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August 4, 2025
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Congressional leaders announce an agreement on spending levels, a key step to averting shutdown

WASHINGTON  — Congressional leaders have reached an agreement on overall spending levels for the current fiscal year that could help avoid a partial government shutdown later this month.

The agreement largely hews to spending caps for defense and domestic programs that Congress set as part of a bill to suspend the debt limit until 2025. But it does provide some concessions to House Republicans who viewed the spending restrictions in that agreement as insufficient.

In a letter to colleagues, House Speaker Mike Johnson said Sunday the agreement would secure $16 billion in additional spending cuts from the previous agreement brokered by then-Speaker Kevin McCarthy and President Joe Biden and is about $30 billion less than what the Senate was considering.

“This represents the most favorable budget agreement Republicans have achieved in over a decade,” Johnson writes.
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Biden said the agreement “moves us one step closer to preventing a needless government shutdown and protecting important national priorities.”

“It reflects the funding levels that I negotiated with both parties and signed into law last spring,” Biden said in a statement. “It rejects deep cuts to programs hardworking families count on, and provides a path to passing full-year funding bills that deliver for the American people and are free of any extreme policies.”

The agreement speeds up the roughly $20 billion in cuts already agreed to for the Internal Revenue Service and rescinds about $6 billion in COVID relief money that had been approved but not yet spent, according to Johnson’s letter.

“It’s a good deal for Democrats and the country,” Senate Majority Leader Chuck Schumer told colleagues in a briefing call.

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