WEBVTT - GOP Rep. Hill Talks Budget Talks, Trump's Support of Musk 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. After decades of service

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<v Speaker 1>to his constituents in Arkansas, has the worst job in Washington.

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<v Speaker 1>He has had a House Financial Services Committee, the Republican

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<v Speaker 1>from Arkansas, and he joins us right now, French, I

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<v Speaker 1>got eight ways to go here, but I got to

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<v Speaker 1>look to the second third week of March, where the

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<v Speaker 1>challenge is a government shutdown. Budget challenges. You're going to

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<v Speaker 1>be in the heart of this. So I'm going to

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<v Speaker 1>go to someone on your committee like Monica de la Cruz,

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<v Speaker 1>the Latina from Texas. Fine, Okay, the conservative southerns that

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<v Speaker 1>don't want to budge on the budget. How are mainstream

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<v Speaker 1>Republicans like you going to convince them to keep the

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<v Speaker 1>United States of America running well?

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<v Speaker 2>Thomas, is such an important question. Great to be with

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<v Speaker 2>you this morning. This is something we should have done

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<v Speaker 2>in December. It was a horrible mistake in my judgment

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<v Speaker 2>not to complete the funding for FY twenty five in

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<v Speaker 2>the previous Congress. Under the Biden administration, we would have

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<v Speaker 2>had roughly the same characteristics we would have had an

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<v Speaker 2>incoming Trump administration and incoming Senate. I think we would

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<v Speaker 2>have gotten substantially the same deal, and now we're on

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<v Speaker 2>trying to do budget reconciliation, which is a much more

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<v Speaker 2>important task. And yet we face, as you point out,

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<v Speaker 2>a government shutdown. Republicans have to stick together. We should

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<v Speaker 2>use the Fiscal Responsibility Act numbers from last year and

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<v Speaker 2>negotiate with the Senate now a Republican Senate who wants

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<v Speaker 2>to spend a little bit more on defense, and get

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<v Speaker 2>this behind us so that we could go to the

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<v Speaker 2>main event of focus on reforming regulation, reforming productivity in

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<v Speaker 2>the federal government, reforming spending, extending pro growth tax cuts.

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<v Speaker 3>Give us your sense of how much optimism you have

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<v Speaker 3>that's going to happen here. I know there's a lot

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<v Speaker 3>of nervousness and apprehension that time is running short. There

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<v Speaker 3>are different views on this. We were spending the last

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<v Speaker 3>few weeks talking about will be one bill or two biller?

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<v Speaker 3>Three b three bills. I know you've been involved in

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<v Speaker 3>the same game there on the hill. Do you see

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<v Speaker 3>a path forward here? How much clarity do you have

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<v Speaker 3>at this point?

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<v Speaker 1>Yeah?

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<v Speaker 2>Well, first, on Tom's question about f y twenty five

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<v Speaker 2>finishing f y twenty five before March fourteenth, I have

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<v Speaker 2>medium confidence the worst case scenario would be to continue

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<v Speaker 2>a CR till like September thirtieth. First of all, once

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<v Speaker 2>you hit April first, you'll have a one percent across

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<v Speaker 2>the board cut in f y twenty five spending and

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<v Speaker 2>crs are terrible for government management. We'll end up spending

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<v Speaker 2>billions more because we operate under a CR. We won't

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<v Speaker 2>be able to start any new programs at the Defense Department,

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<v Speaker 2>which is a priority for the administration. So that makes

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<v Speaker 2>me lean to yes, we'll get something done on March fourteenth,

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<v Speaker 2>on fiscal twenty five, as the budget reconciliation the big game.

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<v Speaker 2>I do support one bill here in the House because

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<v Speaker 2>I think that's how we hold the Republican coalition together

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<v Speaker 2>best here. And as you know, Senator Graham and the

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<v Speaker 2>Senate's taking a different approach.

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<v Speaker 3>Congressman Hill, what is the view from the Longworth House

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<v Speaker 3>Office building of what we're seeing the White House do?

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<v Speaker 3>Of course, the historical precedent has been that Congress controls

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<v Speaker 3>the purse, makes decisions about funding. We are seeing this

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<v Speaker 3>administration take a more active role, shall we say, in

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<v Speaker 3>determining what gets funded and what doesn't. How much comfort

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<v Speaker 3>do you have with seeding some of that power to

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<v Speaker 3>your friends and colleagues in the other branch, the executive

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<v Speaker 3>branch Pennsylvania Avenue.

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<v Speaker 2>Well, thank you. Find on money that's appropriated, Congress does

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<v Speaker 2>control those purse strings and they direct that spending. But

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<v Speaker 2>in the broad swaths of federal spending, you have directions

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<v Speaker 2>to agencies spend this money on these general topics, and

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<v Speaker 2>that's what the appropriated money says. And then you have

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<v Speaker 2>article to authority with a lot of discretion about how

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<v Speaker 2>to spend it. And I think that's what President Trump's

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<v Speaker 2>attempting to look at. Is the spending done at the

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<v Speaker 2>end of the Biden administration and proposed to be spent

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<v Speaker 2>here in the first few weeks of his administration. Is

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<v Speaker 2>it in alignment with his goals that he has in

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<v Speaker 2>foreign policy, for example at USAID And that's a classic

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<v Speaker 2>article too, Authority to take a look at that, make

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<v Speaker 2>sure it's in alignment with their policies. With that said,

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<v Speaker 2>you can't do these things without both the legislative branch

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<v Speaker 2>and the executive branch, okayately working together.

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<v Speaker 1>Then Frenchchill, you know, you and I have known each

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<v Speaker 1>other since time began, and I've never seen a private

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<v Speaker 1>citizen in the Oval office, standing there with his arms

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<v Speaker 1>crossed like he owned the high ground. You are one

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<v Speaker 1>of the rare beasts that came to Congress actually running

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<v Speaker 1>a business in Little Rock. What's your advice to your

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<v Speaker 1>fellow moderate brethren of the Democratic and Republican persuasion? What

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<v Speaker 1>do they need to do in the coming days?

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<v Speaker 2>Well, first, let's look at doje Tom. It's a good

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<v Speaker 2>idea to go in and look at for efficiency and

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<v Speaker 2>government in the executive branch and make recommendations to the

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<v Speaker 2>legislative branch when you want to spend money differently or

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<v Speaker 2>have a different number of full time equivalent positions in

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<v Speaker 2>an agency. That's perfectly a good suggestion, and we haven't

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<v Speaker 2>done it in years. I'd say since nine to eleven.

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<v Speaker 2>The government's been focused on growing, not remotely focused on

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<v Speaker 2>productivity or realigning or investing in technology or doing anything

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<v Speaker 2>in a different way. We've been completely distracted by the

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<v Speaker 2>war on terrorism, the OA crisis, and then the recovery

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<v Speaker 2>from that, and then the pandemic. So I think it's

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<v Speaker 2>over time to scrape the barnacles from the ship of

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<v Speaker 2>state when it comes to regulatory policy, personnel policy. But

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<v Speaker 2>there's a right way and a wrong way to do it,

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<v Speaker 2>And I would encourage the administration to plan, communicate, and

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<v Speaker 2>consult with Congress on how the best way to do

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<v Speaker 2>that is.

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<v Speaker 3>As for the right way to do it, I think

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<v Speaker 3>of you as a young man serving as a deputy

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<v Speaker 3>Assistant Secretary of the Treasure Department at aer Nicholas Brady,

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<v Speaker 3>and I wonder if you could have imagined you would

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<v Speaker 3>have non appointed, non confirmed private sector individuals going in

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<v Speaker 3>and looking at the payment system there in the Treasury Department.

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<v Speaker 3>Does that make you uncomfortable having the history that you

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<v Speaker 3>have with the Treasury Department to see the way that

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<v Speaker 3>Doge has been approaching the sort of fiscal health the books,

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<v Speaker 3>for lack of a better word, of the federal government.

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<v Speaker 2>Well, when I heard about that story over the weekend

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<v Speaker 2>last week, called Secretary of Ascent. We talked about it

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<v Speaker 2>last Monday, and he assured me that anything that Doge

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<v Speaker 2>was doing was in the control of the official Treasury

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<v Speaker 2>Department and that some people were working there for it

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<v Speaker 2>review purposes. But he implied to me that he's got

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<v Speaker 2>that under control. For making those recommendations, We're going to

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<v Speaker 2>hold him accountable. He's the Treasury Secretary. So anything that

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<v Speaker 2>Doge is doing in a cabinet agency, we just need

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<v Speaker 2>to remind the American people, Members of Congress, the Trump administration,

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<v Speaker 2>we're holding the Cabinet Secretary accountable for, as I say, planning,

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<v Speaker 2>efficiency changes, budget change, personnel changes. We're holding them accountable

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<v Speaker 2>here in Congress.

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<v Speaker 3>We got some news overnight that Jonathan mccurernan, formerly the FDIC,

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<v Speaker 3>has been picked to head the CFPB. And this has

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<v Speaker 3>been an agency that's been in the crosshairs. I think

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<v Speaker 3>it's safe to say you've had your criticisms with that

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<v Speaker 3>agency over these last few years. And I want to

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<v Speaker 3>ask you about some comments that the general lady from Cambridge,

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<v Speaker 3>Massachusetts made on our heir last night, the senior Senator

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<v Speaker 3>from Massachusetts, Elizabeth Warren, and she said, look, it's not

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<v Speaker 3>up to the executive branch to decide whether or not

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<v Speaker 3>an agency like the CFPB exists or what form it takes.

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<v Speaker 3>That's up to Congress. And the point that she's making

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<v Speaker 3>is you and other lawmakers, if you don't like what

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<v Speaker 3>this bureau, this agency is doing, you could take action yourselves.

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<v Speaker 3>Lawmakers could decide whether or not it should continue to exist.

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<v Speaker 3>Do you agree with the argument that she's making there

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<v Speaker 3>that fundamentally, it's not up to the executive branch, not

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<v Speaker 3>up to this administration to decide what agencies, what parts

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<v Speaker 3>of this government should should stick around or be disappeared.

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<v Speaker 2>Well, as a general matter, you'd have to look at

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<v Speaker 2>statute by statute, agent by agency by that. But as

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<v Speaker 2>a general statement, sure, I mean, Congress creates agencies, Congress

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<v Speaker 2>can end agencies. There's nothing so permanent though, as a

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<v Speaker 2>temporary government program, as President Reagan reminded us. But let's

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<v Speaker 2>talk about Elizabeth Warren. She's the founding mother of the CFPB.

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<v Speaker 2>She created it to be insulated from oversighted, insulated from appropriations,

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<v Speaker 2>and insulated from any meddling by Congress. And that's what

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<v Speaker 2>irritated Congress, and that's why I support changing the agency dramatically.

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<v Speaker 1>But Frenchhill, well, I got a couple final questions. This

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<v Speaker 1>is important, As you mentioned the senator from the Commonwealth,

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<v Speaker 1>where do we find a middle ground? You are one

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<v Speaker 1>of the leaders of the middle ground in Washington. How

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<v Speaker 1>does Senator Warren and someone over on the MAGA write

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<v Speaker 1>find a common feature around people like french Hill.

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<v Speaker 2>Well, it's a great question, and I've hearded Senator Warren

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<v Speaker 2>to consider that exactly. She's concerned about the big banks

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<v Speaker 2>taking over the world. Well, she's created that with Dodd Frank.

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<v Speaker 2>It concentrates more power into those big banks. I've encouraged

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<v Speaker 2>her to consider tailoring policies for all the rest of

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<v Speaker 2>the banking system, and also considering compromise on the CFPB

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<v Speaker 2>but putting it under congressional appropriations and having a bipartisan

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<v Speaker 2>commission right overseas its work. Those are middle ground points.

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<v Speaker 1>French, I don't care. Here's what I care about. My

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<v Speaker 1>father worshiped Bill Dickie of Little Rock, Arkansas, the x

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<v Speaker 1>Yankees million years ago. Your minor league ball team, the

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<v Speaker 1>Arkansas Travelers, Texas League. They play in the Dickey Stadium.

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<v Speaker 1>How's a state of minor league baseball in Little Rock?

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<v Speaker 1>Is we have pitchers and catchers today.

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<v Speaker 2>Boys strong. There's no better place to be on an

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<v Speaker 2>early summer night. The price is right, the fun is great,

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<v Speaker 2>and it's fun to beat the teams in the Texas League.

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<v Speaker 2>And it's something I love doing with not only my

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<v Speaker 2>family but all my friends.

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<v Speaker 1>There were the Seattle Mariners. You think I could see

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<v Speaker 1>the Red Sox.

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<v Speaker 3>You know down in Arkansas, what kind of maybe every

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<v Speaker 3>time I feel in on this show, we have like

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<v Speaker 3>three trips we need to take on the heels of

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<v Speaker 3>each show. That Little Rosters and Baseball sounds like it's

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<v Speaker 3>a plan to me.

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<v Speaker 2>We'll put you right, We'll put you right behind the

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<v Speaker 2>home plate.

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<v Speaker 1>In honor of the beloved Barney Frank. I hope you

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<v Speaker 1>do as well as Barney Frank. He's having a Financial

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<v Speaker 1>Services committee in Washington, the Republican little rock Frendshill joining

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<v Speaker 1>us