Congressional Leaders Agree to Funding Deal to Avert Partial Government Shutdown

Congressional leaders have come to an agreement on a funding deal aimed at preventing a partial government shutdown. The deal extends the expiration dates for federal finances until later in March, giving lawmakers more time to finalize the details of a $1.7 trillion spending package.

Impending Shutdown

Roughly 20 percent of the federal government, including the departments of Transportation, Veterans Affairs, Housing and Urban Development, and Agriculture, was initially set to shutter at 12:01 a.m. on Saturday unless Congress approved new spending legislation. However, under the new agreement, funding for these departments and the Commerce, Justice, and Interior departments would now expire on March 8 instead, a week later than planned. Meanwhile, funding for the rest of the government, including the Defense and State departments, would be extended until March 22.

Details of the Plan

Two sources familiar with the budget talks, speaking on the condition of anonymity due to the sensitivity of the negotiations, confirmed the details of the plan. The idea behind the extension is to provide lawmakers with additional time to finalize full-year spending legislation for the agencies in question.

Mad Dash in Congress

With the agreement in place, there is now a push in Congress to approve the extension, known as a continuing resolution (CR), before the looming deadline. Even after the deal was reached, doubts remain about whether Congress will be able to act in time. According to reports, House Speaker Mike Johnson floated the extension to Democrats, who reacted favorably, albeit with a note of caution. Senator Jon Tester, the top Democratic negotiator on the defense appropriations bill, expressed willingness to proceed with the extension but emphasized the need to address the underlying issues without resorting to temporary solutions.

Recent Legislative Timeline

Congress has been grappling with the issue of federal funding, having passed three short-term spending bills between September and January. House Speaker Mike Johnson previously pushed through a CR that staggered the expiration dates for federal funding. This was followed by another continuing resolution in January as lawmakers continued to face challenges in passing spending measures for the remainder of the 2024 fiscal year, which began on October 1, 2023.