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Disputes Over Side Agreements
In the spring, lawmakers and President Biden reached a deal on the federal government’s spending for the 2024 fiscal year, amounting to $1.59 trillion. This agreement, known as the Fiscal Responsibility Act (FRA), included $69 billion in additional side agreements that were not explicitly included in the legislation. Some House Republicans, who were not part of the initial negotiation, are now attempting to discard these side agreements in budget negotiations.
Representative Johnson expressed concerns about the confusion surrounding the side deals and reiterated the need to adhere to the top-line numbers outlined in the FRA. Other representatives, including Tom Cole and Michael Cloud, also admitted that most House members were unaware of any side deals.
Potential Consequences of Funding Delays
If a full-year spending deal is not reached, significant cuts will have to be made across various domestic programs, as stipulated in the FRA. The uncertainty surrounding the appropriations process has led to ongoing negotiations, with the Senate remaining in session to confirm judges and military appointees, as well as discuss legislation on aid to Ukraine, Israel, and border security.
Senator Martin Heinrich emphasized the need for a sense of urgency in resolving these budget negotiations, given the impact on crucial government programs.
Challenges in Setting Spending Numbers
Since the original spending deal was reached, the House GOP has faced internal disagreements over spending levels. The departure of former Speaker Kevin McCarthy further complicated matters. Some lawmakers have repeatedly pushed for spending levels below the agreed-upon cap, which has raised concerns about the reliability of future deals.
Senator Patty Murray, chair of the Appropriations Committee, expressed frustration over the prospect of not adhering to negotiated agreements, emphasizing the need for trust in future budget deals.
A temporary funding bill, known as a continuing resolution, was passed in November to prevent a government shutdown. However, funding for military and veterans programs, agriculture and food agencies, and various departments will expire on January 19. Additionally, funding for departments such as State, Defense, Commerce, Labor, and Health and Human Services will expire on February 2.
Potential Consequences of Sequestration
Failure to reach an agreement could trigger sequestration, resulting in automatic cuts in domestic federal programs. Senator Murray warned about the impact of sequestration, including potential staffing cuts, furloughs for certain agencies, the halt of government-backed medical research, and cuts to federal housing assistance.
Efforts are underway to prevent devastating consequences, with appeals for Congress to address funding shortfalls in crucial programs like the WIC nutrition program. Neera Tanden, the president’s top domestic policy adviser, highlighted the need for Congress to take action to prevent waitlists or other measures that could harm low-income families.
Representative Mario Diaz-Balart emphasized the importance of flexibility in negotiations, while acknowledging potential disagreements between the House and the Senate.
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