Over the weekend, congressional leaders announced a $1.59 trillion deal on top-line spending levels for a new federal budget. The agreement may help to avoid a federal government shutdown as the latest funding resolution is due to expire in the next couple weeks.
The federal fiscal year runs from October 1 through September 30, and Congress is supposed to agree on a budget for the next fiscal year prior to the September 30 deadline. If Congress can’t agree by the deadline, they usually pass something called a “continuing resolution” that keeps the government funded beyond the start of the fiscal year. In the fall of 2023, Congress passed two continuing resolutions – one that expired in November and another that expires January 19 for certain federal agencies and February 2 for the others.
The top-line spending deal allocates $886 billion to military spending and $704 billion for non-defense spending. The deal paves the way for congressional appropriators to finish their work on the funding bills that will keep the government running after the continuing resolution expires.
While the top-line agreement signifies that congressional leaders are working in unison to pass a budget, it is not a guarantee that the federal government will not shut down. The funding bills still need to be passed by the House and Senate and signed into law by the president to avert a shutdown.
“The framework agreement to proceed will enable the appropriators to address many of the major challenges America faces at home and abroad,” wrote Senate Majority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) in a letter announcing the deal. “It will also allow us to keep the investments for hardworking American families secured by the legislative achievements of President Biden and Congressional Democrats.”
According to a CNBC article on the deal, House Speaker Mike Johnson (R-LA) acknowledged that the spending levels would “not satisfy” all parties, or cut as much as many had hoped for, but offers a way to “move the process forward.”
Read more on CNBC.