US Congress Reaches Short-Term Spending Deal to Avert Government Shutdown

Democratic and Republican leaders in the US Congress have introduced a short-term spending bill that aims to avert a partial government shutdown and keep federal agencies operational until March. The agreement is intended to prevent short-term chaos and provide additional time to develop a comprehensive spending legislation that funds government activities. If the bill is not signed into law, agencies overseeing transportation, housing, and other services will run out of funding by midnight on Friday, leading to scaled-back operations. The Senate Democratic Leader Chuck Schumer, Republican House Speaker Mike Johnson, Senate Republican leader Mitch McConnell, and House Democratic leader Hakeem Jeffries all agreed on the measure. However, the legislation may face challenges in the House as conservative Republicans who advocate for lower spending levels could disrupt its passage. The bill aims to extend the funding deadline for various federal programs, including transportation, housing, agriculture, energy, veterans, and military construction, to March 1 or March 8. This extension would provide lawmakers with more time to negotiate and pass the detailed spending legislation required for the government’s fiscal year, which began on October 1, 2023. The legislation covers approximately one-third of the US government’s spending, totaling $6.1 trillion in the last fiscal year. The remaining two-thirds includes retirement and health benefits, which do not require annual approval from Congress, as well as interest payments. The potential for a partial government shutdown, similar to the one last autumn, prompted Republican Speaker Kevin McCarthy’s ousting after he reached a bipartisan stopgap spending deal with Schumer. The new spending bill seeks to prevent a recurrence of such events.