Congressional leaders have introduced a two-step plan aimed at preventing a partial government shutdown this week. The proposed legislation, revealed on Sunday evening, suggests funding some federal government areas until March 1, while extending funding for remaining agencies until March 8. This marks the third funding stopgap, known as a continuing resolution (CR), since the expiration of fiscal 2023 funding in September. Congress faces a deadline of January 19 to pass the CR and avert a partial government shutdown.
The two-step approach mirrors the structure previously approved by Congress, with deadlines on January 19 and February 2. This strategy is designed to avoid a comprehensive omnibus spending bill, aligning with House Republicans’ push to separate regular funding bills. Under this plan, four of the 12 annual appropriations bills would receive temporary extensions until the March 1 cutoff date. These include funding for agencies such as the Departments of Agriculture, the Food and Drug Administration, Energy, Transportation, Housing and Urban Development. The remaining eight bills fall under the March 8 deadline, covering agencies like the Departments of Defense, Homeland Security, Labor, Health and Human Services, and Education.
The agreement comes one week after both sides reached a consensus on funding the federal government through September. However, additional time is required for appropriators to finalize the 12 annual spending bills for fiscal 2024.
The decision to opt for a short-term CR represents a setback for hardline House Republicans advocating for a long-term stopgap. The latter would entail the threat of automatic cuts after April, as outlined in the Financial Responsibility Act debt limit bill from the previous year. Hard-liners argue that these potential cuts serve as a fallback option for reducing spending and a leverage point to extract concessions from Democrats on issues such as border and migration policy.