As we approach critical deadlines for federal budget negotiations, we want to provide you with a concise update on the latest developments on Capitol Hill:

Stopgap Spending Bill Necessity: Lawmakers from both sides of the aisle have acknowledged the imperative need for a short-term stopgap spending bill. This temporary measure is deemed necessary to afford appropriators the time required to finalize fiscal year 2024 funding measures after a recent topline deal.

Subcommittee Allocations Negotiations: Negotiations are currently underway between Senate Appropriations Chair Patty Murray (D-WA)  and House Appropriations Chairwoman Kay Granger (R-TX) regarding joint subcommittee allocations. The goal is to have these allocations finalized by Friday, January 12. Without these crucial numbers, the completion of the bills' drafting remains unattainable.

Impending January 19 Deadline: As we approach the January 19 deadline, there is a growing urgency to pass funding for various agencies. Failure to pass either the full-year bills or a stopgap measure by this date would result in a partial lapse in funding for agencies such as Agriculture, Energy-Water, Military Construction-VA, and Transportation-HUD.

Potential Lapse in Funding and Critical Functions: In the absence of a funding solution, there is a risk of a partial lapse in funding, affecting certain agency functions. However, critical functions, such as veterans' health care (due to advance funding) and public safety measures like air traffic control, are expected to continue.

Speaker's Commitment and Potential CR: Speaker Mike Johnson has stated that the continuing resolution (CR) introduced in November would be the last short-term stopgap measure. Despite this commitment, the complexity of finalizing full-year appropriations may necessitate another short-term stopgap measure, potentially until March 1.