US Congress Reveals Two-Phase Interim Funding Strategy

US Congressional leaders have unveiled a strategic two-step funding plan. This approach, aimed at averting a fiscal crisis, involves temporarily funding certain federal agencies while negotiations on broader spending continue.

Under this new arrangement, key government departments, including Agriculture, Energy, and Transportation, will receive interim funding until March 1. The remaining federal agencies, notably including Defense and Homeland Security, are set to have their funding extended through March 8.

This approach represents the third such stopgap measure since the expiration of the fiscal 2023 funding last September.

Facing a tight deadline of January 19 to prevent a shutdown, Congress is under pressure to approve this continuing resolution (CR). This move follows a similar structure to previous funding deadlines set for January 19 and February 2.

However, the path to agreement has not been without contention. Hard-line House Republicans have expressed dissatisfaction with the short-term nature of the CR. They advocate for a longer-term stopgap, citing the Financial Responsibility Act's provisions for automatic spending cuts as a leverage point for budget negotiations, particularly on issues like border and migration policy.

“I mean the difficulty is that, with less money, everybody’s trying to figure out how to make this work,” said Sen. Jerry Moran (Kan.).

Despite these internal disagreements, Senate leaders are poised to initiate the CR's passage process, emphasizing the necessity for bipartisan cooperation to avoid a shutdown.