Graham blocks Trump-backed spending plan, calls it a 'bad deal' as shutdown nears

The Senate has a deal to fund the government, but Republican anger over the nature of the deal, earmarks and what changes could come to the Department of Homeland Security (DHS) derailed its progress Thursday night. 

Senate Minority Leader Chuck Schumer, D-N.Y., and President Donald Trump agreed to strip out the much-maligned DHS funding bill from a broader, six-bill funding package, and instead fund the agency with a two-week continuing resolution (CR), while lawmakers haggled over tweaks to the bill. 

Even though there is a deal backed by the White House that has key Democratic buy-in, there will still be a partial government shutdown this weekend, given that the House must weigh in on the package. 

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Toward the end of the night, Republicans had blasted through hold after hold, amendment request after amendment request, but one lawmaker stood in the way: Sen. Lindsey Graham, R-S.C. Without his buy-in, the package couldn't move forward.

Graham told reporters as he walked into Thune’s office late Thursday night that the package was a "bad deal." 

He was angered by the treatment of Immigration and Customs Enforcement (ICE) agents. Graham argued that ICE agents "are not infallible, but I appreciate what they're doing. I've never been more offended than I am right now by what's being said about these folks."

Graham was just one of many Senate Republicans who were not unified in their view of the deal or the underlying original package, which failed a key test vote Thursday afternoon — seven Republicans joined all Senate Democrats to spike it.

Once the deal crystallized and Trump publicly announced his support of it, Senate Majority Leader John Thune, R-S.D., and his leadership team went to work trying to quell resistance among their ranks Thursday night, but to no avail. 

"Tomorrow’s another day, and hopefully people will be in a spirit to try and get this done tomorrow," Thune told reporters as he left the Capitol Thursday night.

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Typically, when a package like the Trump-backed proposal is rushed to the Senate floor, it goes through what’s known as the hotline process in the Senate. That allows lawmakers to weigh in with approval, concerns, requests for amendments, or in some cases outright block the package from moving forward. 

Sources familiar with Senate Democrats’ planning told Fox News Digital that as of Thursday night, their side of the aisle had not started the process as they waited for Senate Republicans to figure out their next move.

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Part of the DHS funding bill included a repeal of a controversial provision that allowed senators whose phone records were subpoenaed during former Special Counsel Jack Smith’s Arctic Frost probe to sue for up to $500,000 for each infraction.

Graham has been a strong proponent of the provision, scuttling several attempts by Senate Democrats to repeal it over the last few months. 

When asked if his hold was related to its expected repeal, Graham said no and noted that he reached an agreement with the Senate Ethics Committee that wouldn’t allow him to financially gain from a lawsuit.

"We can find out a way forward, but not this way," Graham said.