Congress reaches fiscal 2024 funding deal, new stopgaps in hopes of averting shutdown

Congressional leaders on Wednesday agreed to a funding deal that would avoid the immediate threat of a shutdown while buying more time to pass full-year spending bills in two separate packages. 

Several agencies, which collectively employ about 600,000 workers, are facing a shutdown deadline of late Friday evening, though lawmakers are now on track to avoid a lapse. Doing so will require accommodation from all senators to move on an expedited timeline. 

Under the deal, the departments of Agriculture, Energy, Housing and Urban Development, Transportation and Veterans Affairs, as well as a handful of related agencies, would have their funding extended in a stopgap bill through March 8. The departments of Interior, Commerce and Justice, as well as the Environmental Protection Agency and a few other agencies, would keep their current March 8 deadlines.

Negotiations over full-year fiscal 2024 funding for those agencies, which make up six of the 12 annual must-pass spending bills, are complete, lawmakers said, allowing appropriators to finalize the text for those measures and hold a vote on them in one “minibus” bill next week. 

The remaining agencies would see their deadlines move from March 8 to March 22. Negotiations over those bills are ongoing, but leadership hopes to complete that process and vote on a second minibus by the new date. 

In a joint statement, Senate Majority Leader Chuck Schumer, D-N.Y., Senate Minority Leader Mitch McConnell, R-Ky., House Speaker Mike Johnson, R-La., and House Minority Leader Hakeem Jeffries, D-N.Y., as well as the top appropriations officials in both chambers and parties, said they would vote on the first minibus before March 8 and the second would be finalized and voted on before March 22. 

“To give the House and Senate Appropriations Committee adequate time to execute on this deal in principle, including drafting, preparing report language, scoring and other technical matters, and to allow members 72 hours to review, a short-term continuing resolution to fund agencies through March 8 and the 22 will be necessary, and voted on by the House and Senate this week,” they said. 

Congressional leaders previously agreed to a top-line spending level of $1.66 trillion for fiscal 2024, with defense spending jumping 3% to $886 billion and non-defense spending staying essentially flat relative to fiscal 2023 at nearly $773 billion. While the allocations for each of the 12 spending bills lawmakers must pass each year are set, negotiators have been working tirelessly to determine which policy riders to include. 

Lawmakers had originally hoped to finalize text last weekend to tee up a vote on full-year funding bills this week, but missed that goal after talks stalled. The process ramped back up on Tuesday after leaders from both parties met with President Biden and agreed on a path to avert a shutdown. 

Congress’ most pressing need will now be to pass the new stopgap bill before funding expires first thing Saturday morning. More than 75,000 employees would face furloughs if lawmakers fail to act by that deadline.