Congress' Last-Minute $1.1 Trillion Deal: What You Need to Know to Avoid a Shutdown!

Congress' Last-Minute $1.1 Trillion Deal: What You Need to Know to Avoid a Shutdown!

WASHINGTON (Reuters) - U.S. congressional leaders have unveiled a $1.1 trillion bipartisan spending plan for defense, homeland security, and other crucial programs early on Thursday, following several days of delay. 

This announcement puts lawmakers on a tight schedule, with less than two days to prevent a partial government shutdown.

The Republican-led House of Representatives is scheduled to vote on the comprehensive package on Friday, giving the Democratic-majority Senate only hours to pass the package, covering about two-thirds of the $1.66 trillion in discretionary government spending for the fiscal year starting on Oct. 1.

In a joint statement, the top Senate negotiators, Patty Murray (Democrat) and Susan Collins (Republican), described these final six bills as a bipartisan and bicameral compromise. 

They emphasized that the bills aim to invest in the American people, bolster the economy, enhance community safety, and strengthen national security and global leadership.

However, the Congressional Budget Office has issued a warning that U.S. deficits and debt are projected to increase significantly over the next 30 years. They forecast that the nation's $34.5 trillion national debt, currently about 99% of GDP, could rise to 166% of GDP by 2054.

Senate Majority Leader Chuck Schumer expressed optimism that Congress can avoid a shutdown if Democrats and Republicans in his chamber collaborate. 

Nonetheless, the tight timeline raises the risk of at least a brief partial shutdown after the Friday midnight deadline, unless an agreement can be reached with Senate Republicans to expedite the bill.

House Speaker Mike Johnson highlighted what he called a series of Republican victories in the legislation. 

These include increased spending for U.S. defense and border security, as well as a cessation of U.S. funding for the main United Nations relief agency providing humanitarian aid to Palestinians in Gaza.

Johnson stated, "This FY24 appropriations legislation is a serious commitment to strengthening our national defense by refocusing the Pentagon on its core mission."

Democrats, however, noted that they thwarted some Republican cuts and policy measures. 

They also emphasized funds aimed at reducing childcare costs, supporting small businesses, and combating the flow of the opioid fentanyl.

"We defeated severe cuts that would have been devastating for American families and our economy," said Murray, the Democratic chair of the Senate Appropriations Committee.

The text unveiled on Thursday provides the details of an agreement in principle between Johnson and Schumer, which Democratic President Joe Biden has pledged to sign into law. 

With a slim 219-213 House Republican majority, Johnson will need Democratic votes to pass the spending bill to the Senate. Many House Republicans are expected to oppose the legislation, including hardliners advocating for steeper spending cuts.

In addition to the departments of Homeland Security and Defense, the bill would fund agencies such as the State Department and the Internal Revenue Service as it prepares for its April 15 taxpayer filing deadline.

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