Ethanol deal in sight as GOP leaders haggle over funding bill

GOP leaders are nearing a potential compromise with farm-state Republicans that will allow a $1.2 trillion government funding packageto move forward Thursday after a key ethanol provision was omitted, according to four people granted anonymity to comment on private negotiations.

Speaker Mike Johnson is discussing whether to include the provision allowing year-round sales of E15 fuel in a supplemental spending bill the Senate is working on moving this year to help farmers with tariff impacts or passing a separate House measure in the coming weeks. Separately, GOP leaders are working through issues with House Freedom Caucus members over possible amendment votes, according to two of the people and three other people granted anonymity to describe the deliberations.

About a dozen House Republicans met with Johnson about the matter late Wednesday morning, some of whom had threatened to oppose a procedural move vote to advance the funding package Thursday unless Johnson added on the E15 provision. Key farm and energy groups also pushed for the measure to be included at a meeting with White House officials Wednesday.

But those groups came away from the meeting with no commitments from the Trump administration, according to two other people granted anonymity to describe the private meeting. White House officials told the groups that including E15 in the supplemental package would be a better option for ethanol proponents than the funding bill now headed for passage, explaining the administration did not want to risk a government shutdown over the issue.

House Majority Leader Steve Scalise told reporters Wednesday evening he did not expect the base text of the bill to change before it is called up on the floor Thursday, meaning the ethanol provision would have to find another path to enactment.