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New Year, Same Problems: Government Shutdown, CR or Full-Year Budget?

Earlier this week, Congress announced a deal on topline spending numbers, frozen at last year's debt limit levels, kick starting the negotiation process for the final appropriations bills. The deal establishes an overall spending budget for FY 2024, allocating $886 billion to military spending and $704 billion for non-defense discretionary spending.  
 
Currently, the government is funded by an unusual Continuing Resolution (CR) with two deadlines, January 19 and February 2. Without a funding solution by February 2, funding for Labor/HHS and the rest of the government will lapse.  
 
Talks are still ongoing and three outcomes remain: a full or partial government shutdown, another CR or, the best-case scenario, a final budget. Congress is likely to pass another short-term CR to buy more time to draft the final funding bills, with bipartisan support from the Senate. However, House Republicans are more inclined to pass either an appropriations bill or a year-long CR. The latter is not a good option, as it would trigger a one percent across-the-board cut, thanks to last May's debt ceiling deal.  

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