Congress unveils $1.2 trillion plan to avert federal shutdown and bring budget fight to a close

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WASHINGTON (AP) — Lawmakers introduced a $1.2 trillion spending package Thursday that sets the stage for avoiding a partial government shutdown for several key federal agencies this weekend and allows Congress, nearly six months into the budget year, to complete its work in funding the government through September.

Democrats were largely able to swat back hundreds of policy mandates and some of the steeper budget cuts that House Republicans were seeking to impose on nondefense programs, though House Speaker Mike Johnson, R-La., highlighted some policy wins, including a nearly 24% increase in detention beds for migrants awaiting their immigration proceedings or removal from the country.

This year’s spending bills were divided into two packages. The first one cleared Congress two weeks ago, just hours before a shutdown deadline for the agencies funded through the bills.

Now Congress is focused on the second, larger package, which includes about $886 billion for the Defense Department, about a 3% increase from last year’s levels. The 1,012-page bill also funds the departments of Homeland Security, Health and Human Services, Labor, and others.

Nondefense spending will be relatively flat compared with the prior year, though some, such as the Environmental Protection Agency, are taking a hit, and many agencies will not see their budgets keep up with inflation.

When combining the two packages, discretionary spending for the budget year will come to about $1.66 trillion. That does not include programs such as Social Security and Medicare, and financing the country's rising debt.

The House is expected to take the measure up first, on Friday. Then it would move to the Senate where senators would have to agree on taking it up expeditiously to avoid a partial shutdown. Usually, such agreements include votes on proposed amendments to the bill.

Johnson promoted the bill as a serious commitment to strengthening national defense by moving the Pentagon toward a focus on its core mission while expanding support for those serving in the military. The bill provides for a 5.2% pay increase for service members.

One of the changes Johnson cited for Republicans was prohibiting funding through March 2025 for the U.N. Relief and Works Agency, which operates in Gaza. Republicans are insisting on cutting off funding to the agency after Israel alleged that a dozen employees of the agency were involved in the attack that Hamas conducted in Israel on Oct. 7.

An Israeli document spelled out allegations against a dozen UNRWA employees the country says took part in Hamas’ assault — claiming seven stormed into Israeli territory, including one who participated in a kidnapping and another who helped to steal a soldier’s body. The U.N. condemned “the abhorrent alleged acts” and fired nine of the accused workers, who include teachers and a social worker. Two are reportedly dead, and the last is still being identified.

But the prohibition does concern some lawmakers because many relief agencies say there is no way to replace its ability to deliver the humanitarian assistance that the United States and others are trying to send to Gaza.

Among the few policy provisions that House Republicans did secure was a requirement that only allows for the American flag and “other official flags” to fly over U.S. diplomatic facilities. Under the Biden administration, U.S. embassies have been invited to fly the pride flag or light up with rainbow colors in support of the LGBTQ community.

The spending in the bill largely tracks with an agreement that former Speaker Kevin McCarthy worked out with the White House in May 2023, which restricted spending for two years and suspended the debt ceiling into January 2025 so the federal government could continue paying its bills.

McCarthy, R-Calif., was ousted from the speaker’s role a few months after securing the debt ceiling deal. Eight Republicans ended up joining with Democrats in removing McCarthy as speaker. And some of those unhappy with that debt ceiling deal also expressed misgivings about the latest package.

“I hope there will be some modest wins. Unfortunately, I don’t expect that we will get much in the way of significant policy wins based on past history and based on our unwillingness to use any kind of leverage to force policy wins, meaning a willingness to walk away and say no,” said Rep. Bob Good, R-Va.