In a recent Senate report, approximately $900 billion in wasted funds has raised concerns about government spending. As a critical step to avoid a potential shutdown, House and Senate negotiators have reached an agreement on a government funding top line. This bipartisan deal sets the federal government’s discretionary spending at a maximum level of $1.59 trillion. Speaker Mike Johnson, a Republican from Louisiana, wrote in a letter to colleagues that the agreement includes $886 billion for defense and $704 billion for nondefense spending.
The $1.59 trillion figure was a result of the Fiscal Responsibility Act (FRA) last year, which was a compromise reached during the debt limit talks between President Biden and then-Speaker Kevin McCarthy, a Republican from California. Democratic leaders have also stated that the final top line will include an additional $69 billion in nondefense discretionary spending, which was part of a side deal between McCarthy and Biden at the time. This would bring the total spending to approximately $1.66 trillion.
However, Johnson has suggested that additional cuts to discretionary spending will be made to offset these side deals. He explained in his letter that the agreement achieved modifications to secure more than $16 billion in additional spending cuts, resulting in an overall $30 billion reduction from the Senate’s spending plans. While Johnson acknowledged that these spending levels may not satisfy everyone, he highlighted that the deal provides a path to move the process forward, reprioritize funding towards conservative objectives, and fight for important policy riders.
Democrats have also celebrated the agreement, as Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries released a statement emphasizing that it clears the way for Congress to maintain important funding priorities. However, there is still a looming showdown as Johnson expressed his desire for conservative policy riders to be included in the final spending agreement.
President Biden, while considering the deal a win, took a hostile posture towards House Republicans. He urged them to fulfill their basic responsibility to fund critical domestic and national security priorities and to stop threatening to shut down the government. The current government funding levels are set to expire partially on January 19, with remaining agencies and offices funded through February 2.
In the midst of these negotiations, a growing contingent of GOP hardliners is calling on House Republican leaders to block government funding progress until Democrats make conservative policy concessions regarding the border crisis. The outcome of these ongoing discussions will have significant implications for the future of government funding and the priorities of both parties.
Elizabeth Elkind, a reporter for Digital focused on Congress and the intersection of Artificial Intelligence and politics, contributed to this article.
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