2024 (2024) Budget of the United States federal government
Submitted byJoe Biden
Submitted to118th Congress
WebsiteBudget of the US Government
‹ 2023
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The United States federal budget for fiscal year 2024 runs from October 1, 2023, to September 30, 2024.

For the first months of the fiscal year (which begins October 1), the federal government is operating under continuing resolution (CR) that extends 2023 budget spending levels as legislators debate the specific provisions of the 2024 budget. The current CR is set to expire in early 2024.

Background

Federal Government annual spending and revenue

Under the United States budget process established in 1921, the US government is funded by twelve appropriations bills that are formed as a response to the presidential budget request submitted to congress in the first few months of the calendar year. Through various processes including reconciliation and Vote-a-rama, the various legislators in the two chambers of congress negotiate over the precise details of the various appropriations bills. In some politically contentious years when these negotiation processes deadlock, the Legislative Branch passes a continuing resolution that essentially extends the current funding levels into the new fiscal year until a budget can be agreed upon by a majority of both houses and signed into law by the President of the United States.

Beginning in 2009, the fiscally conservative Tea Party movement within the Republican Party gained ascendancy in resistance to Obama-era increases in government spending (most visibly due to Obamacare and Troubled Asset Relief Program (TARP)). Throughout the early 2010s, the Tea Party forced debate over balanced budgets led to a series of austerity measures and debt-ceiling negotiations intended to decrease federal spending. Notable events included the 2011 United States debt-ceiling crisis, 2013 United States debt-ceiling crisis, 2013 United States budget sequestration, and the formation of the Freedom Caucus in January 2015 by a group of conservatives and Tea Party movement members,[1][2] with the aim of pushing the Republican leadership to the right.[3] Its first chairperson, Jim Jordan, described the caucus as a "smaller, more cohesive, more agile and more active" group of conservative representatives.[4] Jordan later remarked that during the Trump administration, the Freedom Caucus shifted focus from passing legislation to defending President Trump.[5] Under the Trump administration, the longest government shutdown was less about balanced budgets and more a result of an impasse over Donald Trump's proposed border wall with Mexico as Trump threatened to veto spending legislation. Republicans have remained defiant against voting for spending bills in the 118th Congress; several Republicans aligned with the Freedom Caucus have refused to vote for spending bills under Biden, including Chip Roy, Lauren Boebert, and Andy Biggs.[6]

The 2022 midterm elections resulted in a narrow Senate majority for the Democratic Party and a House of Representatives majority for the Republican Party. In the 118th Congress, the Freedom Caucuscongressional caucus, has secured a number of House of Representatives seats. Kevin McCarthy, leader of the House Republican Conference, was elected speaker of the House after several days of voting as opposition—primarily led by members of the Freedom Caucus—mounted against him; McCarthy conceded to his opponents to negotiate their support for his speakership.[7] One of these concessions was that any singular member of Congress can initiate a motion to vacate.[8]

Budget legislation

The Biden administration budget proposal was released in March 2023.[9]

In May 2023, McCarthy negotiated with president Joe Biden on a deal to resolve a debt-ceiling crisis and an imminent debt default. In response, Republicans, led by Matt Gaetz, blocked a bill protecting gas stoves against federal regulations[10] in order to force McCarthy to choose between acquiescing to the insurgents and passing legislation that would face resistance in the Senate, or to work with Democrats and contend with a potential ousting.[11] Grievances among Republicans quelled several days later after an agreement was made, but Freedom Caucus members threatened that a blockade could occur if their demands were not met.[12]

The Fiscal Responsibility Act of 2023, passed in June, resolved the debt-ceiling crisis and set spending caps for FY2024 and FY2025.

Appropriations legislation

Opposition to Kevin McCarthy served as the impetus to the potential shutdown.

Summer 2023 negotiations

Negotiations for funding the federal government for the 2024 fiscal year began in July. Republican demands to cut government spending concerned Democrats in the House of Representatives. Rosa DeLauro, the ranking member of the House Committee on Appropriations, stated that Republican opposition would ultimately result in a government shutdown. The Senate Committee on Appropriations remained committed to securing a deal according to ranking members Patty Murray and Susan Collins.[6]

In a show of austerity, members of the Freedom Caucus threatened to refuse to hold a vote on two spending bills supported by McCarthy in July 2023; representative Bob Good stated that members should not "fear a government shutdown".[13] Republicans in the House of Representatives abandoned efforts to fund the Department of Agriculture and Food and Drug Administration (FDA) that month but narrowly passed a bill to fund veterans programs and military construction projects. In particular, Republicans sought to include language that reversed an FDA ruling allowing the oral abortion pill mifepristone to be sold in retail pharmacies.[14] In August, Trump was federally indicted for attempting to overturn the 2020 presidential election, further complicating efforts to fund the Federal Bureau of Investigation and the Department of Justice.[15] Senate majority leader Chuck Schumer agreed to a temporary spending bill with McCarthy to avert a shutdown that month.[16] McCarthy argued that a shutdown could prevent the House Committee on Oversight and Accountability from investigating the Biden family, but some Republicans remained dismissive.[17]

September shutdown concerns

Continuing Appropriations Act, 2024 and Other Extensions Act
Great Seal of the United States
Long titleAn act making continuing appropriations for fiscal year 2024, and for other purposes.
Enacted bythe 118th United States Congress
Citations
Public lawPub. L.Tooltip Public Law (United States) 118–15 (menu; GPO has not yet published law)
Legislative history
  • Introduced in the House as H.R. 5680 by Kay Granger (R–TX) on September 30, 2023
  • Passed the House on September 30, 2023 (335–91)
  • Passed the Senate on September 30, 2023 (88–9)
  • Signed into law by President Joe Biden on September 30, 2023

By September, the federal government appeared poised to shut down.[18] The Freedom Caucus stated its opposition to any bill that would not include a border measure that revives Trump-era policies, including constructing the Trump border wall, detaining asylum seekers for longer, and deporting unaccompanied minors.[19] Additionally, the caucus threatened to depose McCarthy if he turned to Democrats to gather more votes.[20] Bowing to resistance, McCarthy pulled a Pentagon funding bill that month.[21] House Republicans began considering a temporary bill to fund the government on September 17,[22] but were met with opposition from within the party.[23] In spite of far-right Republicans derailing a second Pentagon funding bill,[24] McCarthy remained optimistic and appeased his opponents.[25] According to individuals familiar with talks, billions of dollars in new assistance for Ukraine is central to Senate discussions to avoid a shutdown.[26] On September 26, the Senate reached a spending deal to fund the government through November.[27] McCarthy opposed the deal, telling his conference that he would not put the Senate bill on the House floor.[28]

September 2023 continuing resolution

On September 29, the House Committee on Rules convened to consider a continuing resolution to fund the federal government for an additional month.[29] The bill failed with additional far-right Republicans defying McCarthy.[30] McCarthy stated that he would support a continuing resolution without aid for Ukraine.[31] The following day, hours before a shutdown was expected to occur, the House voted to pass a continuing resolution to fund the government through November 17. Nearly the entire Democratic Caucus supported the resolution, and it was approved in the Senate.[32]

November 2023 continuing resolution

Further Continuing Appropriations and Other Extensions Act, 2024
Great Seal of the United States
Long titleAn act making further continuing appropriations for fiscal year 2024, and for other purposes.
Enacted bythe 118th United States Congress
Citations
Public lawPub. L.Tooltip Public Law (United States) 118–22 (menu; GPO has not yet published law)
Legislative history
  • Introduced in the House as H.R. 6363 by Kay Granger (R–TX) on November 13, 2023
  • Passed the House on November 14, 2023 (336–95)
  • Passed the Senate on November 16, 2023 (87-11)
  • Signed into law by President Joe Biden on November 16, 2023

As threatened, Gaetz introduced the motion to vacate and it passed 216–210, with 8 Republican votes swinging the balance, removing McCarthy as speaker. The speakership seat was immediately vacated and for the next several weeks, Patrick McHenry—a McCarthy ally—was made speaker pro tempore. During this period, the House did not pass any legislation as it was obligated to resolve the October 2023 Speaker of the United States House of Representatives election with Speaker candidates including Jim Jordan and Steve Scalise. On October 7, the 2023 Israel–Hamas war broke out, and the House was also unable to pass any resolutions or military aid to Israel because of the lack of House leadership. During some of the GOP balloting discussions, proposals emerged for extending the CR to April 2024 and mandating a 1% across-the-board cut. On October 25, Mike Johnson was elected as the Speaker of the House of Representatives by a vote of 220–209.[33] Johnson implemented the strategy of passing individual appropriations, however only HR 4821, 4364 and 4394 passed the House before the budget deadline elapsed; a Continuing Resolution passed the House on November 14 with bipartisan support.[34] The Senate passed the bill on November 15. The new CR extends funding for military, transportation and Housing and Urban Development departments until January 19, 2024, with other funding for the rest expiring on February 2.[35]

January 2024 shutdown concerns

Following the passage of the November continuing resolution, neither the House nor the Senate advanced any funding bills,[36] as hardline Republicans successfully pushed Speaker Johnson to abandon the funding levels reached in the Fiscal Responsibility Act.[37]

On January 7, 2024, congressional leaders reached a US$1.66 trillion agreement for topline spending.[38] Following the agreement, hardline Republicans again attempted to push Johnson to abandon the deal.[39] Several senior members of congress indicated an interest in passing another continuing resolution into March to allow for more time to draw up funding bills aligned with the deal.[40]

References

  1. ↑ French, Lauren (January 26, 2015). "9 Republicans launch House Freedom Caucus". Politico. Retrieved 2021-07-08.
  2. ↑ Ferrechio, Susan (January 26, 2015). "Conservative lawmakers form House Freedom Caucus". Washington Examiner. Retrieved July 22, 2015.
  3. ↑ Desilver, Drew (Oct 20, 2015). "House Freedom Caucus: What is it, and who's in it?". Pew Research Center. Retrieved 2021-02-07.
  4. ↑ Eaton, Sabrina (February 11, 2015). "It's official: Rep. Jim Jordan now chairs the House Freedom Caucus". Cleveland. Archived from the original on February 16, 2019. Retrieved July 22, 2015.
  5. ↑ "House Freedom Caucus plots return to relevance as GOP eyes majority". September 22, 2022.
  6. 1 2 Edmondson, Catie; Hulse, Carl; Parlapiano, Alicia (July 2, 2023). "House Republicans Demand Deep Cuts to Spending Bills They Rarely Support". The New York Times. Retrieved September 27, 2023.
  7. ↑ Karni, Annie (June 7, 2023). "House Is Paralyzed as Far-Right Rebels Continue Mutiny Against McCarthy". The New York Times. Retrieved September 27, 2023.
  8. ↑ Tsirkin, Julie; Kaplan, Rebecca; Kapur, Sahil (September 14, 2023). "McCarthy dares GOP detractors to 'file the f---ing motion' if they want to remove him". NBC News. Retrieved September 27, 2023.
  9. ↑ "President Biden's FY2024 Budget Now Available at GovInfo" (Press release). United States Government Publishing Office. 9 March 2023. Retrieved 24 June 2023.
  10. ↑ Karni, Annie (June 7, 2023). "House Is Paralyzed as Far-Right Rebels Continue Mutiny Against McCarthy". The New York Times. Retrieved September 27, 2023.
  11. ↑ Hulse, Carl (June 8, 2023). "Kevin McCarthy Facing Tough Choices After House Mutiny". The New York Times. Retrieved September 27, 2023.
  12. ↑ Karni, Annie (June 12, 2023). "Hard Right Agrees to Allow House Votes but Threatens Continued Blockade". The New York Times. Retrieved September 27, 2023.
  13. ↑ Karni, Annie; Draper, Robert; Broadwater, Luke (July 25, 2023). "As Spending Fights Loom, Freedom Caucus Is at a Crossroads". The New York Times. Retrieved September 27, 2023.
  14. ↑ Hulse, Carl (July 27, 2023). "Divided Over Money and Policy, House G.O.P. Punts on Spending Bill". The New York Times. Retrieved September 27, 2023.
  15. ↑ Hulse, Carl (August 4, 2023). "Trump Indictment Presents New Obstacle in Spending Fight as Shutdown Looms". The New York Times. Retrieved September 27, 2023.
  16. ↑ Karni, Annie (August 16, 2023). "Schumer and McCarthy Agree Stopgap Spending Bill Necessary to Avoid Shutdown". The New York Times. Retrieved September 27, 2023.
  17. ↑ Hulse, Carl; Broadwater, Luke (August 30, 2023). "McCarthy Tries to Leverage Biden Impeachment to Avoid a Shutdown". The New York Times. Retrieved September 27, 2023.
  18. ↑ Hulse, Carl (September 10, 2023). "Congress Embarks on Spending Battle as Shutdown Looms at End of September". The New York Times. Retrieved September 27, 2023.
  19. ↑ Demirjian, Karoun (September 1, 2023). "Hard Right Injects Immigration Into Spending Fight, Raising Shutdown Fears". The New York Times. Retrieved September 27, 2023.
  20. ↑ Hulse, Carl (September 11, 2023). "McCarthy Is Under the Gun as the House Returns for a Spending Fight". The New York Times. Retrieved September 27, 2023.
  21. ↑ Hulse, Carl (September 14, 2023). "McCarthy Pulls Back Pentagon Spending Bill, Inching Closer to a Shutdown". The New York Times. Retrieved September 27, 2023.
  22. ↑ Hulse, Carl (September 17, 2023). "House G.O.P. Considers Stopgap Spending Bill to Avert a Shutdown". The New York Times. Retrieved September 27, 2023.
  23. ↑ Hulse, Carl (September 18, 2023). "McCarthy's Plan to Avoid a Shutdown Hits Stiff G.O.P. Opposition". The New York Times. Retrieved September 27, 2023.
  24. ↑ Hulse, Carl (September 19, 2023). "Right-Wing House Republicans Derail Pentagon G.O.P. Bill, Rebuking McCarthy". The New York Times. Retrieved September 27, 2023.
  25. ↑ Hulse, Carl; Karni, Annie (September 20, 2023). "Republicans Inch Closer to Spending Deal, Spoiling for a Shutdown Showdown". The New York Times. Retrieved September 27, 2023.
  26. ↑ Hulse, Carl; Edmondson, Catie (September 20, 2023). "Money for Ukraine at Center of Senate Bid to Avert Shutdown". The New York Times. Retrieved September 27, 2023.
  27. ↑ Hulse, Carl; Edmondson, Catie (September 26, 2023). "Senate Reaches Spending Deal to Head Off Government Shutdown". The New York Times. Retrieved September 27, 2023.
  28. ↑ Bogage, Jacob; Sotomayor, Marianna (September 27, 2023). "Shutdown looks more likely, as House GOP leaders reject Senate plan". The Washington Post. Retrieved September 30, 2023.
  29. ↑ Wang, Amy (September 29, 2023). "House Rules Committee considering GOP-led stopgap funding bill". The Washington Post. Retrieved September 30, 2023.
  30. ↑ Edmondson, Catie; Guo, Kayla; Hulse, Carl (September 29, 2023). "Right Wing Tanks Stopgap Bill in House, Pushing Government Toward a Shutdown". The New York Times. Retrieved September 30, 2023.
  31. ↑ Kane, Paul; McDaniel, Justine (September 29, 2023). "McCarthy says he'd support a bill without Ukraine aid or border funds". The Washington Post. Retrieved September 30, 2023.
  32. ↑ "Senate Voting to Keep Government Running Through Mid-November". The New York Times. September 30, 2023. Retrieved September 30, 2023.
  33. ↑ "House elects Mike Johnson as Speaker, ending GOP chaos". The Hill. 2023-10-25. Retrieved 2023-10-25.
  34. ↑ Edmondson, Catie (November 14, 2023). "House Passes Johnson's Plan to Avert Shutdown in Bipartisan Vote". The New York Times. Retrieved November 14, 2023.
  35. ↑ Bogage, Jacob (2023-11-16). "Senate passes bill to avert government shutdown, sending it to Biden to sign". Washington Post. ISSN 0190-8286. Retrieved 2023-11-16.
  36. ↑ "Appropriations Status Table". crsreports.congress.gov. Retrieved January 13, 2024.
  37. ↑ punchbowlnews (2023-12-21). "☀️ AM: How Congress jammed itself on spending". Punchbowl News. Retrieved 2024-01-13.
  38. ↑ Bogage, Jacob (January 7, 2024). "Congressional leaders reach deal that would avert government shutdown". The Washington Post. Retrieved January 7, 2024.
  39. ↑ Edmondson, Catie (2024-01-10). "Conservatives Revolt Anew Over Johnson Deal to Avert Shutdown". The New York Times. ISSN 0362-4331. Retrieved 2024-01-13.
  40. ↑ Barrett, Ted (2024-01-09). "Senate Republican whip says Congress may need to pass short-term government funding bill into March | CNN Politics". CNN. Retrieved 2024-01-13.
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