Media reports reveal that US Congressional leaders have reached a spending deal for this year's government funding, aiming to avert a potential partial shutdown as the deadline looms. The agreement, brokered by Republican House Speaker Mike Johnson and Democratic Senate Majority Leader Chuck Schumer, outlines a $1.59 trillion budget for fiscal year 2024. This allocation designates $886 billion for defense spending and $704 billion for non-defense expenditure, as reported by CNN.
In addition to this primary allocation, the leaders finalized a $69 billion side deal earmarked for adjustments in non-defense domestic spending.
However, the agreement hinges on approval from both the House of Representatives and the Senate, with less than two weeks remaining to finalize funding and prevent the suspension of crucial federal services, according to BBC reports.
Speaker Johnson acknowledged in a letter to colleagues that while this funding package may not appease everyone and doesn't trim spending to the extent desired by many, it's a necessary step forward.
A joint statement from Schumer and Senate Minority Leader Hakeem Jeffries emphasized that the agreement paves the way for Congress to prioritize crucial funding, averting a government shutdown.
President Joe Biden echoed this sentiment, highlighting that the deal represents progress in preventing an unnecessary government shutdown and safeguarding vital national priorities, BBC reports.
Negotiations are set to resume in Washington on Monday after the year-end holiday break. Congress faces a deadline of January 19 to finalize funding for essential programs encompassing transport, housing, and energy. Another tranche of annual funding, especially for defense sectors, is slated to expire on February 2.
This overall spending agreement follows the government's short-term deal in October 2023, temporarily avoiding a federal shutdown, which was signed into law by President Biden moments before the deadline.
Federal shutdowns typically occur when Congress fails to agree on approximately 30% of federal spending required before the start of each fiscal year on October 1.
(With Agency Inputs)
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