FY24 Government Funding Expires March 14, 2025

Federal government funding will expire in 11 days. Congressional leadership will primarily focus on preventing a shutdown over the next two weeks. The House of Representatives will initially attempt to pass a continuing resolution (CR) to extend funding by the end of the current fiscal year (September 30). Historically, House Republicans have often required Democratic support to pass funding bills. Some Republicans aim to use this CR to implement certain spending cuts, which Democrats are unlikely to support. Conversely, Democrats seek to include language in the CR mandating the administration to spend funds appropriated by Congress, but such provisions would lead President Trump to reject the CR, prompting Republicans to exclude it. Speaker Mike Johnson (R-LA) indicated his desire to advance a “clean CR.” However, the proposed document is expected to incorporate changes to current funding levels as requested by the White House. These “technical anomalies” include increased funding for veterans' medical care, ICE, and tenant-based rental assistance, alongside a $20 million reduction in IRS enforcement funding authorized by the 2022 Inflation Reduction Act. The critical question remains whether enough House Democrats will support the CR to avoid a government shutdown. Before recent developments, Democrats would have likely supported the CR. However, due to calls from their base to oppose recent Executive branch actions, the outcome remains uncertain.

The Senate will await the House's actions. Any CR passed by the House will require the endorsement of at least seven Senate Democrats to be approved.  This situation could further complicate the Speaker’s task of managing his divided conference. The far-right faction will likely express strong opposition to funding the government with Democratic support and without implementing spending cuts aligned with President Biden's proposals. Additionally, defense advocates will face delays in securing the desired increases in defense spending.