House passes surveillance bill, but Senate may reject it over digital currency fight

House passes surveillance bill, but Senate may reject it over digital currency fight

The House voted 235-191 on Wednesday to extend Section 702 of the Foreign Intelligence Surveillance Act for three years, but the legislation faces a steep Senate obstacle that could derail the reauthorization entirely.

Section 702 grants the government broad authority to conduct warrantless surveillance of foreign targets. The provision expires at midnight Thursday, creating pressure on Congress to act before the tool lapses entirely.

The House bill includes a central bank digital currency ban that House Republican leaders inserted to secure votes from conservative members who had demanded stronger curbs on the surveillance program. That provision has become toxic in the Senate, where Majority Leader John Thune called it a "poison pill" that kills any chance of passage in his chamber.

The political math reflects a fracture within the GOP. House conservatives had blocked two earlier attempts to renew Section 702, forcing leadership to settle for a short-term extension earlier this month. That stopgap bought time for negotiations, but the final product appears to satisfy neither chamber.

Thune signaled the Senate will move forward with its own version of the surveillance renewal, one without the CBDC language. That bill would then return to the House for another vote, potentially creating a standoff neither side wants heading into a deadline.

The broader disagreement hinges on whether Section 702 needs meaningful reform. House conservatives have pushed for stricter protections around how the government uses surveillance data. Senate Republicans appear less inclined to tie those reforms to the reauthorization, preferring a straightforward extension.

If the chambers cannot resolve their differences, Section 702 could temporarily lapse, though Congress has historically managed to avoid such lapses through last-minute deals or extensions. The tight deadline and competing legislative priorities make negotiations urgent.

Author James Rodriguez: "The CBDC trap may actually hurt conservatives more than it helps them, since it shifts the focus from surveillance reform to a banking sideshow that will tank the bill."

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