Finally, after months of budget negotiations, America has reached a long-term budget deal to fully fund the federal government through the remainder of the fiscal year. The $1.2 trillion package just passed covers about 75% of government spending, with the remainder already authorized in a bill signed into law earlier in the month. The latest legislation cleared the Republican-controlled House and the Democrat-led Senate, but it marginally reduces government spending and won’t significantly alter America’s fiscal destiny. The budget melodrama in Washington, DC, has finally concluded, and it’s time to assess the winners and losers of this long-awaited deal.
The 2024 fiscal year began nearly six months ago, and the delays culminated in an agreement that differed little from what the White House and Congress had agreed to in principle nearly a year ago. Kevin McCarthy was ousted as House speaker in October 2023 after preventing a lapse in government funding, and his successor, Mike Johnson, allowed three more “continuing resolutions” to avoid unnecessary government shutdowns. The bill is more popular with Democrats than Republicans, and it’s a relief that the melodrama has finally come to an end.
The months-long budget melodrama in Washington, DC, has finally concluded, and it’s time to assess the winners and losers of this long-awaited deal. The $1.2 trillion package just passed covers about 75% of government spending, with the remainder already authorized in a bill signed into law earlier in the month. The latest legislation cleared the Republican-controlled House and the Democrat-led Senate, but it marginally reduces government spending and won’t significantly alter America’s fiscal destiny.
2024-03-23 01:42:43
Original from www.economist.com