Leaders in Congress reveal a budget agreement designed to prevent the upcoming government shutdown.
Leaders in Congress have reached a consensus regarding the overall cost of the impending series of government spending bills, as revealed by legislators on Sunday. This development signifies a crucial advancement in averting a partial shutdown slated for later this month.
The agreed-upon arrangement establishes the top-line expenditure for the fiscal year 2024 at $1.59 trillion, aligning with the initial understanding between President Joe Biden and former House Speaker Kevin McCarthy during discussions on the government’s debt limit last year.
The proposed framework upholds the previously designated $886 billion for defense funding in the 2024 fiscal year and retains the $704 billion for non-defense spending—a contentious issue among Democrats in the debt limit negotiations.
Having reached consensus on these figures, lawmakers in both the House and Senate can now concentrate on formulating the text for individual spending bills. This has been a persistent point of contention on Capitol Hill, particularly among House Republicans, some of whom removed McCarthy in October due to internal conflicts over the approach to spending legislation.
House Speaker Mike Johnson, McCarthy’s successor, verified the critical details of the agreement in a communication to colleagues on Sunday afternoon. He highlighted concessions secured by Republicans, including a rapid reduction of $10 billion in IRS funding and the recovery of approximately $6 billion in unused COVID-19 relief funds.
Acknowledging that the final spending levels may not be universally satisfying and might not achieve as much spending reduction as some would prefer, Johnson underscored that the agreement facilitates the funding process while allowing negotiators to “reprioritize funding within the topline towards conservative objectives.”
However, the new speaker might face resistance in garnering support for this deal from some conservatives who sought more substantial budget cuts. Nevertheless, the agreement sets the stage for legislators to expedite the drafting and passage of spending bills before the imminent government funding deadline on January 19.
Several programs, including agriculture, energy, housing, and transportation, are poised to exhaust their funds on that date according to the latest temporary government funding bill passed by Congress in the fall. Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries jointly asserted on Sunday that the agreement is a Democratic triumph, preserving Biden’s negotiations while sidestepping Republican objections.
President Joe Biden endorsed the funding framework, stating in a Sunday release that it “rejects deep cuts to programs hardworking families count on.” He also urged congressional Republicans to reach an accord on border funds and military aid for Israel and Ukraine—issues entangled in Washington as conservatives advocate for significant changes to immigration policy.
With the government shutdown deadline looming, lawmakers must act promptly. Johnson, in his letter, vowed to advocate for key policy measures favored by Republicans. However, Schumer and Jeffries made it clear that they oppose “poison pill policy changes.”
Senator Patty Murray, the leading Democrat on the appropriations committee, stressed the urgency of the situation in a Sunday statement, stating that “we cannot afford to delay further.” She committed to working tirelessly with colleagues to avert an unnecessary shutdown and pass bipartisan spending bills devoid of partisan obstacles, safeguarding crucial investments and addressing constituents’ challenges.
