President Joe Biden has recently enacted a $1.2 trillion budget bill into law, providing funding for various federal government departments and agencies through Sept. 30, 2024. This bill, combined with an earlier measure, brings the total spending to over $1.6 trillion. The bipartisan nature of this funding bill represents a compromise, with neither side getting everything they wanted.
The passage of this bill comes after several short-term spending bills were required to keep the government funded due to partisan disputes over policy mandates and spending levels. It took lawmakers six months into the current budget year to reach an agreement. However, some conservatives are unhappy with the spending increases in the deal, with Rep. Marjorie Taylor Greene going so far as to file a motion to oust House Speaker Rep. Mike Johnson for his role in negotiating the measure.
The earlier package signed into law by President Biden on March 9 provided $460 billion in appropriations for major departments of the federal government, such as Agriculture, Commerce, Energy, Housing and Urban Development, Interior, Justice, Transportation, and Veterans Affairs. The latest package signed into law on March 23 provides $1.2 trillion to fund the Departments of State, Defense, Treasury, Homeland Security, Labor, Health and Human Services, and Education.
When combining the two government funding packages, discretionary spending for the current budget year amounts to roughly $1.66 trillion. However, this does not include programs like Social Security and Medicare or payments on America’s public debt.
The Congressional Budget Office (CBO) has recently released projections warning about the impact of mounting debt on economic growth and interest payments to foreign holders of U.S. debt. The CBO’s long-term budget outlook shows that debt held by the public could reach 166 percent of gross domestic product in 2054. This poses significant risks to the fiscal and economic outlook.
Under the $1.2 trillion spending package, the Pentagon receives $825 billion, $27 billion more than in the previous fiscal year. Additionally, there is $108 billion allocated for U.S. security cooperation with Taiwan and $300 million for the Ukraine Security Assistance Initiative. However, direct funding for Ukraine and Taiwan is not included in the spending bill, as a supplemental assistance package for both places is still being debated in Congress.
President Biden has called on lawmakers to continue working on obtaining more funding for Ukraine and Taiwan. He emphasized the importance of passing a bipartisan national security supplemental as well as a border security agreement that includes tough and fair reforms.
The latest spending package also includes funding for Customs and Border Protection, which includes resources for 22,000 Border Patrol agents. The Department of Homeland Security will receive $90 billion in discretionary funding, funding 41,500 detention beds. The Department of Health and Human Services would receive $116.8 billion, the Department of Education would receive $79.1 billion, and the State Department and U.S. Agency for International Development would receive $11.8 billion.
Additionally, the bill provides 12,000 special immigrant visas for Afghans who helped the United States. It partially defunds efforts to expand the IRS workforce by 85,000 agents, and includes $200 million for the construction of a new FBI headquarters in Maryland.
Overall, the enactment of this $1.2 trillion budget bill represents a compromise between lawmakers and aims to fund various federal government departments and agencies. While some conservatives are dissatisfied with the spending increases, President Biden emphasizes the importance of continuing to work on obtaining more funding for Ukraine and Taiwan as well as passing a border security agreement. The long-term budget outlook warns about the impact of mounting debt on economic growth and fiscal stability.
