From Quiver Quantitative:

U.S. congressional leaders have agreed on a $1.59 trillion spending cap for fiscal year 2024, reducing the risk of a government shutdown. Senate Majority Leader Chuck Schumer and House Speaker Mike Johnson led the bipartisan agreement. However, budget maneuvers and potential policy rider disagreements may hinder full Republican support. President Joe Biden has welcomed the deal, including $16 billion in spending cuts, while urging Republicans to ensure funding for essential domestic and national security priorities. The deal must navigate conservative pushback and consensus on policy riders, with potential hurdles from both Republican factions.

The agreement has bipartisan support but not complete agreement on policy riders, paving the way for detailed budget negotiations. While budget negotiations will begin, potential hurdles from conservative opposition and policy riders could hinder the deal’s full support. The deal relies on accounting maneuvers that might generate criticism, and both Democrat and Republican factions might oppose the deal. Challenges remain as the agreement is silent on some conservative policy demands and doesn’t permit certain types of budgetary maneuvers, leaving the possibility of a government shutdown if lawmakers fail to resolve spending levels for key federal agencies.



Read more: U.S. Congress Agrees on Spending Cap Amid Policy Tensions