{"id":27885,"date":"2024-01-08T13:40:17","date_gmt":"2024-01-08T13:40:17","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2024\/01\/08\/congressional-leaders-agree-on-spending-key-step-to-averting-shutdown\/"},"modified":"2026-08-08T05:14:08","modified_gmt":"2026-08-08T05:14:08","slug":"congressional-leaders-agree-on-spending-key-step-to-averting-shutdown","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/budget\/2024\/01\/08\/congressional-leaders-agree-on-spending-key-step-to-averting-shutdown\/","title":{"rendered":"Congressional leaders agree on spending, key step to averting shutdown"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Congressional leaders said they reached an agreement on overall spending levels for the current fiscal year that could help avoid a partial government shutdown later this month.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agreement largely hews to spending caps for defense and domestic programs that Congress set as part of a bill to <a href=\"https:\/\/apnews.com\/article\/joe-biden-debt-ceiling-budget-signing-f78a000d83cf85ffbaa2d08637844053\">suspend the debt limit<\/a> until 2025. But it does provide some concessions to House Republicans who viewed the spending restrictions in that agreement as insufficient.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/2024\/01\/07\/bidens-state-of-the-union-address-to-congress-set-for-march-7\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP24005779859608.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Biden\u2019s State of the Union address to Congress set for March 7<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The speech is scheduled for after a pair of critical deadlines to avert a government shutdown.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">In a letter to colleagues, House Speaker Mike Johnson said Sunday the agreement would secure $16 billion in additional spending cuts from the previous agreement brokered by then-Speaker Kevin McCarthy and President Joe Biden and is about $30 billion less than what the Senate was considering.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis represents the most favorable budget agreement Republicans have achieved in over a decade,\u201d Johnson writes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Biden said the agreement \u201cmoves us one step closer to preventing a needless government shutdown and protecting important national priorities.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt reflects the funding levels that I negotiated with both parties and signed into law last spring,\u201d Biden said in a statement. \u201cIt rejects deep cuts to programs hardworking families count on, and provides a path to passing full-year funding bills that deliver for the American people and are free of any extreme policies.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agreement speeds up the roughly $20 billion in cuts already agreed to for the Internal Revenue Service and rescinds about $6 billion in COVID relief money that had been approved but not yet spent, according to Johnson\u2019s letter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s a good deal for Democrats and the country,\u201d Senate Majority Leader Chuck Schumer told colleagues in a briefing call.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Essentially, Democrats see the trade-offs they made as mild. In a description provided to reporters, they said the COVID savings would have \u201cno significant impact on any current projects or activities in motion.\u201d And they said that moving all of the $20.2 billion in IRS cuts to this year instead of over two years would still leave the agency able to maintain \u201ccritical investments\u201d that Congress provided in 2022. At the time, Congress provided the IRS with an additional $80 billion that could be spent over 10 years.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"5725\" height=\"3817\" src=\"\/wp-content\/uploads\/2026\/08\/AP23290660256149.jpg.jpg\" alt=\"\" class=\"wp-image-79110\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23290660256149.jpg.jpg 5725w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23290660256149.jpg.jpg?resize=300,200 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23290660256149.jpg.jpg?resize=768,512 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23290660256149.jpg.jpg?resize=1024,683 1024w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23290660256149.jpg.jpg?resize=1536,1024 1536w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP23290660256149.jpg.jpg?resize=2048,1365 2048w\" sizes=\"auto, (max-width: 5725px) 100vw, 5725px\" \/><figcaption class=\"wp-element-caption\">FILE &#8211; A sign outside the Internal Revenue Service building is seen, May 4, 2021, in Washington. The IRS plans to invite a select group of taxpayers across 13 states to try out the agency\u2019s pilot electronic free file tax return system, beginning this January. (AP Photo\/Patrick Semansky, File)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Overall, the agreement calls for $886 billion in defense funding. It would provide $772 billion in domestic, non-defense spending, when including $69 billion called for in a side deal to the debt ceiling bill that McCarthy had reached with the White House, Democrats said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The most conservative House Republicans opposed the earlier debt ceiling agreement and even brought House proceedings <a href=\"https:\/\/apnews.com\/article\/gas-stoves-republican-revolt-freedom-caucus-1952006c4f6fa7a727cf635208d851d1\">to a halt<\/a> for a few days to show their displeasure. Many were surely wanting additional concessions, but Democrats have been insistent on abiding by the debt ceiling agreement\u2019s spending caps, leaving Johnson in a difficult spot.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s even worse than we thought,\u201d the House Freedom Caucus said of the agreement in a tweet posted on X. \u201cThis is total failure.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lawmakers needed an agreement on overall spending levels so that appropriators could write the bills that set line-by-line funding for agencies. Money is set to lapse Jan. 19 for some agencies and Feb. 2 for others.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agreement is separate from the negotiations that are taking place to secure additional funding for Israel and Ukraine while also curbing restrictions on asylum claims at the U.S. border.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a joint statement, Schumer and House Democratic leader Hakeem Jeffries voiced their support for the agreement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt will also allow us to keep the investments for hardworking American families secured by the legislative achievements of President Biden and Congressional Democrats,\u201d Schumer and Jeffries said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But they also warned House Republicans about trying to add conservative policy riders to the bills in the coming days, saying Democrats would not support \u201cpoison pill policy changes in any of the twelve appropriations bills put before the Congress.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rep. Patrick McHenry, who helped lead the debt ceiling negotiations when McCarthy was speaker, noted that two-thirds of both parties in the House supported that agreement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis deal, which adheres to that framework, deserves equally as robust support,\u201d McHenry said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Senate Republican leader Mitch McConnell, R-Ky., tweeted that he was encouraged that leaders identified a \u201cpath toward completing\u201d the spending bills. It was a cautious recognition that some obstacles could lie ahead.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAmerica faces serious national security challenges, and Congress must act quickly to deliver the full-year resources this moment requires,\u201d McConnell said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The agreement speeds up the roughly $20 billion in cuts already agreed to for the Internal Revenue Service and rescinds about $6 billion in COVID 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