House Speaker Mike Johnson and Senate Majority Leader Chuck Schumer have announced an agreement on topline spending levels in a significant development for the U.S. government’s budgetary plans in the new year.
While this breakthrough clears the way for Congress to act and maintain crucial funding priorities, the looming threat of a government shutdown still persists as the first of two deadlines approaches on January 19.
Agreement on Topline Spending Levels
The bipartisan topline appropriations agreement establishes an overall spending level of $1.59 trillion for fiscal year 2024, in line with the bipartisan budget deal negotiated by President Joe Biden and former Speaker Kevin McCarthy.
The breakdown of the allocated funds includes $886 billion for the military and $704 billion for nondefense spending. It is important to note that these final spending levels may not satisfy everyone and do not achieve the desired level of spending cuts.
However, they provide a path forward for Congress to prioritize funding and address important policy riders.
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To reduce nonmilitary spending, the agreement includes key modifications and a $16 billion offset. This offset comprises $6.1 billion in unused Covid funds and $10 billion in IRS money under the Inflation Reduction Act.
By making these adjustments, Congress aims to direct funding towards conservative objectives and reprioritize budget allocations, moving away from the previous Schumer-Pelosi omnibus package.
When factoring in the added $69 billion, the nondefense discretionary spending level for the new fiscal year would be $772.7 billion under the agreement.
This framework agreement enables appropriators to address major challenges both domestically and abroad. It also ensures that the investments for hardworking American families, secured by the legislative achievements of President Biden and Congressional Democrats, are upheld.
Importantly, Democrats have made it clear that they will not support including poison pill policy changes in any of the twelve appropriations bills presented before Congress.
Next Steps and Challenges Ahead
While the agreement on topline spending levels is a significant breakthrough, there are still hurdles to overcome in passing funding legislation.
The Republican-led House and Democratic-controlled Senate must establish how to allocate the funds and reach a consensus on the individual spending bills.
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This process involves writing, publishing, and passing legislation through both chambers in a limited timeframe.
Failure to meet these deadlines could result in a government shutdown, as some parts of the government will run out of money on January 19, with the rest facing a funding expiration on February 2.
Conservative Concerns and Potential Obstacles
Some conservative hard-liners, such as Rep. Chip Roy of Texas, have expressed dissatisfaction with the emerging details of the agreement.
The spending level, including nondefense adjustments, amounts to $1.644 trillion, triggering concerns among fiscal conservatives who demand deeper spending cuts.
Additionally, conservative lawmakers like Rep. Bob Good of Virginia and Rep. Matt Gaetz of Florida have threatened a shutdown unless Congress addresses immigration and asylum laws.
These conservative demands pose potential obstacles to passing the funding legislation and reaching a final compromise.
President Biden’s Support and Call to Action
President Biden praised the bipartisan funding framework and called on congressional Republicans to fulfill their responsibility to fund critical domestic and national security priorities.
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“The bipartisan funding framework congressional leaders have reached moves us one step closer to preventing a needless government shutdown and protecting important national priorities. It reflects the funding levels that I negotiated with both parties and signed into law last spring. It rejects deep cuts to programs hardworking families count on, and provides a path to passing full-year funding bills that deliver for the American people and are free of any extreme policies. I want to thank Leaders Schumer and Jeffries for their leadership in reaching this framework. Now, congressional Republicans must do their job, stop threatening to shut down the government, and fulfill their basic responsibility to fund critical domestic and national security priorities, including my supplemental request. It’s time for them to act,” said Biden in a statement.
While the agreement moves closer to preventing a government shutdown, further cooperation and action are would be needed from congressional Republicans.
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