Endless Spending: The Continuing Resolution Crisis

Originally published at American Institute for Economic Research. 

​Friday’s rejection of the continuing resolution (CR) in the US House underscores Congress’s glaring dysfunction. This bill wasn’t just bad — it was emblematic of a systemic failure to restrain federal spending. The proposed measure continued unsustainable spending levels and piled on additional increases without the spending cuts necessary to offset its fiscal recklessness.

The House vote failed 174-235, a stunning defeat for President-elect Donald Trump and Speaker Mike Johnson. This chaotic episode highlighted deep divisions within Congress, with Democrats refusing to accommodate Trump’s sudden demands and many Republicans expressing frustration over internal disarray.

Congressman Chip Roy (R-TX) aptly called out his fellow lawmakers, stating, “I am absolutely sickened by a party that campaigns on fiscal responsibility and has the temerity to go forward to the American people and say you think this is fiscally responsible. It is absolutely ridiculous.” He’s right. For years, Congress has operated with bipartisan disregard for fiscal restraint, perpetuating a cycle of overspending that jeopardizes America’s economic future.

Outrageous Spending Items in the CR
The latest CR is packed with bloated spending measures that reveal Congress’s skewed priorities and increase spending by trillions of dollars over the next decade:

• Disaster aid: $100.4 billion for disaster relief, including hurricane-hit states, without offsetting cuts elsewhere.
• Debt ceiling suspension: Allows borrowing through January 30, 2027, a move many Republicans opposed without structural spending reforms.
• Infrastructure projects: Includes funds to rebuild Baltimore’s Key Bridge but omits bipartisan proposals like land transfers for new projects.

Elon Musk highlighted the drastic reduction in the bill’s length — from 1,500 pages to 116 pages — on his platform, X. But let’s be clear: it’s not about the number of pages. It’s about the number of taxpayer dollars being spent. Trimming a bill’s word count while not dramatically cutting spending is no win for the American people.

Families Live Within Their Means. Why Can’t Congress?
American families know what it’s like to live within a budget. Most work hard to stay within their credit limits, ensuring they don’t jeopardize their financial futures. Politicians, however, seem to have no such discipline. They spend other people’s money recklessly, ignoring the long-term consequences.

Adding insult to injury, the CR would have extended the debt ceiling for two years — until after the midterm elections — removing a check on runaway federal borrowing. This two-year extension, supported even by President-elect Donald Trump, was a slap in the face to those advocating for fiscal discipline. Rep. Roy and others in the House Freedom Caucus are right to demand structural reforms to spending before agreeing to any increase in the debt ceiling. Without such reforms, we’re simply enabling the same destructive cycle.

A Nation on the Brink
The United States is teetering on the edge of major fiscal, monetary, and economic crises. Federal debt exceeds $36 trillion, inflation remains a persistent threat, and rising interest rates are squeezing household budgets and business investments. More government spending — as proposed in this CR — will only exacerbate these problems.

Americans care about their income, prosperity, and financial security — not the page count of a bill. Excessive government spending undermines all three. It fuels inflation, weakens the dollar, and leaves future generations saddled with debt. We need sustainable budgets that cut spending today and limit future growth to no more than the combined rate of population growth and inflation. This approach would help stabilize the economy while reducing the burden on taxpayers.

Shutdowns Aren’t the Problem; Overspending Is
Critics often use the threat of a government shutdown to push through irresponsible spending bills. But let’s be clear: politicians have already shut down schools, economies, and entire communities in recent years. A temporary federal government shutdown, by contrast, might be the best thing to happen right now. It would force a much-needed reckoning with the root of our problems: Congress’s addiction to deficit spending.

A shutdown would allow the American people and their representatives to step back and address the elephant in the room: spending. It’s an opportunity to demand real solutions, not half-measures or hollow promises. For a resilient, pro-growth economy, prioritize structural reforms like spending caps and deregulation.

Looking Ahead: A New Era of Fiscal Restraint?
There are signs of hope. The incoming administration has signaled more fiscal restraint and deregulation, which is questionable given the CR efforts. With Musk and Vivek Ramaswamy leading the Department of Government Efficiency (DOGE) efforts, there’s potential for meaningful change. But actions speak louder than words, and this CR’s failure is a stark reminder that reform won’t be easy.

The next year will bring multiple fiscal cliffs, including debates over the debt ceiling, expiring Tax Cuts and Jobs Act provisions, and new spending bills. Policymakers must seize these moments to enact lasting reforms. That means standing firm against the pressures of Washington’s spending culture and prioritizing the long-term prosperity of the American people over short-term political gains.

Conclusion: A Call to Action
Rep. Roy’s critique of the CR highlights a broader truth: the federal government is failing its citizens. It’s time for lawmakers to stop negotiating with themselves and start delivering on their promises of fiscal responsibility. This means rejecting bad bills, demanding meaningful spending cuts, and embracing sustainable budgeting practices.

Balanced budgets are achievable—with faster economic growth and significant spending restraint. By implementing meaningful reforms today, we can create opportunities for prosperity tomorrow. The stakes couldn’t be higher. The time for excuses is over.