Congressional leaders have reached a bipartisan agreement on the federal government’s spending —a move aimed at averting a potential partial government shutdown later this month. The deal, involving both the House and Senate, centers on a $1.59 trillion funding package, which President Biden believes will advance key national priorities.
This new fiscal plan adheres to previously set spending caps for defense and domestic programs, as outlined in a bill that postponed the debt limit until 2025. However, it also makes concessions to House Republicans, who had expressed dissatisfaction with the spending limits in the earlier agreement. House Speaker Mike Johnson highlighted that this deal includes $16 billion in additional spending cuts compared to the arrangement made by then-Speaker Kevin McCarthy and President Biden. The current agreement proposes about $30 billion less than the Senate initially considered.
The agreement brings the nation closer to avoiding a government shutdown while safeguarding crucial national interests.
Significantly, the agreement accelerates approximately $20 billion in previously agreed cuts to the Internal Revenue Service and cancels around $6 billion in unspent COVID relief funds. This financial arrangement is crucial for lawmakers to establish specific funding for government agencies, with some agencies facing funding lapses as soon as January 19 and others by February 2.
This agreement is distinct from ongoing negotiations for extra funding for Israel and Ukraine and discussions about asylum claim restrictions at the U.S. border.