Should prevent budget freeze
Fundamental agreement reached in US budget dispute
January 8, 2024, 2:31 a.m
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There is a risk of another default in the USA in two weeks. Republicans and Democrats are now agreeing on a budget package that is intended to prevent the shutdown. However, aid for Ukraine or Israel is not yet in the clear.
The leading representatives of Democrats and Republicans in the US Congress have reached a fundamental agreement in the budget dispute. The compromise announced on Sunday after weeks of negotiations is intended to prevent a budget freeze, the so-called shutdown. The agreement sets a cap on spending of around $1.6 trillion, according to House Republican leader Mike Johnson and Senate Democratic leader Chuck Schumer. Democrats and Republicans in Congress now have to negotiate further details and pass a law by January 19th. Otherwise, funding for part of government operations would cease.
The agreement calls for an increase in defense spending to approximately $886.3 billion. According to the Democrats, the non-military sector accounts for $772.7 billion. This makes it possible to protect “important domestic priorities” such as support for veterans or health benefits “from the draconian cuts sought by right-wing extremists,” explained Schumer and his party colleague Hakeem Jeffries.
Biden: First step against unnecessary standstill
US President Joe Biden said the agreement “brings us one step closer to preventing an unnecessary government shutdown and protecting important national priorities.” Biden also emphasized that the package “rejects deep cuts to programs that hard-working families count on.” But the compromise is likely to anger the far-right wing of the Republican faction in the House of Representatives, whose representatives are pushing for austerity measures.
The financial package is independent of a complementary spending request from the White House for additional aid to Ukraine and Israel. A bipartisan group of senators has negotiated an agreement to combine changes in border and immigration policy with further aid for Ukraine, reported “The Hill”.