Business Day

US could avert shutdown with $1.1-trillion plan

• House of Representa­tives to vote on sprawling package on Friday

- David Morgan and Makini Brice Washington /Reuters

After days of delay, US congressio­nal leaders unveiled a $1.1-trillion bipartisan spending measure for defence, homeland security and other programmes early on Thursday, giving legislator­s less than two days to avert a partial government shutdown.

The Republican-controlled House of Representa­tives will vote on the sprawling package on Friday, leaving the Democratic-majority Senate only hours to pass the package of six bills that covers about twothirds of the $1.66-trillion in discretion­ary government spending for the fiscal year that began on October 1.

“These final six bills represent a bipartisan and bicameral compromise,” the two top Senate negotiator­s — Patty Murray, a Democrat, and Susan Collins, a Republican — said in a statement.

“They will invest in the American people, build a stronger economy, help keep our communitie­s safe, and strengthen our national security and global leadership.”

The congressio­nal budget office warned that US deficits and debt will grow considerab­ly over the next 30 years, forecastin­g that the nation’s $34.5-trillion national debt, which represents about 99% of GDP, could grow and rise to 166% of GDP by 2054.

Democratic Senate majority leader Chuck Schumer said he was “hopeful” Congress could avert a shutdown if Democrats and Republican­s in his chamber worked together.

The compressed schedule raised the risk of at least a brief partial shutdown after a Friday midnight deadline, unless Schumer can reach agreement with Senate Republican­s to expedite the bill.

House speaker Mike Johnson touted what he called a series of wins for Republican­s, from higher spending for US defence and border security to a cut-off of US funding for the main UN relief agency that provides humanitari­an assistance to Palestinia­ns in Gaza.

“This FY24 appropriat­ions legislatio­n is a serious commitment to strengthen­ing our national defence by moving the Pentagon toward a focus on its core mission,” Johnson said in a statement released along with the text of the legislatio­n.

BLOCKED

Democrats said they blocked some Republican cuts and policy measures and touted funds aimed at lowering childcare costs, supporting small businesses and fighting the flow of the opioid fentanyl.

“We defeated outlandish cuts that would have been a gut punch for American families and our economy — and we fought off scores of extreme policies that would have restricted Americans’ fundamenta­l freedoms, hurt consumers while giving giant corporatio­ns an unfair advantage, and turned back the clock on historic climate action,” said Murray, the Democratic chair of the Senate appropriat­ions committee.

Two weeks ago, the US Congress narrowly avoided a shutdown that would have affected agricultur­al, transporta­tion and environmen­tal programmes.

The text unveiled on Thursday fills in the details of an agreement in principle between Johnson and Schumer, which Democratic President Joe Biden has pledged to sign into law.

With a slim 219-213 House Republican majority, Johnson will have to rely on Democratic votes to get the spending bill to the Senate.

Many House Republican­s are still expected to oppose the legislatio­n, including hardliners who want steeper spending cuts.

Besides the department­s of homeland security and defence, the bill would fund agencies including the state department and the internal revenue service as it girds for its April 15 taxpayer filing deadline.

DEMOCRATS SAY THEY DEFEATED CUTS BY REPUBLICAN­S THAT WOULD HAVE BEEN A GUT PUNCH FOR US FAMILIES AND THE ECONOMY

 ?? /Reuters ?? Package in focus: Senate minority leader Mitch McConnell speaks as US senator John Thune looks over his shoulder during a press conference after the weekly Senate Republican caucus luncheons on Capitol Hill in Washington on Wednesday.
/Reuters Package in focus: Senate minority leader Mitch McConnell speaks as US senator John Thune looks over his shoulder during a press conference after the weekly Senate Republican caucus luncheons on Capitol Hill in Washington on Wednesday.

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