House, Senate budget deal cuts $20 BILLION in 2024 spending

On Sunday, House Speaker Mike Johnson (R-LA) announced that negotiations with Senate majority leadership had been able to provide billions in spending cuts and to avoid an imminent shutdown.

In a letter released Sunday, Speaker Johnson wished a happy New Year and gave an update for spending in fiscal year 2024 (FY24).

"The topline constitutes $1.590 trillion for FY24 – the statutory levels of the Fiscal Responsibility Act. That includes $886 billion for defense and $704 billion for nondefense," the letter said, summarizing the total spending for the year. "The agreement today achieves key modifications to the June framework that will secure more than $16 billion in additional spending cuts to offset the discretionary spending levels."

Johnson summarized the wins that House Republicans were able to achieve in spending cuts while doing negotiations with Senate Democrats.

"In summary, the concessions we achieved will include an additional $10 billion in cuts to the IRS mandatory funding (for a total of $20 billion), which was a key part of the Democrats’ 'Inflation Reduction Act,'" Johnson wrote. "In addition, we will cut $6.1 billion from the Biden Administration’s continued COVID-era slush funds, which we achieved despite fierce opposition from the White House."

Johnson emphasized the savings that cuts from non-defense government spending as well as that the budget was able to cut "tens of billions below the levels" of the current continuing resolution spending package.

Graphs printed on the letter for the release show comparisons for non-defense spending for FY24 next to previous years.

Senate Majority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) released a joint statement on the spending package.

The statement relayed their feeling about the FY24 spending package. "The bipartisan topline appropriations agreement clears the way for Congress to act over the next few weeks in order to maintain important funding priorities."

"By securing the $772.7 billion for non-defense discretionary funding, we can protect key domestic priorities like veterans benefits, health care and nutrition assistance from the draconian cuts sought by right-wing extremists," the statement continued.

Schumer and Jefferies said they also "made clear" that Democrats will not support "poison pill policy changes" in any appropriations bills.

While a deal has been reached, Congress still has to craft bills funding the government and pass the legislation, according to the Wall Street Journal.