The House on Thursday rejected a short-term extension of Section 702 of the Foreign Intelligence Surveillance Act, 198 to 218, leaving the warrantless surveillance authority on track to expire at midnight Friday. Later the same day, President Trump moved to address the standoff that sank the bill by announcing he would nominate Jay Clayton, the U.S. attorney for the Southern District of New York, as director of national intelligence.

The failed measure would have pushed the deadline to July 2. House Speaker Mike Johnson, a Louisiana Republican, fast-tracked the bill, requiring a two-thirds majority. The House will now leave town until June 23.

Pulte at the center

Democrats withheld their votes after Trump tapped housing regulator Bill Pulte to serve as acting director of national intelligence, a post that oversees the nation's spy agencies. House Democratic leadership said the appointment was in "defiance" of the law requiring the intelligence chief to have national security experience and that members "cannot in good conscience vote for reauthorization without significant reforms" to the FISA statute. Johnson called the decision "stunning."

Democratic Leader Hakeem Jeffries of New York said Pulte has "no relevant intelligence background." Pulte drew further criticism over his tenure at the Federal Housing Finance Agency, during which he accused several of Trump's foes of mortgage fraud.

Trump told reporters, "We can't let them extort us," and described Pulte's tenure as a temporary "renovation role" to downsize the office.

Clayton pivot

Later the same day, Trump announced he would send Clayton, a former Securities and Exchange Commission chairman, to the Senate for the permanent job. CIA Director John Ratcliffe recommended him. The Senate Intelligence Committee has scheduled Clayton's confirmation hearing for next Wednesday.

Clayton's earlier nomination as U.S. attorney in Manhattan stalled in the Senate before a federal judge appointed him to the post.

Warnings from the chairs

Republican Rep. Rick Crawford of Arkansas, chairman of the House Intelligence Committee, called a lapse "uncharted territory." During floor debate he said, "Once this authorization expires, the clock starts ticking. The implications get worse every single day. While the 702 database would remain available to search, the data in that database will become increasingly out of date."

Senate Intelligence Chairman Tom Cotton of Arkansas and Judiciary Chairman Chuck Grassley of Iowa told the administration to prepare "for a potential significant gap in foreign intelligence collection."

The Raskin caveat

Rep. Jamie Raskin of Maryland, the top Democrat on the House Judiciary Committee, disputed the alarm. "Government surveillance activities will continue unchanged," he said, arguing that "everything that's already been authorized and certified is already in motion, and current FISA authorizations will continue unaffected, at least through March 17, 2027." Section 702 lets the government collect the communications of noncitizens located outside the U.S. without a warrant.

Senate Majority Leader John Thune, a South Dakota Republican, said the selection of a permanent appointment would "play an important role in unlocking the support that we need to get FISA done." Clayton faces senators Wednesday. The House returns June 23. Asked whether he would recall members sooner, Johnson said, "What would be the point of me going through this exercise?"