Agreement on US Spending Reached as Shutdown Deadline Approaches

According to reports from local media, US Congress leaders have reached an agreement on the total amount of spending for the remainder of 2024 in order to avoid a partial government shutdown. The deal, which is worth $1.6tn, includes $886bn for defense and over $704bn for non-defense spending. However, there seems to be some disagreement over these numbers. The agreement must now be approved by both the House of Representatives and the Senate. They have less than two weeks to finalize funding and prevent the suspension of certain federal services. House Minority Leader Hakeem Jeffries and Senate Majority Leader Chuck Schumer, both Democrats, released a statement stating that the agreed-upon amount for non-defense spending is $772bn. Republican House Speaker Mike Johnson, in a letter to colleagues, acknowledged that the funding amount "will not satisfy everyone" and does not cut spending as much as some would like. Republicans have been striving to freeze overall government spending by making cuts to certain budgets. Sunday's deal includes increased protection against cuts to benefits and health, a demand made by Democrats. Jeffries and Schumer expressed that the agreement paves the way for Congress to prioritize important funding and prevent a government shutdown. President Joe Biden commented that the agreement brings the nation closer to avoiding an unnecessary shutdown and protecting crucial national priorities. Negotiations will resume in Washington on Monday, with lawmakers having until January 19th to settle funding for various programs, including transportation, housing, and energy. Additionally, another funding deadline for sectors like defense is set for February 2nd. In October, the government reached a short-term agreement to temporarily prevent a federal shutdown, which President Biden signed into law. Shutdowns typically occur when both chambers of Congress fail to agree on the approximately 30% of federal spending that they must approve before the start of each fiscal year. Given the slim majority Republicans hold in the House and the Democrats' narrow hold on the Senate, any funding measure requires bipartisan support. However, recent efforts to pass spending bills in the House have been hindered by right-wing Republican rebels. Furthermore, Congress has yet to reach an agreement on a separate bill that includes $50bn of military aid to Ukraine, as debates regarding migration policy at the southern border continue. The exclusion of new aid for Kyiv in the October short-term deal was a significant setback for Democrats, who viewed it as a crucial demand. Some Republicans argue that further funding would not serve America's interests. To date, Congress has approved over $100bn in military, humanitarian, and economic aid to Ukraine since Russia began its full-scale invasion last year. Discussions are also ongoing regarding additional security aid for Israel as it strives to combat Hamas after the attacks on October 7th.