01/07/2024 22:05 (current 01/07/2024 22:05)
Schumer and Johnson demonstrate capacity for compromise ©APA/GETTY IMAGES NORTH AMERICA
Nearly two weeks before another deadline expires, divided party leaders in the US Congress have reached a key agreement in the budget dispute. The Republican Speaker of the House of Representatives, Mike Johnson, and the Democratic Majority Leader in the US Senate, Chuck Schumer, reached an agreement on Sunday on a maximum limit of 1,590 billion dollars (1,455.91 billion euros) for the current budget year. This now allows committee consultations to begin.
In a letter to MPs, Johnson emphasized that significant spending cuts had been achieved compared to previous planning. In particular, emergency spending was suspended, “which could save taxpayers $200 billion over the next ten years.” “The result means real savings for American taxpayers and real cuts to federal bureaucracy,” Johnson said.
Specifically, two maximums were agreed upon: $886 billion for defense spending and $704 billion for all other federal spending. The exact distribution must now be determined by the responsible committees in the Chamber of Deputies and the Senate. Additional political demands or “poison pills” with which opposition Republicans want to force a change in government policy – for example in the area of migration – have been excluded. Therefore, a real agreement on the budget conflict remains questionable. Schumer and his Democratic colleague in the House of Representatives, Hakeem Jeffries, emphasized that the ruling party would not agree to any “poison pills.” This became clear to Johnson and Senate Minority Leader Mitch McConnell during the negotiations.
By mid-November, the two chambers of parliament had already reached a preliminary agreement, but this only delayed the solution for a good two months. If there is no decision by January 19th, the US will face a government shutdown because no more government spending will be possible.