawmakers run into major speed bumps on spending bills The Hill's 12:30 Report: Trump, Graham clash over Iran policy Liz Cheney calls for 'proportional military response' against Iran MORE take the lead in representing the White House, as they see him being more amenable to a two-year spending deal that would also raise the debt limit.

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Mulvaney, on the other hand, is viewed as resistant to striking a two-year deal, which would take the prospect of another government shutdown off the table until after the 2020 election.

And Republicans point to Mulvaney’s time in the House as the reason for their concern.

As a founding member of the conservative House Freedom Caucus, Mulvaney was an outspoken critic of big budget deals that swell the federal deficit. That’s also one of the main reasons President TrumpDonald John TrumpTrump conversation with foreign leader part of complaint that led to standoff between intel chief, Congress: report Pelosi: Lewandowski should have been held in contempt 'right then and there' Trump to withdraw FEMA chief nominee: report MORE appointed him to serve as White House budget director before he transitioned last year to serve as acting chief of staff.

GOP lawmakers say they were pleased that Mnuchin took the lead in a recent meeting Speaker Nancy PelosiNancy PelosiPelosi: Lewandowski should have been held in contempt 'right then and there' Democrats bicker over strategy on impeachment Overnight Health Care — Presented by Partnership for America's Health Care Future — Pelosi set to unveil drug price plan | Abortion rate in US hits lowest level since Roe v. Wade | Dems threaten to subpoena Juul MORE (D-Calif.) hosted in her office with Congress’s other top leaders.

“He’s been very helpful. My experience with Secretary Mnuchin has been very positive, and I think it’s a job he’d be good at,” Sen. John CornynJohn CornynGOP signals unease with Barr's gun plan Hillicon Valley: Zuckerberg to meet with lawmakers | Big tech defends efforts against online extremism | Trump attends secretive Silicon Valley fundraiser | Omar urges Twitter to take action against Trump tweet Trump administration floats background check proposal to Senate GOP MORE (R-Texas), an adviser to Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellLawmakers run into major speed bumps on spending bills Budowsky: Donald, Boris, Bibi — The right in retreat Hillicon Valley: Zuckerberg to meet with lawmakers | Big tech defends efforts against online extremism | Trump attends secretive Silicon Valley fundraiser | Omar urges Twitter to take action against Trump tweet MORE (R-Ky.), said of Mnuchin taking the lead for the White House in budget talks.

Cornyn said he understood from speaking to Sen. Patrick LeahyPatrick Joseph LeahyDemocrats press for action on election security The Hill's Morning Report — Biden steadies in third debate as top tier remains the same Overnight Defense: Dems grill Trump Army, Air Force picks | House chair subpoenas Trump Afghanistan negotiator | Trump officials release military aid to Ukraine MORE (Vt.), the ranking Democrat on the Senate Appropriations Committee who is involved in the talks, that Mnuchin will be taking a more central role and praised it as a positive development.

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Another Republican lawmaker close to the talks said Mnuchin is “now playing the lead role” and expressed satisfaction with that development.

“He brings the stature of the Cabinet,” the GOP senator said.

Republicans think Mnuchin will be more amenable to striking a deal with Democrats because he is eager to raise the debt limit in a timely and orderly way. A budget agreement would be a convenient vehicle to raise the debt limit, as it would likely pass both the Senate and House by wide margins.

Reaching a spending deal soon would also send a reassuring signal to financial markets.

“He’s been in the private sector. He understands it’s important to talk about the debt limit because he understands sending a message to bond markets around the world,” the GOP senator added.

Democrats publicly, and Republicans privately, have identified Mulvaney as an obstacle to getting a deal.

Mulvaney and Mnuchin have been on the same page in meetings with congressional leaders, but lawmakers suspect Mulvaney is more of an obstacle than Mnuchin, largely because of his past affiliation with the House Freedom Caucus.

“I think Mulvaney does not want a deal, and I think that’s the biggest problem. Mr. Mulvaney believes his negotiating authority or positioning will be better if there’s no deal,” said House Majority Leader Steny HoyerSteny Hamilton HoyerOvernight Health Care — Presented by Partnership for America's Health Care Future — Pelosi set to unveil drug price plan | Abortion rate in US hits lowest level since Roe v. Wade | Dems threaten to subpoena Juul Dem leader says party can include abortion opponents Hoyer calls on GOP leader to denounce 'despicable' ad attacking Ocasio-Cortez MORE (D-Md.), who said he’s been briefed by Pelosi on the negotiations.

“One of the problems, of course, is the Republicans can’t get agreement among themselves, between the Republican senators and the White House, and that’s unfortunate,” added Hoyer.

Senate Republicans fear they will lose leverage the longer the talks remain stalled.

“At some point, somebody has to put the hammer down on Mulvaney. You’re not going to get anything you want unless Nancy gets everything she wants on the domestic side, moneywise, at least. I don’t know why they can’t figure that out,” a GOP lawmaker said of the difficulty the White House has had dealing with Pelosi.

“They think the president’s hand gets stronger over time. Most of us think it gets weaker over time,” the Republican lawmaker said, warning that letting the impasse drag out later in the year risks the chance of a government shutdown in December.

“Why would the president want to start the election year like that?” the senator asked, predicting that Republicans would get most of the blame for another government shutdown.

A senior administration official said, “It does no good for Republicans to negotiate with ourselves.”

The senior administration official said Democrats are to blame for the lack of progress and downplayed the likelihood of another shutdown or the scarier prospect of the federal government not being able to pay its obligations by failing to raise the debt ceiling.

“Democrats ended negotiations this week because they continue to push their dead-on-arrival $2 trillion increase with unserious policy riders, while the administration has made serious compromise offers,” the official said. “A shutdown or debt default is not going to happen.”

McConnell hosted a meeting with Mulvaney, Mnuchin and senior members of the Senate Appropriations Committee last week in an effort to convince the White House that a two-year spending deal is the best option.

Mulvaney has frustrated GOP and Democratic lawmakers alike by pushing for a one-year deal instead of the two-year deal that McConnell and most Senate Republicans favor.

“I think Mulvaney wants a one-year deal,” Sen. Richard ShelbyRichard Craig ShelbyLawmakers run into major speed bumps on spending bills Senate Democrats block government spending bill Senate Democrats demand wall-free spending allocation MORE (R-Ala.) said before the meeting.

Sen. Lamar AlexanderAndrew (Lamar) Lamar AlexanderHere are the lawmakers who aren't seeking reelection in 2020 EXCLUSIVE: Swing-state voters oppose 'surprise' medical bill legislation, Trump pollster warns The 13 Republicans needed to pass gun-control legislation MORE (R-Tenn.) said the talks have dragged on for long enough.

“I just think it’s time for the president and the Republican leaders to sit down and work this out. We need to get on with it,” he said.

Republicans were frustrated this week when Mnuchin and Mulvaney proposed a fallback option of passing a one-year continuing resolution (CR) that would essentially freeze spending at fiscal 2019 levels.

“I hate that idea,” said Sen. Lindsey GrahamLindsey Olin GrahamGOP signals unease with Barr's gun plan Overnight Defense: Trump says he has 'many options' on Iran | Hostage negotiator chosen for national security adviser | Senate Dems block funding bill | Documents show Pentagon spent at least 4K at Trump's Scotland resort GOP's Kennedy sends warning shot to Trump nominee Menashi MORE (R-S.C.), who has otherwise defended Mulvaney as doing a good job, when asked about the idea of a yearlong CR.

Sen. Susan CollinsSusan Margaret CollinsGOP signals unease with Barr's gun plan Sinema touts bipartisan record as Arizona Democrats plan censure vote The Hill's Morning Report - Trump takes 2020 roadshow to New Mexico MORE (R-Maine) said, “A one-year CR is a very bad idea.”

“CRs lock in spending from the previous year and do not take into account priorities or changed circumstances,” she said.

Sen. Lisa MurkowskiLisa Ann MurkowskiSinema touts bipartisan record as Arizona Democrats plan censure vote Kavanaugh impeachment push hits Capitol buzz saw McConnell lashes out at Democrats over 'unhinged' criticism of Kavanaugh MORE (R-Alaska) said, “You know how I feel about CRs. I’m not a fan.”

Another Republican member of the Senate Appropriations Committee called a one-year stopgap “a terrible idea.”

While Mnuchin was the one who proposed a one-year stopgap measure as a plan B, lawmakers saw Mulvaney, who still serves as the White House budget director in addition to his role as acting chief of staff, as the main impetus behind it.

Russell Vought, Mulvaney’s former deputy who now serves as acting director of the Office of Management and Budget, suggested in late April during a meeting with senior congressional staff that Congress should consider a long-term CR if it couldn’t reach a deal on raising the spending caps.