House Speaker Mike Johnson, in a letter to colleagues, announced that the deal secures an additional $16 billion in spending cuts compared to the previous agreement. Notably, it stands approximately $30 billion less than what the Senate was contemplating.
According to Johnson, this agreement marks the most favorable budget achieved by Republicans in over a decade.
President Joe Biden expressed approval, stating that it brings the nation closer to preventing an unnecessary government shutdown while safeguarding essential national priorities.
Key Components
The deal accelerates approximately $20 billion in cuts already earmarked for the Internal Revenue Service (IRS) and rescinds around $6 billion in unspent COVID relief funds.
Democrats see this as a favorable trade-off, emphasizing that the COVID savings won’t significantly impact ongoing projects or activities.
Senate Majority Leader Chuck Schumer hailed the agreement as a “good deal for Democrats and the country,” asserting that the COVID-related adjustments would not hinder critical investments previously sanctioned by Congress in 2022.
