House Rules Committee Hearing: GOP-Backed CR, Pandemic Fraud, and DeFi Rules

Continuing Resolution (CR) Debate

• 🏛️ The House Rules Committee convened to consider HR 11968, the "Full Year Continuing Appropriations and Extensions Act of 2025," aimed at avoiding a government shutdown.
• 📉 Republicans framed the CR as a necessary measure to maintain government operations through September 30th, providing flat funding and avoiding a shutdown, which they argue is the only viable option given the time constraints.
• 🗣️ Democrats strongly opposed the CR, labeling it a "blank check" for the Trump administration and criticizing it for cutting non-defense investments and transferring power to the executive branch.

Pandemic Unemployment Fraud Enforcement

• 💸 HR 1156, the "Pandemic Unemployment Fraud Enforcement Act," proposes a 10-year statute of limitations for prosecuting fraud related to federal pandemic unemployment programs.
• 🚨 The bill aims to hold accountable perpetrators of fraud that occurred during the COVID-19 era, with estimates of stolen funds ranging from $100 billion to $400 billion.
• ⚖️ Democrats expressed concerns that the bill, as proposed, could be used for harassment of constituents and criticized the firing of the Inspector General overseeing these investigations.

Digital Asset and DeFi Rulemaking

• 🏦 HJ Res 25, a Congressional Review Act resolution, seeks to overturn a Biden administration rule targeting decentralized finance (DeFi) brokers and impacting the digital asset ecosystem.
• 🚫 Republicans argued the rule was imprudent, unconstitutional, and gave excessive latitude to the IRS, threatening the viability of the digital asset industry.
• 📉 Democrats countered that repealing the rule would create a $4 billion gap in tax revenue and potentially aid illicit activities, while also criticizing the administration's approach to digital assets.

Bipartisan Disagreements and Accusations

• 💥 Heated exchanges occurred regarding veterans' funding, with Republicans asserting that the bill fully funds current needs and addresses future concerns in the FY26 bill, while Democrats accused them of breaking promises and not advancing funding.
• 🇺🇸 The debate also touched upon funding for Washington D.C., with Democrats arguing that the CR unfairly cuts local services after previous CRs allowed for higher spending levels.
• 🚫 Accusations of political maneuvering were frequent, with both sides blaming the other for the inability to pass regular appropriations bills and for the potential government shutdown.