The Scoop: Looming government shutdown signals comms discord among GOP leadership
Also: Nike turnaround hinges on return to sports roots; activist investor sends message of disapproval about Lamb Weston’s new CEO.
President-elect Donald Trump is doubling down on his request that Congress suspend the debt ceiling as part of any approved spending bill. However, as the threat of a possible government shutdown looms, the legislative body – largely led by members of his own party – have failed to cobble together a plan that would meet those goals ahead of a looming deadline.
The New York Times reported there were House Republicans who were “quietly floating the idea of a very short-term funding measure — with no other provisions attached” on Thursday to avoid a shutdown. The move would push the issue into January as Trump returns to the White House.
“There are a number of different options that the speaker is considering,” said Rep. Dusty Johnson, (R-South Dakota).
But after that vote, Trump urged lawmakers to “get rid of, or extend out to, perhaps, 2029, the ridiculous Debt Ceiling,” the Associated Press reported. “Without this, we should never make a deal.”
Unless House Speaker Mike Johnson and the rest of the Republicans come to an agreement before 12:01 a.m. Saturday, the government will shut down.
“Without this, we should never make a deal,” Trump wrote on social media. “Remember, the pressure is on whoever is President.”
Why it matters: This is a major moment for the second iteration of the Trump administration – and it’s happening a month before he’s even in office.
Not all citizens would feel the impact of a shutdown immediately, but those seeking to enroll in Medicare, Medicaid and many food assistance programs would likely face delays. National parks and federally funded museums would probably close or operate on limited hours, and other government programs would face risks as the shutdown dragged on.
From an optics standpoint, a failure to reach an agreement on a basic approach to government spending would send a message of discord and chaos within Republican ranks.
Some Democrats have already begun using the situation as a talking point against the GOP, according to The Hill. Rep. Greg Landsman (D-Ohio) argued that Trump and the Republicans wouldn’t feel the impacts of a shutdown, but everyday people would.
“It’s not going to hurt Trump or all those donors,” Landsman said on CNN, per The Hill. “These are multi-millionaires, billionaires…. They’re fine. It hurts our people.”
It’s also worth noting that President Biden has stayed out of the conversation altogether – letting the issue fall squarely on the shoulders of Republicans.
“Biden aides and allies cast the president’s silence over the last day-and-a-half as a strategic decision,” Politico wrote. “Trump is now poised to take the blame for any shutdown, they argued, damaging him politically even before he takes office. And they contend that anything Biden says now would risk hardening the GOP’s resolve, making it more difficult to strike a deal.”
As of this reporting, there were roughly 12 hours until a bill had to pass – an eternity in the political cycle. Regardless of what happens, this is a PR black eye for Trump.
Editor’s Top Reads
- Nike CEO Elliott Hill believes that refocusing on sports and athletes is key to the company’s turnaround. In his first earnings call as CEO, Hill admitted that Nike had “lost its obsession with sport,” which led to a loss of brand identity and a decline in market share. Nike shares have fallen over 36% in the past year due to a lack of product innovation and an over-reliance on promotions, which weakened the brand’s value, according to Yahoo Finance. Hill, a longtime Nike employee who returned two months ago, said the company plans to “put the athlete at the center of every decision” and “lead with sport.” This month, Nike has used storytelling and new partnerships to emphasize its return to sports, including long-term deals with global sporting powers such as the NFL, the Brazilian Football Confederation, as well as women’s basketball player Paige Bueckers, who became the first NIL athlete with a player edition shoe. For PR professionals, Hill’s strategy highlights the importance of staying true to a company’s core identity. Nike has had success as a luxury brand with Dunks and Air Jordans. But with competitors like Hoka and Adidas emerging in the athletic footwear market, Nike needs to remind the public of who it is and what it aspires to be.
- The Lamb Weston board’s choice for its new CEO faces strong criticism from an activist investor. On Thursday, the company announced that it would be replacing CEO Thomas Werner due to declining demand for its frozen potato products, which led to a sharp drop in its stock price. Michael Smith, the COO since May 2023, will take over. Chairperson W.G. Jurgensen called the appointment part of a “thoughtful, yearslong succession-planning process.” But activist investor Jana Partners, which owns 5% of the company, took issue with the personnel move, calling it “the latest stick in the eye from a board that has completely failed shareholders” and accusing Smith of being “complicit in its widespread operational and strategic debacles,” according to the Wall Street Journal. A company’s reputation hinges on the trust in its leaders. When a major stakeholder questions that leadership, it can harm not only the credibility of the leader but also the company and its bottom line. In its statement, Lamb Weston highlighted Smith’s qualifications and history with the company, including his past success in driving growth. But no amount of positive messaging can overcome internal doubts about your decision-making. You have to keep your house in order.
- Shopping malls – yes, those – are making a return in the marketplace in some areas thanks to younger people’s in-person shopping and the dining experiences those venues now offer. CNBC reported that many Gen Z consumers enjoy the mall experience, largely because developers have transformed empty retail spaces into housing, entertainment areas and restaurants. A report from October found that 17 of the 25 most popular mall brands, based on consumer interest, were restaurants, including The Cheesecake Factory. Eataly food halls are also popping up at malls. Restaurants now make up 10% to 20% of mall footprints by design, per CNBC. “Now, the dining options drive people there, and then you’re hoping that they’ll do a little shopping while they’re there,” David Henkes, senior principal at market research firm Technomic, told CNBC. The report reveals just how different Gen Z is from their parents. As such, it’s important that communicators and marketers avoid attempts to appeal to them in the same way as their parents simply because it’s worked in the past. As with any audience, it’s vital that communicators adapt to the needs, wants and interests when crafting a message. If you haven’t already, it’s time to start researching Gen Alpha. If you’re looking for them, they’re probably down at the mall.
Casey Weldon is a reporter for PR Daily. Follow him on LinkedIn.