Congress unveils $1.2 trillion plan to avert federal shutdown and bring budget fight to a close

WASHINGTON — Lawmakers introduced a $1.2 trillion spending package Thursday that sets the stage for avoiding a partial government shutdown for several key federal agencies this weekend and allows Congress, nearly six months into the budget year, to continue its work to overhaul the government to be financed through September to be completed.

Democrats were able to roll back dozens of policy mandates and some of the sharper cuts that House Republicans tried to impose on non-defense programs, although House Speaker Mike Johnson, R-La. , highlighted some victories, including an almost 24% increase in the budget. detention beds for migrants awaiting immigration proceedings or removal from the country.

This year’s spending bills were divided into two packages. The first was approved by Congress two weeks ago, just hours before the shutdown deadline for the agencies funded through the bills.

Now Congress is focusing on the second, larger package, which includes about $886 billion for the Defense Department, an increase of more than 3% from last year’s level. The 1,012-page bill also funds the departments of Homeland Security, Health and Human Services, Labor and others.

“Congress must now rush to pass this package before government funding runs out this Friday,” said Senate Majority Leader Chuck Schumer, D-N.Y.

Non-defense spending will remain relatively flat compared to the previous year, although some agencies, such as the Environmental Protection Agency, will take a hit, and many agencies will not see their budgets keep up with inflation.

When the two packages are combined, discretionary spending for the budget year will amount to about $1.66 trillion. That doesn’t include programs like Social Security and Medicare and financing the country’s rising debt burden.

The expectation is that the House will first adopt the measure on Friday. House Majority Leader Steve Scalise urged Republicans to vote for the measure, noting that more than 70% of spending goes to defense.

“At a time when the world is on fire, more than ever we need to ensure we properly fund our nation’s defense and support our troops,” Scalise said.

It would then go to the Senate, where senators would have to agree on its speedy consideration to avoid a partial shutdown. Typically, such agreements include votes on proposed amendments to the bill.

Johnson described the bill as a serious commitment to strengthening national defense while expanding support for those serving in the military. The bill provides for a 5.2% pay increase for service workers.

In promoting the bill, Republicans cited several ways it would help Israel. In particular, they highlighted a ban on funding through March 2025 for the UN Relief and Works Agency, the main provider of food, water and shelter to civilians in Gaza.

Republicans are calling for a halt to the agency’s funding after Israel alleged that a dozen agency employees were involved in the Oct. 7 attack Hamas carried out in Israel.

But the ban has some lawmakers concerned because many aid groups say there is no way to replace their ability to deliver the humanitarian aid that the United States and others are trying to send to Gaza, where a quarter of the 2.3 million residents go hungry.

However, Democrats emphasized that humanitarian aid worldwide will increase by about $336.4 million.

Sen. Patty Murray, chairman of the Senate Appropriations Committee, also highlighted a $1 billion increase for Head Start programs and new child care centers for military families. Democrats also called for a $120 million increase in funding for cancer research and a $100 million increase for Alzheimer’s disease research.

“We defeated bizarre cuts that would have been a blow to American families and our economy,” said Murray, D-Wash.

She also said Democrats have successfully fought numerous policies, known as “riders,” that Republicans tried to add in the House of Representatives.

“From Day 1 of this process, I have said there would be no far-right riders restricting women’s reproductive freedoms – and there are none, she said.

One of the policy provisions that Republicans in the House of Representatives did secure was a requirement that only allows the American flag and “other official flags” to fly over U.S. diplomatic facilities. Under the Biden administration, U.S. embassies have been invited to raise the pride flag or rainbow colors in support of the LGBTQ community.

There is also a provision that prevents the Consumer Product Safety Commission from banning gas stoves. But the White House has said President Joe Biden would not support a ban, and the commission, an independent agency, said such a ban was not in the works.

The spending in the bill largely mirrors an agreement that former Speaker Kevin McCarthy struck with the White House in May 2023, which capped spending for two years and suspended the debt ceiling until January 2025 so the federal government could pay its bills keep paying.

Shalanda Young, director of the White House Office of Management and Budget, told lawmakers Thursday that last year’s deal, which became the Fiscal Responsibility Act, will save taxpayers about $1 trillion over the next decade.

McCarthy, R-Calif., was removed from the speakership a few months after securing the debt ceiling deal. Eight Republicans ultimately joined Democrats to oust McCarthy as chairman. And some of those unhappy with that deal also expressed doubts about the latest package.

“I hope there will be some modest victories. Unfortunately, I don’t expect us to stand in the way of significant policy victories, based on the past and based on our unwillingness to use any form of power to force policy victories, which means we are willing to walk away and no to say.” said Rep. Bob Good, R-Va.

The work on the spending bills was more bipartisan in the Senate. Murray issued a joint statement with Sen. Susan Collins, R-Maine, after the bill’s release, urging colleagues to vote for it.

“There is no need for a shutdown or chaos – and members of Congress should waste no time in passing these six bills, which will greatly benefit every state in America and reflect the important priorities of many Senators,” said Murray and Collins.

Johnson said that after the spending package passes, the House will next turn its attention to a bill aimed at helping Ukraine and Israel, although lawmakers will not be in Washington for the next two weeks. The Senate has already approved a $95.3 billion aid package for Ukraine, Israel and Taiwan, but Johnson has refused to put it to a vote.

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