December 22, 2024 – News on the presidential transition

December 22, 2024 – News on the presidential transition

The US Capitol on March 15, 2024.

The Senate approved a scaled-back, temporary government spending plan early Saturday morning, preventing a federal government shutdown.

President Joe Biden signed the bill yesterday, capping a chaotic week on Capitol Hill.

After President-elect Donald Trump torpedoed an initial bipartisan agreement reached earlier this week, lawmakers were forced to scramble for a new pact. A vote in the House of Representatives on a Trump-backed funding bill failed on Thursday evening before the chamber finally approved a revised bill on Friday evening.

The bill funds the government through March 14, setting up another spending showdown in the early days of the Trump administration. Republican lawmakers also ultimately killed a key demand from Trump.

This is what else is in the bill:

More funding for disaster relief: The spending bill includes about $100 billion to help Americans recovering from multiple natural disasters in 2023 and 2024. The funding is in line with the Biden administration’s overall request of around $100 billion in November.

Hurricane Helene hit Florida in September.

Economic aid for farmers: The bill includes $10 billion in economic aid for farmers, one of the final sticking points in negotiations earlier this week. Lawmakers from agriculture-focused states have argued that the aid is urgently needed as U.S. farmers face lower commodity prices and higher costs of supply.

The spending deal also includes a one-year extension of the farm bill — a comprehensive package that governs many agricultural and food aid programs.

Maryland Bridge Funding: Under the bill, replacing Maryland’s Francis Scott Key Bridge will be fully funded by the federal government. The law will also allow the U.S. Treasury Department to claw back funds from any settlements related to the bridge collapse to help fund reconstruction.

And here’s what didn’t make it:

Extension of the debt ceiling: The GOP package that failed Thursday would have suspended the debt ceiling until Jan. 30, 2027, addressing Trump’s key demand he made Wednesday by scrapping the original deal. Instead, Republicans are considering including a debt ceiling increase in a future package next year.

The debt ceiling is currently scheduled to be reintroduced on January 2nd. It was suspended under the bipartisan Fiscal Responsibility Act that Congress passed in June 2023. Lawmakers would likely have until mid-2025 to address the debt ceiling, as the Treasury Department could use temporary cash holdings and other measures to continue paying the country’s bills and avoid an initial default.

Although Republicans will control Capitol Hill and the White House next year, the debate over the debt ceiling would then add another complicated issue to the party’s already full plate, including extending Trump’s sweeping tax cuts last year Heard in 2017.

Read more about the bill, including some other priorities that didn’t make itHere.

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