Congress Reaches Last-Minute Deal to Avoid Government Shutdown

With only two hours to spare until a government shutdown on Saturday at midnight, Congress passed with overwhelming bipartisan support and President Biden signed into law a Continuing Resolution (CR) to extend government operations and funding at mostly fiscal year (FY) 2023 funding levels through November 17.  The deal came as a surprise to many, as then-Speaker of the House Kevin McCarthy (R-CA) was not expected to work with Democrats to pass a bipartisan CR. The fallout of his decision has already been felt, as conservative members of the House, joined by all House Democrats, voted to remove him from the Speakership. While the CR provides a temporary reprieve, there is still no clarity on a path forward to resolve major political and spending issues. House Republicans have not announced any intention to negotiate with Senate Democrats on the Biden Administration on a path forward, instead planning on passing partisan versions of the remaining eight FY 2024 appropriations bills. Furthermore, the floor time needed to elect a new Speaker will be a major distraction and could bring most House legislative business to a standstill. While the CR gives the House and Senate time to finalize their own respective bills, the possibility of a shutdown following the November 17 deadline remains a possibility.

The CR mostly mirrors the original bipartisan Senate package, including extending government funding through November 17 at mostly FY 2023 funding levels; $16 billion for disaster aid; and extensions for key public health, pharmaceutical drug, and welfare programs. However, the CR does not include aid for Ukraine sought by the Biden Administration or border security provisions pushed by House Republicans.

Publication Type
Washington InfO

Topic
Government Relations