Exclusive: White House finds 11th-hour shutdown workaround to pay troops — for now
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President Trump's budget team raided three different financial accounts to make sure U.S. troops are paid Friday as the government shutdown continues, White House officials tell Axios.
Why it matters: As long as military personnel are paid, Trump isn't planning to budge on the nearly month-old shutdown, even with as many as 42 million people set to lose food stamp benefits Saturday.
Zoom in: Earlier in the week it was unclear whether the White House Office of Management and Budget (OMB) could find roughly $5.3 billion to make the military's payroll by Friday, but two White House officials tell Axios the money was found at the last minute. The OMB found:
- $2.5 billion from a military housing fund specified in Trump's One Big Beautiful Bill Act to continue paying housing allowances for military personnel.
- $1.4 billion from the Research, Development, Test and Evaluation fund, which largely will cover U.S. Army and Air Force payroll. The account normally funds military research and was heavily relied upon two weeks ago to cover military paychecks.
- $1.4 billion from a Defense Department procurement account for building U.S. Navy ships, largely to fund the Navy and Marines.
Zoom out: Democrats and liberal policy experts have accused the president of illegally usurping Congress' powers to appropriate money, but Trump and his congressional allies believe their opponents won't sue over work-arounds to pay the military because it would be too unpopular.
- "It is politically tricky," Rep. Jim Himes (D-Conn.) acknowledged to Axios weeks ago after accusing Trump of illegally moving money around.
- OMB denies the accusation and sent a memo, first reported by Axios, drawing on presidents as far back as George Washington to justify using money for the military without congressional authorization.
What they're saying: "President Trump is continuing to pay the troops despite Democratic resistance and he's not going to let them down," a senior White House official told Axios.
- "We have identified more money if this goes longer."
Friction point: Food stamp benefits won't be accessible to as many 42 million people starting Saturday, and the administration told Axios its hands are tied when it comes to funding that program.
- Democrats say that's a flimsy excuse by Trump aimed at making the shutdown more painful to low-income people.
- Two dozen states sued the Trump administration Tuesday over the food stamp cuts.
The shutdown also is affecting air travel across the country as airports have begun announcing ground delays.
Breaking point: Pressure on Senate Democrats to vote to fund the government and end the shutdown increased Monday when the American Federation of Government Employees weighed in on behalf of its 800,000 members who are going without pay.
- "It's time to pass a clean continuing resolution and end this shutdown today," the union said.
- Senate Democrats want Affordable Care Act subsidies, which were set to expire, to be extended for more middle-class people. Now some Democrats are pushing for a partial reopening of government.
- But Trump "won't negotiate with hostage-takers in Congress because it inspires more hostage-taking," another senior administration told Axios in explaining why the White House believes it's winning the shutdown standoff.
