White House seeks $88bn spending package as Republican rift clouds approval

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White House $88bn request

Highlights

The White House submits an $88 billion supplemental funding request to Congress, including $67 billion for Iran war expenses and $21 billion for U.S. military munitions replenishment.
The funding plan allocates $11 billion to support U.S. farmers impacted by rising fertiliser prices and seeks year-round sales approval for E15 fuel to address increasing petrol costs.
Republican infighting and opposition to recent White House agreements with Iran and other stalled legislative priorities threaten the supplemental package's prospects in Congress.

Supplemental funding request and policy priorities

As reported by Financial Times, Office of Management and Budget director Russell Vought sends Congress a long-awaited supplemental request on Wednesday and says most of the package addresses urgent needs linked to the conflict in the Middle East. He urges lawmakers to act as soon as possible on the proposal, which totals $88 billion in new federal spending.

The request includes $67 billion for costs related to the Iran war, with $21 billion of that amount intended to replenish the U.S. military's weakening munitions stockpiles. The White House also includes $11 billion for U.S. farmers, after the agriculture sector comes under pressure from the administration's protectionist trade policies and the Iran conflict, which has pushed fertiliser prices higher.

The administration also asks Congress to approve year-round sales of E15, a fuel blend now restricted to parts of the year because of pollution concerns. The White House argues that removing those limits would help reduce petrol prices, which have climbed sharply since the war began.

Republican resistance complicates passage

Tensions inside the president's party are intensifying as several Republican lawmakers question the agreement reached last week between Washington and Tehran, which extends a months-long ceasefire and grants significant concessions to Iran. The Senate also approves a war powers resolution on Tuesday aimed at limiting Trump's authority to restart hostilities, after four Republican senators break ranks to support it.

Those strains spill into a closed-door lunch on Capitol Hill on Wednesday, where Trump reportedly clashes with senators from his own party. Bill Cassidy says afterward that the president raises his voice when pressed to explain the prolonged Middle East conflict, and Cassidy says he responds in kind after arguing that the public has not been clearly told what is happening.

The confrontation adds to broader frustration among Republican lawmakers after Trump abruptly drops plans to sign a bipartisan affordable housing bill backed by members of his party. He says he will not approve the measure until Congress passes the Save America Act, a proposal requiring voters to show proof of citizenship, and he also recently delays Jay Clayton's confirmation hearing for the top U.S. intelligence post amid bipartisan opposition to Bill Pulte.

Our earlier report on the White House’s request for more than $11 billion in supplemental farm aid explained how rising fuel and fertilizer costs tied to the Iran war are squeezing producer margins. We noted that, if approved, the additional support could push direct government payments to roughly $55.4 billion in 2026, highlighting the political and income impact for the farm sector.

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