Mar 4 2024: On Sunday, U.S. congressional negotiators unveiled a comprehensive bill aimed at financing essential government operations throughout the remainder of the fiscal year that commenced in October. This measure comes amid the looming threat of a partial government shutdown should lawmakers fail to act before Friday’s deadline.
According to a spokesperson for Democratic Senate Majority Leader Chuck Schumer, the proposed legislation outlines a discretionary spending target of $1.66 trillion for fiscal year 2024. It elaborates on an agreement reached by Schumer and Republican House Speaker Mike Johnson earlier in January.
Last week, legislators passed the fourth interim funding measure since October 1 to avert a shutdown. They set two imminent deadlines for action, with funding for departments such as the Department of Transportation and the Food and Drug Administration set to expire on March 8, and the possibility of a partial shutdown affecting most other federal agencies by March 22.
The extensive 1,050-page bill delineates funding for six of the twelve segments of the government that Congress is tasked with financing, with the remaining six segments expected to be addressed later in the month.
Schumer emphasized that the bill “upholds the bold investments Democrats secured for American families, workers, and national defense.” Meanwhile, Johnson underscored Republican achievements in securing conservative policy wins, rejecting left-leaning proposals, and implementing significant cuts to agencies and programs aligned with President Biden’s agenda.
While congressional leaders have reached consensus on the bill, challenges remain, particularly concerning opposition from hardline Republicans in the House, who advocate for substantial spending reductions and typically oppose spending bills.
House Republicans perceive the bill as a victory, despite their fragmented caucus and limited negotiating leverage. The proposed legislation includes notable reductions, such as a 10% cut to Environmental Protection Agency funding, a 7% reduction for the Bureau of Alcohol, Tobacco and Firearms, and a 6% decrease for the FBI.
Schumer highlighted provisions in the bill that fully fund health programs for low-income families, prioritize infrastructure investments, and enhance services for veterans.
The ongoing fiscal brinkmanship surrounding the nation’s $34 trillion debt has stirred unease among credit agencies. Moody’s downgraded its financial outlook on the United States from “stable” to “negative” in November, citing significant fiscal deficits and escalating political polarization, while Fitch reaffirmed a “stable” outlook on Friday.
The House is scheduled to vote on the bill before it proceeds to the Senate ahead of Friday’s deadline, as stated by Schumer. The House reconvenes in Washington on Tuesday.
Additionally, the draft legislation provides for Congressional approval of new 20-year funding packages totaling $7.1 billion for three strategic Pacific Islands nations allied with the United States. These agreements, known as the Compacts of Free Association, entail economic assistance to the Federated States of Micronesia (FSM), the Marshall Islands (RMI), and Palau, while granting the U.S. exclusive military access to crucial Pacific territories contested by China, its strategic rival.
Leaders of the COFA states have expressed growing concerns over the U.S. congressional budget impasse, warning that China actively seeks to sway their alliances, including over Taiwan.