The United States Congress, comprising Republican and Democratic parties, reached an agreement on Sunday on the federal budget for the upcoming fiscal year, marking a significant step towards preventing a government shutdown in a year that will witness presidential elections.
House Speaker Mike Johnson, a Republican, stated on Sunday that congressional leaders have consented to a total federal spending level of $1.6 trillion for the fiscal year 2024 in an effort to avoid a partial government shutdown later in January.
Johnson further communicated to lawmakers that the agreed-upon total includes $886 billion for defense spending and $704 billion for non-defense expenditures.
President Joe Biden lauded the agreement, saying the deal "moves us a step closer to preventing an unnecessary government shutdown and protecting vital national priorities."
In his statement, Biden stressed that the agreement "avoids deep cuts to programs that working families rely on and provides a path to passing full-year appropriations bills that meet the needs of the American people, free from extreme policies."
The Clock is Ticking
However, time is running out for both parties in Congress to finalize the details of the spending operations and adopt the bill before the deadline on January 19th, by which some federal agencies will find themselves without funding.
In a joint statement, Senate Democratic Majority Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries said that by securing $772.7 billion for estimated non-defense funding, "we can safeguard essential national priorities such as veterans' benefits, healthcare, and food assistance against the harsh cuts desired by far-right extremists."
The statement also mentioned that the agreement paves the way for Congress to act in the coming weeks to maintain significant funding priorities for the American people and prevent a government shutdown.
The deal is likely to incense the extreme right-wing faction of Johnson's party in the House, especially after many members from this faction pressed for "tightening the belt” on budget levels.
The Republican-controlled House and the Democrat-led Senate still need to agree on how these funds will be allocated.
Johnson noted in his message that "the ultimate spending levels will not please everyone and will not reduce spending as much many of us would prefer."
What is a Government Shutdown?
A government shutdown occurs when financial resources are unavailable for spending on certain departments or agencies, forcing them to close their doors. All government entities depend on financial allocations determined annually by Congress before the beginning of the fiscal year (October 1st to September 30th).
Congress traditionally passes the budget bill after lengthy negotiations between the parties and various stakeholders affected by this budget, then it is presented to the president to be signed into law.
The budget bill is divided into 12 appropriations bills handled by the 12 subcommittees of the House Committee on Appropriations.
