Funding deal reached as Congress races to avert shutdown

Congressional leaders have clinched a deal on overall budget totals that could pave the way for a broader government funding compromise in the coming weeks — further enraging Speaker Mike Johnson’s right flank.

The bipartisan agreement sets defense funding at $886 billion for the current fiscal year, in line with the total President Joe Biden and former Speaker Kevin McCarthy negotiated as part of last summer’s debt ceiling package. In a big win for Democrats, the accord pegs non-defense funding at nearly $773 billion, a total that counts tens of billions of dollars agreed to alongside the debt limit package.

Lawmakers have just 12 days to negotiate and finalize bill text before cash for many federal agencies expires on Jan. 19, while funding for the rest of the government runs out on Feb. 2, including for the military and the biggest domestic programs. A shutdown remains possible, with a host of thorny policy issues still unresolved, as well as conservative demands to attach GOP border reforms to spending legislation.