Congress unveils stopgap US federal spending bill

18 December 2024, 01:14

Speaker of the House Mike Johnson
Congress Budget. Picture: PA

The package includes emergency aid to help states recover from natural disasters.

Congressional leaders have unveiled a stopgap spending bill that will keep the US federal government funded until March 14.

It will also provide more than 100 billion dollars (£78 billion) in emergency aid to help states and local communities recover from Hurricanes Helene and Milton and other natural disasters.

The measure would prevent a partial government shutdown set to begin after midnight on Friday. It would kick final decisions on this budget year’s spending levels to a new Republican-led Congress and President-elect Donald Trump.

The continuing resolution generally continues current spending levels for agencies.

Passage of the measure is one of the final actions members will consider this week before adjourning for the holidays and making way for the next Congress. It is the second short-term funding measure as they struggled to pass the dozen annual appropriations bills before the new fiscal year began October 1, as they typically do.

The bill will provide 100.4 billion dollars (£79 billion) in disaster relief, with an additional 10 billion dollars (£7.8 billion) in economic assistance for farmers struggling with low commodity prices and high input costs.

“We have to be able to help those who are in these dire straits,” said House Speaker Mike Johnson.

Net farm income is projected to decline 4.1% this year after falling 19.4% the year before from the record highs reached in 2022. Mr Johnson indicated more farm aid could be delivered in the next Congress, saying “we can’t do all of it right now”.

“Congress is doing the best it can under difficult circumstances, and I think it will be a big boost for the industry,” he said.

President Joe Biden has sought about 114 billion dollars (£89.6 billion) in disaster aid, submitting a 99 billion dollar (£77.9 billion) request in November, telling lawmakers the funding was “urgently needed”. The administration updated its request to include funding to repair federal facilities damaged due to natural disasters.

Speaker of the House Mike Johnson speaks to reporters at the Capitol
Speaker of the House Mike Johnson speaks to reporters at the Capitol (J Scott Applewhite/AP)

The largest share of the money, about 29 billion dollars (£22.8 billion), will go to the main disaster relief fund at the Federal Emergency Management Agency. The fund helps with debris removal, repairing public infrastructure and providing financial assistance to survivors. About 21 billion dollars (£16.5 billion) goes to help farmers who have experienced crop or livestock losses.

As it typically does, Congress is expected to act just before another shutdown deadline.

House Republicans generally give members 72 hours to review text of the legislation, which would push a vote on final passage to Friday if they follow through on that rule. The Senate is not known for acting speedily, but many politicians are anxious to adjourn for the year and make way for the next Congress.

Since the bill is the last must-pass legislation of the current Congress, members have worked to get certain priorities included. On the health care front, the legislation seeks to extend coverage of telehealth appointments for Medicare enrollees and rein in how much money pharmacy benefits managers — the companies that negotiate how and what drugs are covered by insurance plans — make off those deals.

The bill also includes provisions focused on countering China, including expanding on Mr Biden’s executive order that seeks to restrict investments into countries that pose a national security threat to the United States. Blocking China’s high-tech ambitions is one of the few issues that enjoys broad support in Washington from both Republicans and Democrats.

The legislation also provides full federal funding to rebuild Baltimore’s Francis Scott Key Bridge, which collapsed when struck by a cargo ship that reported losing power just before the crash. Federal taxpayers will be reimbursed through proceeds from insurance payments and litigation.

By Press Association

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