Senate GOP Cuts Trump Ballroom Funds

Summary

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Balance of Power — Senate GOP Cuts Trump Ballroom Funds

Podcast: Balance of Power (Bloomberg)
Episode Date: June 3, 2026
Host(s): Joe Mathieu, Kailey Leinz
Special Guests: Rick Davis, Jeannie Shan Zaino, Georgia Governor Brian Kemp, Congressman Jake Auchincloss
Main Theme:
A deep dive into the latest developments on Capitol Hill, focusing on Senate Republicans stripping funds for the planned White House ballroom from reconciliation legislation, the shifting dynamics of congressional support for President Trump, the politics of national security, and energy issues impacting constituents.

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Episode Overview

The episode explores the growing rifts between Senate GOP leadership and the Trump administration, especially with the controversial removal of funding for a new White House ballroom. It examines broader patterns of Republican dissent on Capitol Hill, looming political battles over War Powers and national security funding, and the impact of energy policy on states such as Georgia. In-depth analysis is provided by Bloomberg’s political panel and interviews with high-profile policymakers.

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Key Discussion Points

1. Capitol Hill’s Tumultuous Legislative Day

[00:40-01:30]

• The House returns from recess and is set to vote on a War Powers Resolution, a symbolic but significant rebuke to President Trump’s handling of conflict in the Strait of Hormuz.
• The Senate is moving forward with a "skinny" reconciliation bill focused on funding ICE and CBP, after stripping controversial funds, including $1 billion for a White House ballroom.
• Senate Majority Leader John Thune is attempting to maintain a slim, fragile coalition to pass the bill.

2. Panel Reactions: Is GOP Unity Fraying?

[01:37-05:00]

• Rick Davis (Republican Analyst): Thune now has what he needs to move the basic funding package forward.
  • “The coast is clear. He’s got the votes for the basic bill that funds Border Patrol and ICE.” [02:32]
• Jeannie Shan Zaino (Democratic Analyst): Sees growing cracks in GOP support for Trump.
  • “Donald Trump...his control of the Senate and House is waning a bit.” [03:37]
• Republicans and Democrats are expected to force votes on amendments, especially to publicly rebuke the now-abandoned DOJ "anti-weaponization fund" and provisions shielding Trump from IRS probes.
• The removal of the ballroom funds is seen as a parliamentary necessity, but also a symbol of retreat from Trump’s personal priorities.

3. Broader Political Fallout for Trump

[05:32-08:50]

• Rick Davis: Points out increasing pushback among GOP members, especially in swing districts, and notes that performative amendments may have little substantive effect due to reconciliation rules.
  • “There’s definitely a little more chippy mood amongst Republican members about Trump.” [05:32]
• The upcoming War Powers vote in the House is expected to pass, with implications for the midterm elections.
• President Trump remains in the public eye, set to attend Game 3 of the NBA Finals in New York, coinciding with his upcoming 80th birthday and a UFC event at the White House.

4. FISA and National Security Leadership in Turmoil

[08:50-13:15]

• Pushback grows over Trump’s unorthodox appointment of Bill Pulte as acting Director of National Intelligence ahead of crucial FISA Section 702 renewal.
• Rick Davis: “The lobbyist lunch pools are heavy betting that the guy doesn’t last 30 days on the job.” [10:57]
• Concerns are raised about the nomination timeline and Pulte’s lack of qualifications, especially since acting roles don’t require Senate confirmation.
• Jeannie Shan Zaino: “You’re going to put somebody in there for 250-plus days, some odd days, and they have no national security experience as the law requires.” [12:17]

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Feature Interview: Georgia Governor Brian Kemp

[14:15-25:25]

Energy Infrastructure and Rate Policy

[14:28-18:17]

• Georgia is managing increased demand from data centers and large manufacturers by charging big tech companies more for energy, keeping residential rates frozen or lowered.
• “Our rates are dropping and our generation’s going up.” — Brian Kemp [15:04]
• Federal loans to Georgia Power are being handled so that expanded business and investment offset ratepayer obligations.

Political Debates on Economic Growth

[18:17-21:26]

• Governor Kemp criticizes Democratic gubernatorial candidate Keisha Lance Bottoms’s proposal for a construction freeze on data centers, arguing that rural communities need the economic boost and jobs.
• He defends ending the state's gas tax suspension, noting state fiscal constraints and the need to fund infrastructure.
  • “We couldn’t do that forever...We extended it to get past the holiday weekend.” — Kemp [19:46]
• Kemp positions Georgia as a model of fiscal discipline and affordability, in contrast to what he claims are fiscally mismanaged blue states and the federal government.

2026 Election Outlook

[22:43-25:25]

• Kemp expresses optimism about Republican prospects in Georgia and endorses Derek Dooley for Senate.

• He calls for the party to go on offense about its economic policies, not just play defense.

• On his own future, Kemp is noncommittal, insisting his focus remains on the 2026 cycle.

  • "We've had a great 20 year run...we need to keep that." — Kemp [24:12]

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War Powers Resolution and National Security

[27:22-34:55]

Symbolic Congressional Rebuke

[27:22-29:54]

• Anticipation of a 4pm House vote on the War Powers Resolution expected to pass, marking bipartisan dissatisfaction with Trump’s Iran strategy.
• Congressman Jake Auchincloss: “It crystallizes the American public’s opinion about what has been a disastrous war against Iran.” [28:59]
• He accuses the administration of lacking congressional authorization and failing to consult with allies.

Constitutional & Political Tensions

[29:54-33:12]

• Auchincloss argues the War Powers Act has failed in recent decades, calling for urgent reform to restore congressional authority over decisions of war.
• He bluntly rejects White House claims that the US is not at war:
  • “It’s a lie...This war was illegal on day one, not day 61.” [31:50]

FISA and the Intelligence Community

[33:12-36:55]

• Auchincloss won’t vote for long-term renewal of FISA without significant reforms.
• Raises alarms about the impact of inexperience and politicization at the top of the intelligence apparatus.
• Reiterates concerns over military overstretch in the Middle East and Indo-Pacific:
  • “The most important way that we can ensure that readiness in the Indo Pacific...is to prevent a third forever war in the Middle East.” [34:55]

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AI Policy and America’s Competitive Edge

[36:55-38:33]

• Trump administration scales back on AI oversight, shifting from a 90-day to a 30-day voluntary review for major models.
• Auchincloss voices strong opposition to tech lobby arguments that regulation hinders competition with China.
  • “We need to just say you're not going to use our kids as a natural resource to mine out of some claim that ... we’re going to out-compete China.” [36:55]
• Emphasizes that US biotech competitiveness—and general science policy—are as crucial as AI in the global contest with China. Warns that new NIH rules risk undercutting American innovation.

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Notable Quotes & Memorable Moments

• Rick Davis:
  • “There’s definitely a little more chippy mood amongst Republican members about Trump.” [05:32]
• Jeannie Shan Zaino:
  • “Donald Trump...his control of the Senate and House is waning a bit.” [03:37]
  • “You’re going to put somebody in there for 250-plus days...and they have no national security experience as the law requires.” [12:17]
• Governor Brian Kemp:
  • “Our rates are dropping and our generation’s going up.” [15:04]
  • “We couldn’t do that forever...We extended it to get past the holiday weekend.” [19:46]
• Congressman Jake Auchincloss:
  • “It crystallizes the American public’s opinion about what has been a disastrous war against Iran.” [28:59]
  • “It’s a lie...This war was illegal on day one, not day 61.” [31:50]
  • “We need to just say you're not going to use our kids as a natural resource to mine out of some claim that ... we’re going to out-compete China.” [36:55]

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Important Timestamps

• Capitol Hill outlook & funding fight: [00:40-05:32]
• Panel analysis of GOP shifts: [05:32-08:50]
• FISA/Pulte controversy: [08:50-13:15]
• Governor Kemp interview (energy & rates): [14:28-19:23]
• Gas tax & affordability: [19:23-21:26]
• Political outlook (GA & national): [22:43-25:25]
• War Powers, Iran, and military deployments: [27:22-34:55]
• AI oversight & US competitiveness: [36:55-38:33]
• Senate and electoral strategy: [39:00-40:00]

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Episode Tone and Style

• Lively, direct, and at times critical—particularly among panelists and guests discussing the shifting political winds.
• Governor Kemp is confident and policy-focused, highlighting Georgia’s management as a national model.
• Congressman Auchincloss brings an urgent and blunt perspective on war powers, intelligence, and tech regulation.

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This episode offers a comprehensive look at legislative maneuvering, policy debates, and simmering political divides as both parties prepare for consequential midterms. For listeners seeking an inside look at the real-time calculations driving Washington’s biggest battles, this episode provides clarity and candor from both Bloomberg’s analysts and policymakers themselves.

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Transcript

[Duke Energy Representative]

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[Kelly Leinz]

here in Washington, it's shaping up to be a very busy day on Capitol Hill as the House is back from the Memorial Day recess and as Joe just told you, they could in very short order be voting on a war powers resolution that could very well pass. If nothing but a symbol, it still would be a rebuke to the President. Meantime, the Senate, of course, is trying to get the wheels turning once again on Reconciliation, specifically funding ICE and CBP for three years in a bill had $72 billion worth of funding in it, a billion of which originally was supposed to go to the ballroom being built at the White House. That ballroom money is now stripped out of the legislation as that was one area where Republicans took a little bit of umbrage. Obviously they're also concerned about the DOJ's now dropped anti weaponization fund or at least dropped for now. So it all has created some hurdle in getting even a partisan reconciliation bill across the Senate floor. Remember, the Senate Majority Leader, John Thune needs 50 votes as he outlined yesterday.

[Rick Davis]

As I've conveyed to you before, everything

[Joe Matthew]

comes down to a function of math.

[Brian Kemp]

It's do we have the votes? Do we have 50 votes to execute on getting a bill like that across the floor? Because we have to have Republicans hanging

[Joe Matthew]

together in order to do that. But that was yesterday and things have changed, as Kayleigh mentioned, to the point where we now have what appears to be the skinny reconciliation bill that John Thune preferred. Now, ahead of our conversation that we're about to bring you with Georgia's Governor Brian Kemp, we assemble our political panel for their take on this breaking story. Bloomberg Politics contributors Rick Davis and Jeannie Shan Zaino are with us. Jeannie is our Democratic analyst and Democracy Visiting fellow at Harvard Kennedy School's Ash Center. Rick is a Republican strategist, of course, partner at Stone Court Capitol. I'll start with you, Rick, as our Republican here. Did John Thune just get everything he needs to make this happen?

[Rick Davis]

Yeah, I think the coast is clear. He's got the votes for the basic bill that funds Border Patrol and ice. Remember, this was part of the deal they cut to pass this funding measure as part of the opening up of the homeland security budget earlier this year after a record shutdown. So now the cycle will be complete. My guess is they'll try to do the vote a tonight while they have everybody and can still keep the coalition together that's willing to vote yes.

[Kelly Leinz]

Well, so when we consider the people who are willing to vote vote yes on the actual package, Jeannie, they may still ask for votes on other things. We actually heard this, our colleagues on Capitol Hill reporting that they spoke with Senator Thom Tillis who wants to make sure that he will get a vote on an amendment to permanently kill the DOJ's Anti Weaponization Fund. How many amendments that could rebuke the president even if he's getting what he wants in terms of funding for ICE and CVP across the Senate floor. Do you think we realistically could see pass?

[Jeannie Shan Zaino]

We could see a number of them pass, I think, Kelly, because I think when you know, the acting attorney general went up on the Hill yesterday and said this, you know, slush fund is a done deal, it's dead in the water. When he was asked would you codify that, would you put that in writing? He said no. And of course the other element of that, the shield on Donald Trump and his family and his businesses in terms of IRS investigations that he said remains in place. So I think we're going to see Republicans and Democrats come together on a number of those amendments to try to get people for Democrats, get Republicans to say and force them to go on the record in saying where they stand on these issues. And I think another thing, this is all a sign that Donald Trump, as he said just about a week ago, his control of the Senate and the House is waning a bit. He can see that now because what's going to come through here in the end is going to be this skinny reconciliation bill without all of the other add ons that he wanted in there.

[Joe Matthew]

So I mentioned a breaking headline that just crossed the terminal not having to do with this. But Anthropic now said to tap Morgan Stanley and Goldman Sachs to lead itself massive ipo. I will note that both stocks are lower right now and what was already a downdraft in the sector, Morgan Stanley's down $4, Goldman Sachs down 18. Roughly 2% losses for both of those as the firms gear up for anthropic. Rick Davis. Is the mood music actually changing for Donald Trump on Capitol Hill. When you consider the war powers vote that's about to pass, albeit symbolically in the House, when you consider the pushback on the ballroom, which by the way was supposed to include security money for the White House, the visceral reaction that Republican senators had to this anti weaponization fund. How do you characterize it?

[Rick Davis]

Well, there's definitely a little more chippy mood amongst Republican members about Trump. But remember, I mean, the ballroom was thrown out of this reconciliation bill because it didn't meet the parliamentary standards. So the parliamentary, the Senate really stripped it out. It wasn't angry Republicans. And, and that's another thing, too. I mean, a lot of these amendments Jeannie was talking about regarding this bill may not be germane to a reconciliation bill. So as much as they want these sort of performative votes, it doesn't mean they're actually going to make it into the bill. That's the trouble with reconciliation. But that being said, I mean, the War Powers Act, I mean, you know, it's a privileged motion. They're going to vote on it. They tried to avoid it in the House, but the leadership had to cave to the procedures again, that dictated the outcome. And obviously there are a lot of people, especially those members who are in Republican swing districts, you know, are they want to register their opposition to this war and may not have anything to do with actually stopping the war. But, but to insulate themselves from a pretty grumpy public in their districts who are saying, what the heck are we doing here? This goes on and on and on. And from what we've heard from the White House today in an interview with Donald Trump, it doesn't sound like there's any short term reconciliation of this conflict in the Strait of Hormuz. So everyone can now expect this to be a major political issue when it comes to the midterm elections.

[Kelly Leinz]

Well, of course, President Trump made those comments in an interview with the New York Post. And the New York Post is now reporting that President Trump is going to attend Game 3 of the NBA Finals in New York next week, Monday, June 8th. He's going to go watch the Knicks.

[Joe Matthew]

Is that courtside or sky box? What do you think?

[Kelly Leinz]

I don't know. Courtside might be kind of tough.

[Joe Matthew]

That would be a little service purpose.

[Kelly Leinz]

This is going to bookend the president's birthday, where he turns 80 on June 14th. On June 14th is the UFC fight at the White House. And we can see the construction of the octagon going up in real time. Just wanted to mention that for our audience Again, June 8, Trump will be in New York for that Knicks game. Jeannie, I don't know if you have tickets to that, but clearly the President is keeping himself occupied even as he's obviously still trying to figure out how to get ourselves out of a war in the Middle East.

[Jeannie Shan Zaino]

Absolutely. Kaylee, you're teasing me. I would love to go. It is all the rage here. I'm in New York. Please, Kaylee, give me tickets. I want to go and we'll see

[Kelly Leinz]

what we can do.

[Jeannie Shan Zaino]

Thank you. You're the woman to do. Would be fascinating if he sat on the floor. Can't imagine they could do that security wise. But yeah, I mean, the President is looking at a, you know, a huge couple of weeks here. Not to mention he turns 80 is a big moment. And also, of course, as we were just talking about everything going on with Congress and then just admitting, as you were just talking about, that the strait could remain closed until Labor Day in the midst of all of these primaries. I mean, I think to your previous point, I do think that this is a moment when Trump is starting to lose some of the sway he had over congressmen and women senators who are running for reelection and are finding it difficult to abide by some of what he has put forward in the last few weeks.

[Brian Kemp]

Interesting.

[Joe Matthew]

Jeannie, I think Rick Davis is the one with the sports connections. If you're looking for last minute tickets, there's a question, there's a question about FISA renewal and it's a question that Cayleigh and I were pursuing yesterday. We were told that this wasn't a thing, but apparently it is. Bloomberg News is reporting the pushback that we're seeing now to Bill Pulte being tapped as the President's new Director of Intelligence. The dni, Mark Warner, vice Chair of the Intel Committee, is asking John Thune to try to thumb the scale here on this and get the President to reconsider. Chuck Schumer is making similar overtures here, knowing that FISA 702 renewal is upon us. And if Bill Pulte is the man with the keys, not everybody on Capitol Hill is comfortable with this whole idea. It's something that is in the air on Capitol Hill as the President asks, of course, for a budget that is currently being drawn up on Capitol Hill. The Treasury Secretary was actually asked about Bill Pulte earlier today in a hearing that's actually still underway. Thom Tillis, the Republican from North Carolina, asked him about this report that he threatened to knock out Bill Pulte, knowing that there had been some Talk of Scott Besant getting in a bit of a dust up with Elon Musk. We actually had to bleep this. Rick and Jeannie, listen to how this went.

[Rick Davis]

Did you actually tell Polti you were

[Brian Kemp]

going to punch him in the face? No, sir, I actually said I was going to kick his.

[Rick Davis]

Good. Okay, good. I share the emotion. Thank you.

[Joe Matthew]

And as I said, that was last summer, summer 25.

[Brian Kemp]

And many teams have fights in the locker room and then go out and

[Congressman Jake Auchincloss]

win for the team on the table.

[Joe Matthew]

Rick Davis, does Thom Tillis illustrate the way most Republican senators feel about Bill Pulte? And could that jeopardize FISA renewal?

[Rick Davis]

Yeah, this is one of the hot topics in Washington today. The lobbyist lunch pools are heavy. Betting that the guy doesn't last 30 days on the job. Everyone's talking about it. It's a total nonstart. Nobody can figure out whether this is Trump just being Trump and driving everybody insane with no real intent to nominate him for the job. He's unconfirmable. And so really the question isn't what happens in that job with Bill Pulte, it's how long does he actually last in that job before somebody else gets appointed? So, yeah, it's just another day in Washington. But somebody's going to make money on the over and under on this. And I'm placing my bets to that.

[Congressman Jake Auchincloss]

Wow.

[Kelly Leinz]

Well, as we consider time here, whether it's the time that he actually is going to serve in this acting role, there's also the question, Jeannie, of President Trump's announcement timing in saying that he was going to be acting. Dni Tulsi Gabbard was supposed to be in the job until the end of this month. And instead the president announces at the beginning of June that Bill Pulte is coming in and did so less than 10 days before the FISA expiration deadline. FISA, of course, a key issue when we're considering the American intelligence apparatus. The president just not wait long enough. Should he have done this two weeks from now?

[Jeannie Shan Zaino]

Yeah, he should have never done it. If he was going to do it and he had the interests of national security for the United States at heart, he should obviously not do it. But if he's going to do it, he should wait until FISA had passed. I mean, Democrats have so much leverage on this thing because Republicans cannot and will not pass it on their own. And you nominate somebody like Bill Pulte and he is unconfirmable, but it's almost beside the point. He doesn't have to be confirmed, to be acting. And I think that is a big concern for so many of us who care about national security. You're going to put somebody in there for 250plus days, some odd days, and they have no national security experience as the law requires. And there's a lot of damage they could do to our national security and our allies in that time. So I would hope that Republicans and Democrats step up. But again, there's not a lot they can do because he's only acting. He won't come to the Hill for a vote.

[Kelly Leinz]

All right. Jeannie Shanzano and Rick Davis, Bloomberg Politics contributors, thank you both so much.

[Joe Matthew]

Stay with us on balance of power. We'll have much more coming up after this.

[Duke Energy Representative]

At Duke Energy, we deliver reliable energy that powers lives, grows businesses and transforms communities. That's why we're making smart investments to add up to 14 gigawatts of new capacity over the next five years. That's enough to power 10.5 million more homes, putting customers first, advancing American progress, powering the next generation. Learn more at duke-energy.com poweringamerica.

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[Kelly Leinz]

And I'm pleased to say joining us now from Las Vegas for an important conversation with the governor of Georgia is Bloomberg's Washington correspondent, Tyler Kendall. Tyler, we'll head it over to you.

[Tyler Kendall]

Hey Kelly, thanks so much. As you mentioned, I'm pleased to say that I'm joined now by Republican governor of Georgia, Brian Kemp. Governor, it's so nice to see you here in Las Vegas. Vegas. You're normally in Atlanta, I'm normally in Washington. But we both find our side ourselves here on the sidelines of an energy conference because the idea of electricity demand tied to data centers has become a nationwide issue. And we wanted to talk to you today because Georgia is one of the fastest growing markets when it comes to data centers. And I'm curious, how prepared is your electric grid for this influx in demand?

[Brian Kemp]

Well, we're very prepared. We got a great story to tell in Georgia and it's not just for data centers but also large load customers like the new Hyundai Metaplant. Marty and I were there yesterday rolling the first new Sportage Kia Sportage hybrid off of the line. So they're a huge power user. So we're not only ramping up our power supply for data centers, but also for large load customers. Also making sure we take care of all our residential and other small business customers in Georgia. We have a great story to tell. Our rates are dropping and our generation's going up.

[Tyler Kendall]

But a big part of this demand is coming from data centers because Southern company, which owns and operates Georgia Power, is estimating that power is expected to jump 10 to 8 to 10% annually, driven solely by the air build out. What can you share about how you are helping to keep rates down when you have these big tech companies that are coming in and there is this risk to consumers?

[Brian Kemp]

Well, we're charging the big tech companies more. I mean, we've got a great rate structure in Georgia. Our Public Service Commission, the Georgia General assembly, along with our power producers like Georgia Power have put a structure in that as we build the generation out and they're going to do that by half of what they have now just in the next, you know, less than 10 years. Which is pretty incredible that a state can do that to meet the demands of its customers, but also making them pay for that build out and tying that into rates long term. It's actually allowed Georgia Power a year or so ago to freeze residential rates for three years in Georgia. Since then, they've actually dropped residential rates by a few dollars a month. And in the future they're going to be giving money back to the ratepayers as this build out continues. So it's really unlike any other model in the country where you have other, other states, other markets where rates are going up anywhere from 15 to 30%. And for us, that's a great economic advantage for us to sell the state saying come, we have clean energy with Vogel 3 and 4 online now, a lot of solar, we can meet your needs, but also your cost is going to be as good as anywhere in the country.

[Tyler Kendall]

I'm glad that you brought up that rate freeze because I wanted to ask you about it because Georgia Power received one of the largest federal energy loans in history, $22 billion. But ratepayers are going to be on the hook to pay that loan back. Right. So should Georgia consider extending that rate freeze?

[Brian Kemp]

Well, it's. No. Well, they, they've actually done away with the rate freeze now and are lowering rates. So, you know, there was a rate freeze. Now they've gone back and said, hey, because of the business that we have come in, the way we've structured the deals, we're now going to be able to lower rates, rates by I can't Remember, five or six dollars a month per customer from the residential side. And then in the future with even more of this coming, also large load customers, like I mentioned, the Hyundai Meta plant, the Rivian plant is going to come online. We have other big manufacturers that are coming to our state producing great paying jobs with great benefits, bringing economic prosperity to all parts of our state. They're actually going to be able to lower rates and return money to the taxpayer. I know that is hard to believe because that is not happening anywhere else in the rest of the country, which is why our story is so compelling.

[Tyler Kendall]

Well, part of this is also coming into the politics of the state. We're seeing it in the gubernatorial race, your term limited, but we have the Democratic candidate, Keisha Lance Bottoms, advocating that we should see a freeze in construction when it comes to this. Has any party.

[Brian Kemp]

Well, that's just an insane position to take because you know, I was down in Early County Georgia, it's one of the poorest counties in the United States of America. And they as soon as I got out of the car were coming to me going, please help us with our data center. We want to build a data center here. We know that will provide good paying jobs for our community because they just had a sawmill that shut down and they know that it would be good for helping them reduce property taxes like they're doing in Columbia County. Now, I'm not saying we need to put a data center in every community. We certainly don't need to be pushing them in communities where the local governments and the people don't want it. But there are many places around the state where people do want it and that's where we need to work with them. So I think it's irresponsible for keys Lance Bottoms to say freeze construction. I mean, we're the number one state in the country for business. We're producing jobs in all parts of our state. And that is my goal that I'm going to continue to work on as long as I'm governor.

[Tyler Kendall]

If we broaden this out to beyond electricity prices, energy prices in general. Yesterday in Georgia we saw that suspension of the state gas tax expire. There is so much emphasis on this these days due to the ongoing conflict in Iran, which at this point we still don't have a resolution to. Why was now the right moment to let that suspension last?

[Brian Kemp]

Well, it's very expensive doing the gas tax suspension because we have to take money out of the state's reserve fund to put back into our road fund. So we don't Lose the ability to keep up our roads, bridges, paving roads for local communities and, and doing projects that are very important to the state. So we couldn't do that forever. You know, I appreciate the General assembly passing that bill during the legislative session. We extended it to get past the holiday weekend. And look, I'm like everybody else. I hope the conflict gets resolved sooner rather than later. And I believe that, you know, motor fuel and diesel fuel prices will drop. But if you look at what the state has been doing for affordability, I mean, at the same time we suspended the gas tax, he also had us given $250 rebates, income tax rebates, to everybody that paid taxes last year. $500 for a family. We've got a billion dollars of property tax relief coming to the citizens of our state. So we've been dealing with affordability for the last four years. This is the fourth year in a row we've done a income tax rebate. We've cut the income tax, both corporate and personal again this year. Fourth year in a row we did no ticks tax on tips, no tax on overtime. And so, you know, we wanted to help with the motor fuel situation to get people into the summer and help our school districts and other small businesses get past the holiday weekend.

[Tyler Kendall]

But we are gearing up for some of the busiest driving time in this country. I can say I did ask President Trump last week if the federal government is still considering a federal gas tax holiday. It seems to be something that still on the table, but they look at states like Georgia sort of as a template here on what would really work. Do you think that at the federal level that's something worth.

[Brian Kemp]

I think, you know, we're in a completely different situation. The federal government, we have to balance our budget. If you look at like a lot of the blue run states with Democratic governors, they're not in a position to do this because they don't have the money to replace it. That's going into a dedicated motor fuel fund to help keep roads paved, bridges built, and keep up with congestion demand in the state. We've been very fortunate because we budgeted conservatively, we had a robust rainy day fund, and we were able to offset the money that we're exempting for the tax. The federal government certainly doesn't have the money to do that, which I think is where some of the pushback that has come. So it's really been a testament to our state, to the leadership that we've had in our state to be able to even do this. As much as we have. And we've done this for several years, years now. We've returned or saved taxpayers over $12 billion just since we came out of COVID in the state of Georgia. There's not many states that can say per capita per person that amount of savings or refunds like we've done in Georgia. And it's because we've had good leadership, not just from the governor's office, but from the General Assembly. And that's what this election is all about. You know, you got Keisha Lance Bottoms wanting to put moratoriums on growth and business and driving our economy, and we're doing things like this to help people with affordability.

[Tyler Kendall]

Well, since you brought up politics in the final minutes, I have you I have a few questions on that, yes, on the gubernatorial race, but also there is a key runoff next week when it comes to the Senate seat. Do you think Republicans are positioned well right now in order to retain the majorities in Congress, given all of these headwinds that we're seeing around the affordable affordability issues that you yourself are talking?

[Brian Kemp]

Well, I think there's no doubt this is a challenging political environment and it always is for any, you know, majority party in the second term of a presidential administration, whether it's Donald Trump or anybody else. But I feel very optimistic because of the thing, at least in Georgia anyway, because of the things that we've been able to do in our state, the policies that we can run on and remind people of things that we pushed and that we have done and also what we're going to do in the future. I feel very optimistic. I also feel optimistic about, you know, getting one of our Senate seats back. I'm working hard for Derek Dooley, who I've endorsed to be our nominee because I think he's the best person that can beat Jon Ossoff and keep the majority of the U.S. senate. But also think Republicans got to get on offense. We cannot continue to be on defense. We need to be on offense about what's in the working families tax credit, all the good policies that the Trump administration is doing and not let the other side dictate what the political debate

[Tyler Kendall]

is going to be if Derek Dooley doesn't win that nomination. Do you think Republicans should be spending their resources elsewhere to help boost other Senate seats across the country so that they can retain the Senate majority?

[Brian Kemp]

Yeah, I wouldn't want to speak for any other, you know, national groups and what they might do, but I know that our political groups will. I mean, I'm going to be supporting our Republican nominees. We have to win in Georgia. We have a lot at stake. We've had a great 20 year run. When you think about our former governor Sonny Perdue, Governor Nathan Deal, my administration and we need to keep there's such a stark contrast between the Democrats and the Republicans and the kind of leadership that you would see in the governor's office and in the U.S. senate. And so, you know, I'm certainly going to be all in no matter what happens.

[Tyler Kendall]

So this is for 2026. Last question for you, Governor, your term limited, should we expect you to stay in public life after your term is over? I'm wondering if you have a timeline, a great question.

[Brian Kemp]

I'll have to come back and answer later.

[Tyler Kendall]

Any timeline.

[Brian Kemp]

My focus is on helping Derek Dooley the U.S. senate runoff. And then after we get that done, I'll be able to think about other things.

[Tyler Kendall]

But do you have any timeline on if you're going to make a decision about 2020?

[Brian Kemp]

I mean, I still got to serve till, you know, the first part of 2027 in this role, which it is very busy. And that is what my foot where my focus is going to be. And, and also helping make sure that our ticket wins in November. That is my number one priority.

[Tyler Kendall]

All right. Republican and governor of Georgia, Brian Kemp. Governor, thank you so much for spending time with us today here on Bloomberg Television and Radio. Joe and Kelly, I'll send it back to you in Washington.

[Joe Matthew]

Really great, Tyler, thank you so much. With us live from the Las Vegas Strip, Tyler Kendall and the governor of Georgia. He wasn't going there, but we'll keep asking him, as everyone does. Stay with us on balance of power. We'll have much more coming up after this.

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[Kelly Leinz]

I'm Kailey Leinz alongside Joe Matthew here in Washington, where the House is back in in session today. There's votes ongoing on the floor right now, but it's really a later vote this afternoon that we will be paying closest attention to. 4pm is when the House is expected to take up the War Powers Resolution, the very same one that leadership had to table or polled before the Memorial Day recess because given Republican absences, it looked like it could pass. Now they're back in town. They have no choice but to vote on this today because there is a clock on this particular resolution given House rules. And once again we could be dealing with a Republican House of Representatives that is not able to stop the passage of a resolution rebuking the President's strategy and operations in Iran. Yes, Joe, largely this is a symbolic vote either way. And yet taken in tandem with Republican pushback on the ballroom and the anti weaponization fund, even in some primary contests, it's starting to feel like a pattern.

[Tyler Kendall]

This is true.

[Joe Matthew]

And remember, the last time this hit the floor, it was yanked because it was going to pass. It ended up being a tie. And it does look like the Republican leaders in the House will not be able to block it this time. And it's where we start our conversation with Congressman Jake Auchincloss. He'll be there for that vote. The Democrat from Massachusetts joins us now from Capitol Hill. Is that what you Expect, Congressman, a 4:00pm vote and it will pass this time?

[Congressman Jake Auchincloss]

What I expect? Yes.

[Joe Matthew]

So obviously you've been spoken for on this and the question is, what happens now? Even if it passed, the Senate president wouldn't sign it. Is this a symbolic move? How important is that symbol?

[Congressman Jake Auchincloss]

It's important because it crystallizes the American public's opinion about what has been a disastrous war against Iran. This president started this war of choice without authorization, without consulting allies, without consulting Congress without planning for contingencies. And the result has been a massive increase in the prices of food, of fuel, of travel, upcoming this summer, and no material progress against his purported war aims. Nuclear enrichment, missile capabilities, funding of proxy terror forces. And so while it's true that this President would veto War Powers Resolution, what this also exemplifies is that Congress is starting to wake up from its constitutional slumber and is going to take back the steering wheel of foreign policy before he starts a third quagmire in the Middle East.

[Kelly Leinz]

Well, when we consider the President's veto authority, that's not the only route he could take. There's also the question as to whether or not the administration could challenge the very constitutionality of the War Powers act in court. Is it possible that in pursuing a War Powers Resolution, if it is indeed something that could end up in court and potentially be ruled against, that actually Congress will lose a great deal of its privileges when it comes to weighing in on armed conflict.

[Congressman Jake Auchincloss]

I think there's two tracks here. There's a political track and a constitutional track. The political track operates in tight feedback loops of a commander in chief getting feedback about his actions, both from Congress and from the American body politic. And that does matter. It mattered with ICE in Minnesota. It mattered with nih. Funding matters with the slush fund that they're now shutting down. When those feedback loops take out the legs of an out of control executive, there is political pushback in the framing that the Founders intended.

[Rick Davis]

Right.

[Congressman Jake Auchincloss]

Where ambition counteracts ambition and there are checks and balances, then there's the constitutional track. And the constitutional track is really actually to me more simple even than a legal fight over the war powers. The War Powers Resolution, the War Powers Act, I should say, is broken. It has been a session since the 1970s of congressional power to executives of both parties. And I think a first order of business for future Congresses, future administrations, needs to be fixing the War Powers act so that when the United States goes to war, it goes to war with Congress Article 1 declaring it.

[Joe Matthew]

Well, of course, Congressman, if you ask the White House, they would tell you that we are not at war and that we're in fact in a ceasefire right now. And I'd like to ask you, as both a lawmaker and a combat Marine Corps veteran, is it disingenuous to be telling the families of people serving in harm's way that we are in a ceasefire when in fact we're shooting at each other every day?

[Congressman Jake Auchincloss]

It's a lie. The United States is at war and I find it so shameful. Not just the administration's lies, but the complicity of Congressional Republicans. And you hear them torture the logic. It's really quite something. They'll say, oh well, they have 60 days. But then because there was a ceasefire, the clock actually restarts after those ceasefires. It's complete nonsense. This war was illegal on day one, not day 61 on day one. And here's why. The President can declare can launch hostilities in one of two circumstances. One is Congress as you can, and the second is an imminent threat to the security of the United States homeland. Neither of those contingencies existed when this President launched this war on day one. It was illegal on day one.

[Kelly Leinz]

Well, when we consider the threat assessment you allude to, Congressman, obviously that is informed by the nation intelligence gathering through our 18 intelligence agencies, all of which will now be overseen, at least on an acting basis by Bill Pulte, the FHFA chief who is now acting dni. We're seeing murmurs already in the Senate that this potentially could be disruptive to an extension of FISA section 702. Where do you come down on this issue? What's more important? Extending FISA for the sake of national security or using leverage to make sure Bill Pulte cannot serve in this role even on an acting basis?

[Congressman Jake Auchincloss]

Well, I'm not going to vote to extend FISA on a long term basis without significant reforms. Absolutely no interest in granting this administration more power when it's already abused the power it has so grotesquely. I don't know, Palti, my committee of jurisdiction doesn't cover hud, doesn't seem to have any credentials for the role he's taking. Taking on. But you know, actually my bigger concern is, is not just the personnel, it's whether intelligence is being incorporated into decision making for national security in general. You know, for example, there is 20 years worth of intelligence that indicates that Iran's response to kinetic attacks against it would be to close the Strait of Hormuz. There's more recent intelligence about Iran's drone and counter drone capabilities in that strait and it's use of Mitsubishi Mosquito fleet. None of that was incorporated into planning for this war at the highest levels. I think the President had his comms director and his deputy comms director in the National Security room when he made his final decision. Like regardless of who's in charge of intelligence, there is no intelligence being incorporated into war making powers at the, at the Commander in Chief level right now.

[Joe Matthew]

President said in a podcast interview, Congressman, that the Strait of Hormuz could be closed as well, he said, unlikely. Could be closed through Labor Day, implying to many that he does not plan to use military action to reopen the strait, that he's girding for a longer set of negotiations. And I wonder, with that said, if we need to start relieving some of the service members and some of the material that has been overextended in deployment in that area, do we need to start sending some boats home for refurbishment to send sailors and airmen home to their families?

[Congressman Jake Auchincloss]

Well, I think it's, it's certainly the case that Iran is going to have choke point control over the Strait of Hormuz, either expressly or by implication for months or even years to come. That's the strategic disaster of this war, is that we played our card of air dominance, which had been established with the 12 day war last year, and Iran matched that air dominance by picking up the card of sea denial through a strait through which 20% of the world's oil transits. It was just a massive strategic blunder despite the operational excellence of the US Military. Of course, we've got to take care of our troops and ensure that there's readiness not just in the Middle east, but also readiness in the Indo Pacific, where I do worry about a depletion of our, of our ability to operate in the South China Sea, in the Taiwan Strait and elsewhere. But the most important way that we can ensure that readiness in the Indo Pacific in that theater is to prevent a third forever war in the Middle East. The American public does not want to get bogged down yet again in that region of the world.

[Kelly Leinz]

Well, as you allude to another region of the world, the Indo Pacific and of course, another adversary there in China. Concern over ceding the lead we have on artificial intelligence to China is why we saw President Trump scale back an executive order on AI and coordination between government and AI companies on cybersecurity risks. Specifically, the government will now have a voluntary 30 day window to review models before they become public, rather than 90 days. And we just saw on Capitol Hill, according to our colleagues who report on Congress for Sam Alton and the CEO of OpenAI, walk into the Speaker's office for meetings today. And I just wonder if you think from a policy perspective if, if the U.S. government, both legislative and executive, is doing enough to address the threat of artificial intelligence, where the line is on making sure that we can innovate here in the United States and not cede ground to China, but also make sure there are guardrails.

[Congressman Jake Auchincloss]

Americans are pioneers and builders. We've always embraced science and technology. We shouldn't stop doing that. But what we should not allow is for the tech lobby to claim that if we're going to compete against China they have to have free reign to operate as they see fit. And I think the actual most pointed example of that is in how they exploit our children. These social media corporations meta TikTok, they are attention tracking our kids and they are going to double down on that nefarious business strategy by creating these companion bots that are going to further keep our kids scrolling and are going to further distort mental health and our kids sense of self in society. And we need to just say you're not going to use our kids as a natural resource to mine out of some claim that we're going to that how we're going to out compete China? Absolutely not. We're going to protect our kids cognitive development and mental health from what I think are the tobacco companies of the 21st century. So I have got no patience for that argument. I would also just say though we're talking about AI here. The other big sector where we're really competing on science and technology with China is biotechnology. That is not being discussed as much. To me it is just as important. And just recently this administration, in addition to the complete incompetence of the Food and Drug Administration, in addition to freezing grants at the National Institutes of Health, has put forward a new executive order rule that would allow the NIH to freeze grants based on political considerations. This kind of behavior is undercutting US biotech and science competitiveness at a time when China is investing hundreds of billions of dollars. And I really hope we have bipartisan pushback against it.

[Kelly Leinz]

Well Congressman, as I mentioned, Sam Altman is on the Hill today. We saw a main Democratic Senate candidate, Graham Platner on the Hill yesterday. He was meeting with senators. But of course you have personally said that you find his Nazi tattoo disqualifying even though you would not like to see Susan Collins, the Republican reelected. Did he reach out to you while he was in town to try to mend fences at all?

[Congressman Jake Auchincloss]

As you said, I've made my opinions on that race clear. What I'm thinking about today when it comes to the United States Senate is not Maine. It's what just happened in Iowa. You look at Josh Turek at and the campaign that he has run and the campaign he is going to win in November. He is a kind of Democrat that I can be proud of.

[Joe Matthew]

Really interesting. Are you going to be traveling in the next couple of months, Congressman, to help other Democratic candidates on the primary trail.

[Congressman Jake Auchincloss]

Yes. And as the chair of Majority Democrats, which is a group of 40 elected officials committing to reinventing the Democratic Party, I am in support of those elected officials, mayors, governors, members of Congress, and also our sister organization, the Bench has invested in about two dozen terrific candidates, Josh Turek being one of them. And I'll be in support of that full bench of candidates because ultimately, personnel, candidates, people, is what reinvigorates a party. And I'm so excited about the young talent that we're seeing across this country.

[Kelly Leinz]

All right, Congressman, thank you so much for joining us. Democratic Congressman Jake Auchincloss of Massachusetts joining us live from Capitol Hill. And of course, the congressman mentioning the victory for Josh Turek in Iowa yesterday. Also kind of a victory for Chuck Schumer.

[Jeannie Shan Zaino]

That's correct.

[Kelly Leinz]

Senate minority.

[Joe Matthew]

His endorsement was on the line.

[Kelly Leinz]

It was. That was one of the races we were watching. Of course, there were others, and many of them, we don't actually know the end result. California going to be counting ballots for some time to come.

[Joe Matthew]

Come on, guys. By the way, pretty artful there on the ground. That was quite a question. We just, we did a 180. I'm guessing that they didn't have dinner together last night.

[Kelly Leinz]

No, it didn't seem like that.

[Joe Matthew]

Thanks for listening to the Balance of Power podcast. Make sure to subscribe if you haven't already at Apple, Spotify or wherever you get your podcasts. And you can find us live every weekday from Washington, D.C. at Noontime [e-mail]

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