WASHINGTON – President Joe Biden and Congressional leaders announced Tuesday they had reached a deal on government funding, marking the end of a month-long saga that featured numerous shutdown threats.
With only a few days left to consider the funding bill, the brief government shutdown could continue into the weekend. But unless extended until next week, there will be little impact on services or federal employees.
“We have reached an agreement with Congressional leaders on how to proceed with the remaining funding bill,” Biden said in a statement Tuesday. “The House and Senate are currently working on a final version that can be brought to the floor quickly, and I intend to sign it immediately.”
House Speaker Mike Johnson (R-Louisiana) said in a separate statement that negotiators had reached an agreement on spending for the Department of Homeland Security, which was a flashpoint over the weekend. This “enables completion of the (fiscal year 2024) appropriations process.”
If lawmakers fail to pass the bill by the deadline, the funding shortfall could extend even further and lead to a government shutdown, with real consequences for many Americans.
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The shutdown means all officials and federal agencies not deemed “essential” must cease operations. Thousands of federal workers have been furloughed without pay, but are typically paid for their time when they return to work. Government subcontractors may also lose their jobs and may not receive back pay.
Senate Majority Leader Chuck Schumer of New York said on the Senate floor Tuesday that he is “hopeful” that lawmakers can complete the process “without causing a decline in government services.”
Lawmakers had originally planned to unveil the bill on Sunday, but disagreements over border security funding hampered a deal. Lawmakers are now scrambling to come up with a bill that can be announced in time to avoid the 12:01 a.m. Saturday deadline for a partial shutdown.
Timing is difficult. He needs 72 hours of consideration before the House votes on the bill. If the bill is released on Tuesday, the House will likely vote on it on Friday. The Senate could consider it the same day, but only if all 100 senators agree to expedite the process, which could leave it vulnerable to last-minute complications.
But the deal signals an end to fears of a government shutdown that have plagued Congress for months. According to the Congressional Research Service, there have been 20 federal “shortfalls” since 1977, about half of which were for three days or less. These short gaps usually do not lead to closures, as the agency does not have enough time to scale back the project before funding resumes.
Each year, Congress must pass 12 separate spending bills to provide long-term funding for the government. Lawmakers passed six of them earlier this month. The remaining six are approximately 70% federally funded.
Unpaid invoices are related to:
- defense.
- Financial Services and General Government.
- Homeland Security.
- Labor, Health and Human Services, Education.
- Legislature.
- National and foreign activities.
Homeland security legislation has become a sticking point in negotiations as Republicans push for border security provisions. But the White House and Congressional Republicans reached an agreement Monday night that would allow them to move forward.
All spending bills were originally due by September 30 of last year. Under political pressure from some of its most conservative members, Congress agreed to extend the deadline four times to buy time to reach a deal.
The funding process took a very long time, so the next process is about to begin. Biden announced new budget requests last week.