As the deadline for a potential government shutdown approaches on January 19, the GOP House Freedom Caucus has issued a statement urging Republican leaders to adhere to the $1.59 trillion spending cap set by the Fiscal Responsibility Act. The Act, established six months ago, has become a focal point in the budget negotiations. Congress, returning from their holiday recess, faces a tight nine-day window to pass a spending bill to prevent the shutdown.
House Speaker Mike Johnson (R-La.) is considering a year-long extension of current spending levels, a move that is meeting resistance from conservative GOP members. Despite Johnson’s assurance of not exceeding the $1.59 trillion cap, the Freedom Caucus has expressed concerns over America’s growing debt, advocating for deeper spending cuts.
The situation is further complicated by deadlines for passing larger departmental funding bills by February 2 and the looming possibility of automatic 7%-10% cuts to federal discretionary programs by April 30 if a year-long funding bill isn’t passed, as stipulated by the Fiscal Responsibility Act. This Act also included $69 billion in side spending deals, negotiated by former Speaker Kevin McCarthy, which have become a point of contention among GOP deficit hawks.
House Democrats, led by Minority Leader Hakeem Jeffries (D-N.Y.), have warned of resistance and a potential government shutdown if the GOP pushes for spending below the agreed cap. The House is also dealing with disagreements over emergency funding, aid for Ukraine, a border security deal, and conservative policy proposals in spending bills. In contrast, the Senate has shown more bipartisan willingness to utilize emergency funds.
Primary Sources: Axios Rating, Washington Post Rating, Politico Rating
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