Top leaders in Congress have reached an agreement on the spending limits for the ongoing fiscal year, potentially averting a partial government shutdown.
According to an AP News report released on Sunday, the agreement mostly follows the established spending limits for defense and domestic programs as outlined in a bill aimed at suspending the debt limit until 2025. Additionally, it incorporates compromises to address concerns raised by House Republicans who felt that the spending constraints were insufficient.
In a communication to colleagues, House Speaker Mike Johnson indicated the agreement would result in $16 billion additional spending cuts from the previous pact negotiated by then-Speaker Kevin McCarthy and President Joe Biden. It is also approximately $30 billion less than what the Senate was considering.
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"This represents the most favorable budget agreement Republicans have achieved in over a decade," Johnson wrote.
The President lauded the agreement for bringing the nation "one step closer to preventing a needless government shutdown and protecting important national priorities."
The agreement accelerates around $20 billion in previously arranged reductions for the Internal Revenue Service and pulls back about $6 billion from COVID relief funds, which had been approved but remained unspent, according to Johnson's letter.
Senate Majority Leader Chuck Schumer and House Democratic leader Hakeem Jeffries also expressed their support for the agreement in a joint statement.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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