Congress scrambles to finalize spending agreement ahead of shutdown deadline

Congress scrambles to finalize spending agreement ahead of shutdown deadline

Congress races against time to secure spending deal and avoid shutdown as lawmakers confront challenging vote math and slim majority

Upon their return to Washington this week, lawmakers are confronted with a crucial government funding deadline. Despite reaching a deal on top-line spending numbers over the weekend, there is still work to be done to prevent a shutdown. This year, Congress is facing the rare situation of having to address not one, but two government shutdown deadlines - on January 19 and February 2.

Sunday afternoon marked a significant step forward as House Speaker Mike Johnson and Senate Majority Leader Chuck Schumer reached an agreement on top-line numbers. The deal includes $1.59 trillion for fiscal year 2024, with $886 billion allocated for defense spending and $704 billion for non-defense spending. Additionally, they agreed to a $69 billion side deal to adjust non-defense domestic spending.

According to a Democratic source speaking to CNN, the side deal raises the non-defense spending figure to nearly $773 billion, bringing overall spending to approximately $1.66 trillion.

Congress scrambles to finalize spending agreement ahead of shutdown deadline

The US Capitol is seen at dusk in Washington, DC in November 2023.

Mandel Ngan/AFP/Getty Images

Congressional leaders announce spending deal as shutdown threat looms

After the announcement of the deals, President Joe Biden praised the bipartisan funding framework, stating that it brings us closer to averting a government shutdown and safeguarding crucial national priorities.

Meanwhile, the far-right House Freedom Caucus criticized the deal as a "total failure," posing a challenge for Johnson, who holds a slim majority. Members of the Freedom Caucus are insisting on significantly larger spending cuts than those outlined by congressional leaders on Sunday.

Setting an overall spending level is critical for funding the government, but Congress faces the daunting task of passing funding bills or approving a stopgap measure to keep the government open through September. Lawmakers from both parties warn that a stopgap measure would not adequately address policy challenges and operational needs.

In addition to averting a shutdown, the push to enact border security measures has complicated efforts to pass aid to Ukraine and Israel, both facing war and key US allies.

A group of bipartisan senators is working to reach a compromise on border security in order to pave the way for aid to Ukraine and Israel. However, growing opposition from House Republicans indicates that a Senate compromise on border security is unlikely to pass, as they are only willing to accept a deal similar to the hardline immigration bill they passed last year (HR 2). This stance is at odds with Senate Democrats and the White House, who strongly oppose the House Republicans' plan. The House Republicans' stance also raises concerns about the prospects for border security, as well as aid to Ukraine and Israel. Additionally, there is a risk of a government shutdown if the House Republicans' demands are not met.

"We need to tie federal government funding to the President's signing of H.R.2, or an equivalent, into law and putting an end to the flow across our border," wrote GOP Rep. Chip Roy of Texas in a recent letter to colleagues.

Sen. James Lankford of Oklahoma, a key GOP negotiator, stated in an interview that aired Sunday, "We're aiming to release the text by later this week," but cautioned, "No progress has been made in this area for decades."

"Everyone will have the opportunity to read and review it, without feeling rushed. The goal is to address this issue, but in order to pass legislation, we need a Democratic Senate, a Democratic White House, and a Republican House to move forward with this," Lankford stated on "Fox News Sunday."

With House Republicans aiming to intensify their scrutiny of the Biden administration's immigration policies, the focus on border security is escalating, with plans to impeach Homeland Security Secretary Alejandro Mayorkas.

Johnson has communicated to his constituents that he wants to play a more active role in discussions with the White House regarding border security. The Louisiana Republican addressed this in a recent call with new lawmakers, according to a source familiar with the situation. Meanwhile, White House budget chief Shalanda Young has voiced apprehension about a potential government shutdown.

Speaker Johnson faces tough vote math and narrow margin

Young, the director of the White House Office of Management and Budget, expressed pessimism when asked about the possibility of a shutdown during an appearance at "The Monitor Breakfast" on Friday morning. She referenced the threat from House Republicans to shut down the government over border policy as a reason for her lack of optimism.

Johnson is dealing with a very slim majority, making it even more difficult to secure votes. The Republicans have 220 seats compared to the Democrats' 213, leaving little room for defections on party-line issues. In addition, House Majority Leader Steve Scalise will be working remotely until February as he recuperates from a stem cell transplant.

The majority is likely to decrease even more by the end of the month as Ohio GOP Rep. Bill Johnson plans to resign from Congress on January 21 to become president of Youngstown State University. This leaves Congress with little room for error during upcoming policy battles.

"If the Democrats can secure some policy victories at the border, then that would be considered a win, especially given their slim majority in the House," stated Mick Mulvaney, former director of the Office of Management and Budget under President Donald Trump, in a podcast interview with "The Axe Files with David Axelrod."

In mid-November, Congress approved temporary funding to extend government operations until January 19, addressing key areas such as military construction, veterans affairs, transportation, housing, and the Energy Department. The remaining areas of the government will be funded until February 2.

Lawmakers aimed to have more time to pass full-year spending bills, but with rapidly approaching deadlines, there is very little time left. In addition to managing government funding and border policy, Johnson must guide his narrow majority through the GOP impeachment inquiry into President Joe Biden, which will be closely scrutinized in the coming weeks, along with other GOP oversight efforts targeting the Biden administration.

House Republicans are moving forward with plans to impeach Mayorkas due to his management of the border crisis. A committee spokesperson told CNN that the House Committee on Homeland Security has been conducting a thorough investigation into Secretary Mayorkas' involvement in the unprecedented crisis at the Southwest border for almost a year.

"The statement announced that after the bipartisan vote in the House to refer articles of impeachment against the committee secretary, hearings will be conducted and the articles will be taken up. In response, the Department of Homeland Security issued a statement criticizing House Republicans for pursuing a baseless political exercise that has already failed on a bipartisan vote and has been rejected by members of both parties."

Furthermore, Republicans on the House Oversight Committee have revealed plans to propose a resolution this week to charge Hunter Biden, the son of President Biden, with contempt of Congress for refusing to adhere to a subpoena for a private deposition. Instead, Hunter Biden spoke to the press outside the Capitol and expressed his willingness to testify in a public setting. Credit to CNN's Betsy Klein, Annie Grayer, and Casey Gannon for their contributions to this report.