Jim Pfaff on the Fight to Slash Federal Spending and Reclaim Conservative Power
Published: October 02, 2025
Network: The Conservative Caucus
Analysis: Conservative Caucus President Jim Pfaff
The battle over government spending cuts has reached a critical juncture as Republicans leverage a government shutdown to force long-overdue reductions in federal expenditures. Jim Pfaff, President of The Conservative Caucus, explains why this moment represents the best opportunity in decades to fundamentally reshape Washington’s spending habits—and why Republicans must not back down despite Democrat resistance and media pressure.
Topics Covered
- Understanding the Continuing Resolution Strategy
- The Broken Appropriations Process
- Schumer’s Push for Illegal Immigrant Healthcare Funding
- Rolling Back COVID-Era Spending
- The Coming Federal Workforce Reduction
- Why Republicans Hold All the Cards
Understanding the Continuing Resolution Strategy
The House passed a continuing resolution (CR) in mid-September with a strategic twist that conservatives have long advocated: they passed the bill and immediately left town, forcing the Senate’s hand. This CR would fund the government through November 21st while the House works to complete its 12 separate appropriations bills.
While continuing resolutions represent a flawed process—Congress should complete its work on time—this particular approach marks a significant tactical improvement. Rather than capitulating to Senate demands or rushing through an omnibus spending package, House Republicans are using their leverage to force meaningful negotiations.
“This frankly was a good strategy. This continuing resolution would have funded the government through November 21st because the House hasn’t finished its 12 appropriations bills.”
— Jim Pfaff, President, The Conservative Caucus
The Broken Appropriations Process
Congress hasn’t passed all 12 appropriations bills in a single fiscal year since 1998—a stunning failure of basic legislative responsibility. These 12 bills cover distinct areas of government function, are developed in relevant committees, and should receive separate floor votes, often with amendment opportunities.
The shift away from this traditional process toward massive omnibus bills has enabled runaway spending by obscuring individual programs and preventing meaningful debate. While continuing resolutions have historical precedent—appearing during the Reagan administration and the 1990s—past Congresses still managed to complete the appropriations process despite occasional delays.
The 12 Appropriations Bills
Congress divides federal spending into 12 separate appropriations bills covering different government functions. This process allows for detailed scrutiny of spending in each area. The abandonment of this process in favor of massive omnibus bills has contributed directly to America’s $37 trillion debt crisis.
Schumer’s Push for Illegal Immigrant Healthcare Funding
Senate Majority Leader Chuck Schumer claims he’s not seeking to fund healthcare for illegal aliens, but the facts tell a different story. Democrats are attempting to reverse provisions in the recent reconciliation bill that eliminated Medicaid funding loopholes benefiting illegal immigrants—a change estimated to cost $1.5 trillion.
This represents the core of the current standoff. While Schumer and Hakeem Jeffries position themselves as reasonable actors seeking to protect healthcare access, they’re actually fighting to restore funding streams that direct taxpayer dollars to individuals in the country illegally. President Trump’s viral parody videos mocking this position, while controversial to some, effectively highlight the absurdity of the Democrat position.
“Schumer is out there saying, Chuck Schumer is saying that, denying that what he wants is to fund healthcare for illegal aliens. But that’s a lie. It’s an absolute lie.”
— Jim Pfaff, President, The Conservative Caucus
Rolling Back COVID-Era Spending
One component of the current debate involves COVID-era credits in Obamacare that were instituted in 2020 when unemployment spiked due to pandemic lockdowns. These temporary measures, designed to help people who lost their jobs, have no justification for continuation in today’s economy.
Democrats claim that allowing these credits to expire will endanger Americans’ healthcare, but this argument doesn’t withstand scrutiny. The employment situation has fundamentally changed since 2020, and continuing emergency spending measures contributes directly to the national debt crisis. Healthcare isn’t “in trouble”—what’s in trouble is fiscal responsibility.
The Coming Federal Workforce Reduction
The most significant opportunity presented by the current shutdown involves implementing reductions in force (RIF)—essentially layoffs of federal employees. Russ Vought, Director of the Office of Management and Budget, has indicated plans for potentially 300,000 fewer government employees.
This move has already triggered a lawsuit from the government employees union, which was entirely predictable. However, the legal challenge shouldn’t deter implementation of necessary workforce reductions. The Biden administration significantly expanded federal employment, adding government workers at federal, state, and local levels in numbers that far exceeded genuine need.
Federal Workforce Expansion Under Biden
One of the largest components of employment growth during the Biden administration came from new government employees at federal, state, and local levels. This expansion of the government workforce represented a massive increase in permanent spending obligations that the country cannot sustain.
During a government shutdown, incoming revenue continues to fund essential government functions, Social Security, Medicare, and other core programs. What stops is the bloated bureaucracy that extends far beyond constitutional government functions. From a conservative constitutional perspective, approximately three-quarters of the federal budget funds programs without clear constitutional authorization.
Why Republicans Hold All the Cards
The political landscape strongly favors Republican resolve in this standoff. Polling, including surprisingly from The New York Times, shows Democrats in a difficult position over the shutdown. Other polls claiming Republicans will bear the blame appear to be outliers designed to create false narratives and weaken Republican resolve.
Republicans must not repeat past mistakes of backing down when Democrats and their media allies apply pressure. With President Trump in the White House, the party has leadership willing to maintain the fight—a crucial difference from previous shutdown battles.
“Republicans should not be scared of getting blamed for this. There’s no reason to concern themselves for getting blamed. The polls are showing that the Republicans are doing fine.”
— Jim Pfaff, President, The Conservative Caucus
Democrats are operating from a position of weakness, despite their public posturing. Chuck Schumer faces a potential primary challenge from Alexandria Ocasio-Cortez in New York and is desperate to secure wins that might shore up his position. The party’s strategy relies on Republicans losing their nerve—a calculation that only works if Republicans cooperate in their own defeat.
President Trump’s use of parody videos and social media mockery, while criticized by some conservatives who prefer more “dignified” approaches, serves a strategic purpose. These communications demonstrate that Democrats don’t have the power they’re attempting to project. When Republicans show they’re unafraid of media criticism and willing to fight on cultural and political terms, they expose Democrat weakness.
The Path Forward on Government Spending Cuts
The current shutdown represents just the opening salvo in a longer campaign for government spending cuts. Even if Republicans secure favorable terms in the immediate CR negotiation, another spending battle looms when the appropriations bills move forward—and those bills contain problematic provisions that will require continued vigilance.
Looking ahead to the next reconciliation bill process beginning at year’s end, Republicans must push for additional cuts. The current moment creates momentum that shouldn’t be squandered. With OMB Director Russ Vought implementing workforce reductions and President Trump backing aggressive cost-cutting, the conditions exist for meaningful reform.
The key is maintaining pressure on Republican legislators who might be tempted to compromise away hard-won gains. Grassroots conservatives must stay engaged, informed, and ready to hold their representatives accountable. The goal isn’t merely winning this particular fight—it’s establishing a new normal where government spending cuts become routine rather than exceptional.
Constitutional Spending Levels
From a strict constitutional perspective, the federal government should operate on roughly one-quarter of its current budget. Returning to constitutional spending levels would require eliminating the vast majority of programs created over decades of federal overreach—a long-term goal that requires sustained political will and public support.
Key Takeaways
- Strategic CR Approach – The House’s decision to pass a continuing resolution and leave town represents sound tactical thinking, forcing the Senate to negotiate rather than dictate terms.
- Medicaid Loophole Fight – Despite denials, Democrats are fighting to restore $1.5 trillion in Medicaid funding that would benefit illegal immigrants, making this a clear policy distinction for voters.
- COVID Credits Must End – Temporary pandemic-era spending measures have no justification for continuation and contribute to unsustainable debt growth.
- Workforce Reduction Opportunity – The potential elimination of 300,000 federal positions would reverse the Biden administration’s government employment expansion and generate significant savings.
- Republicans Have Political Advantage – Polling shows the public supports the Republican position, and Democrats are operating from weakness despite their media positioning.
- Trump’s Leadership Matters – Having a president willing to fight and use unconventional communication tactics prevents the traditional Republican pattern of premature surrender.
- Long-Term Fight Ahead – The current shutdown is one battle in a longer campaign for government spending cuts that will require sustained pressure through the appropriations process and next reconciliation bill.
- Constitutional Government Goal – The ultimate objective should be returning to constitutional spending levels, which would require eliminating approximately three-quarters of current federal programs.
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About The Conservative Caucus:
The Conservative Caucus is a grassroots public policy action organization, formed in 1974. Headed by President Jim Pfaff, the Caucus is committed to advancing free enterprise, limited government, and traditional values.
Originally broadcast October 02, 2025 on The Conservative Caucus.
Peter J. Thomas is a veteran conservative political strategist and seasoned policy expert dedicated to upholding the principles of the Constitution and democracy. As a founder and the chairman of the Conservative Caucus, he has played a pivotal role in promoting and shaping the conservative agenda across the nation for over half a century.