The US government is at risk of another shutdown with just 18 days left to agree on a topline spending figure and a way to handle border security.
Members of Congress left Washington for their vacation without an agreement on overall spending levels, which is crucial in negotiating a broader financing deal.
She and President Joe Biden also remain locked in a standoff over financing Ukraine and protecting the southern border.
When lawmakers return after the new year, they will have just eight legislative days before the first deadline of January 19, which would shut down parts of the government, and another four days before the second deadline of February 2, which would result in a full government shutdown. .
Speaker of the House of Representatives Mike Johnson has a slim Republican majority in the House of Representatives and is under pressure from conservatives
A big question mark over the negotiations is the new Speaker of the House of Representatives, Mike Johnson, who has a narrow majority in his Chamber and is under pressure from the conservative hardliners who overthrew his predecessor.
Democrats and some Republicans have already rejected Johnson's backup plan to extend a relief bill for the rest of the budget year if the two sides cannot reach an overall financing deal.
EXPENDITURE STOP GAP
The emergency spending would be an extension of the bipartisan debt limit deal, the Fiscal Responsibility Act, that Biden and former Speaker Kevin McCarthy negotiated this summer.
But it would mean billions in cuts if extended.
Senate Republican Leader Mitch McConnell has said an emergency bill is “simply unacceptable for one year.”
Plus Republicans in the House of Representatives have repeatedly undermined the deal, while senators have passed additional emergency measures that exceed the deal's spending limits.
Senate Republican Leader Mitch McConnell has already said that an emergency bill is “simply unacceptable for one year.”
Other government funding options include passing a minibus to close the gap while lawmakers work on the 12 annual funding bills.
But here are some of the problems that may persist
POISON PILLS
Lawmakers on both sides of the aisle agree they should eliminate controversial policy provisions known as “poison pills.”
Examples of “poison pills” include adding provisions to spending bills that would severely restrict access to abortion, banning funding for Pride flags, rolling back diversity efforts, and other things that require a “no” from the Democrats would guarantee.
These can undermine spending bills due to their controversial nature.
But getting rid of these riders is also a hard sell for Johnson, who faces right-wing lawmakers pushing for such policies and moderate Republicans unwilling to defend them in their districts.
UKRAINE FINANCING
Meanwhile, the battle between Biden and Congress over Ukraine financing will be central to Congress' return.
Biden has asked Congress for $61 billion in aid to Ukraine, but Republicans are refusing to approve the aid without an agreement with Democrats to tighten security along the U.S.-Mexico border. His request also includes $14 billion for Israel to fight Hamas and $14 billion for U.S. border security.
Biden on Wednesday announced a $250 million arms package to Ukraine, which officials said would be a final amount of U.S. aid unless Congress approves new funding.
The White House has warned that unless Congress allocates additional aid to Kiev, funds will run out by the end of the year.
President Joe Biden continues to push for a deal to provide more funding to Ukraine
Senate Majority Leader Chuck Schumer is leading the negotiations for the Democrats
On Friday, Biden urged Congress to “act” and send more aid to Ukraine after Russian President Vladimir Putin launched a massive airstrike against the embattled country.
“Unless Congress takes urgent action in the new year, we will not be able to continue sending the weapons and vital air defense systems that Ukraine needs to protect its people. Congress must act and take action without further delay,” the president said in a statement.
Biden and his Democrats have made major concessions on border security to try to reach a deal, including raising standards for asylum seekers and expanding the president's power to quickly remove migrants crossing the border.
“The Democrats have moved much more toward the middle on border security,” Senate Majority Leader Chuck Schumer told the Washington Post earlier this month.
But even if the Senate reaches an agreement and approves a deal, there is no guarantee that Republicans in the House of Representatives will support it. Speaker Johnson has not yet indicated what he will do.
IMPEACHMENT OF BIDEN
Hanging over all negotiations is the impeachment inquiry by Republicans in the House of Representatives against President Biden.
Shortly before going on vacation, Republicans in the House of Representatives voted to formalize their impeachment inquiry, giving them the power to enforce their subpoenas.
Now they will have to decide whether to actually oust him or withdraw.
Republicans allege Biden benefited and helped his son Hunter Biden, using his position in government for his family's personal gain.
President Biden has repeatedly said he has not been involved in Hunter's business ventures, and House Republicans have yet to present direct evidence of that allegation.
The key lawmakers to watch will be the 17 vulnerable Republican lawmakers who represent districts Biden won in 2020.