The US Congress has reached an agreement on a short-term spending deal that would help avoid a government shutdown, according to a CNN report, citing sources. The two-tranche short-term funding bill will keep the government afloat which otherwise would have capsized after hitting the midnight deadline of January 19.
According to the new resolution, the bill would fund the government through March 1 and March 8. Missing the first deadline would have meant payment delays to federal employees and severe disruption to many government services deemed non-essential.
The second government funding deadline, set to expire on February 2, focuses on eight appropriations areas such as defence, commerce, homeland security and financial service among others that may have lost funding if the bipartisan agreement was not reached.
While an agreement has been reached on the short-term bill, known as a continuing resolution or “CR”, it will still have to pass both House and Senate before Friday (Jan 19) at 11:59 pm.
The reported signing of the deal by House and Senate leaders comes a few days after they reached an agreement to set the overall spending level for fiscal year 2024 at $1.41 trillion.
Both Republican and Democrat leaders at Capitol Hill agreed to the budget figure which includes $886 billion for defence and more than $704 billion for non-defence spending.
The signing of the deal was announced jointly by Chuck Schumer, the Democratic Senate majority leader, and Mike Johnson, the Republican Speaker of the House.
US President Joe Biden welcomed the deal, stating that the funding framework “moves us one step closer to preventing a needless government shutdown” whilst adding that it protects important national priorities.
Section of Republicans unhappy
Despite reaching an agreement on the overall amount of spending, a section of Republicans remains unhappy with the deal. The House Freedom Caucus, a conservative Republican group called the agreement a “total failure”.
“Sad to say but the spending epidemic in Washington continues with both parties being culpable,” said Andy Biggs, the former chief of the group.
In October last year, Congress secured a short-term deal to avoid a federal shutdown temporarily which was signed into a law by President Joe Biden, minutes before the deadline.
(With inputs from agencies)
