Federal budget fight could stall midstream permitting

Speaker of the House Mike Johnson (R-LA). Photo by Gage Skidmore.

The clock is ticking to avoid an Oct. 1 government shutdown while factions within the U.S. Congress continue wrangling over the federal budget. Agreement on a spending bill for the full fiscal year will take longer, but a short-term continuing resolution is needed to avoid shutting down government functions considered non-essential, including agency permitting of midstream projects.

House Speaker Mike Johnson backed off a scheduled vote on a temporary spending bill last week to get support for a package that would keep the government running at current levels and include an unrelated law that would require proof of U.S. citizenship to register to vote. Tacking on immigration-related issue when non-citizen voting is already a federal offense makes it unpalatable to most House Democrats and the Democrat-controlled Senate.

On Sept. 17, Johnson again called for a vote on a six-month continuing resolution for funding to the end of March but still hadn't mustered enough support from Republican party members leading into a possible Wednesday vote.

Some GOP lawmakers want a shorter-term continuation that would leave the next round of budget negotiation for December and a lame-duck Congress. Others believe letting the government shut down could force the hand of Democrats on immigration issues.

Even a brief shutdown could delay everything with a federal nexus for midstream companies, particularly environmental reviews and permitting. A short-term shut down of a few days can cause weeks of delays after the government is funded.

All of this is happening even as early voting is about to get underway for some key elections including the presidency.

Vice President Kamala Harris and has tightened the race post-debate, with polls from many swing states within the margin for error. National polls indicate voters narrowly favor Harris, but the race remains close and difficult to predict.

Like Harris, former President Donald Trump is chasing swing-state voters. He announced there will be no more presidential debates.

A vice presidential-candidate debate on Oct. 1 is the next major event when Harris running mate and Minnesota Governor Tim Walz takes the stage against Trump VP-pick J.D. Vance, a U.S. Senator for Ohio.

While energy policy hasn't been the center of attention in the race, Harris is expected to continue greenhouse gas emission reduction programs launched during the Biden administration. She has backed off a 2019 position calling for a complete ban on hydraulic fracturing.

Trump backs an expansion of domestic oil and gas drilling, and agency heads appointed during his administration were tasked with reducing the number and scope of regulations on the industry.

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