The House of Representatives and Senate return this week from their winter break, with government funding the top issue on their agenda. Over the weekend, Senate Majority Leader Chuck Schumer (D-NY) and Speaker of the House Mike Johnson (R-LA) announced their agreement on maximum funding levels for both defense and non-defense spending programs, clearing the way for congressional appropriations committees to advance spending bills in line with their agreement. Congress is facing potential government shutdowns for some federal programs on Jan. 19 with funding for remaining federal programs expiring on Feb. 2.

The agreement calls for an additional $16 billion in spending cuts from the Fiscal Responsibility Act that President Joe Biden negotiated with then-House Speaker Kevin McCarthy (R-CA) but does not contain several of the policy riders that are demanded by House conservatives and opposed by Senate Democrats. As a result, the agreement is meeting resistance from some House conservatives, with Johnson arguing that it would still allow Republicans to fight for policy riders to be included in House fiscal 2024 appropriations bills. Another short-term extension of current funding levels will probably be needed before the Jan. 19 initial deadline to give appropriations committees time to draft legislation that will garner the majority support of both House and Senate Republicans and Democrats.