The Senate has reached an agreement on a spending increase for the upcoming fiscal year, with plans to boost defense spending by about 3.4% and non-defense programs by 2.7%. This agreement sets the stage for a potential clash with the House, which is pursuing lower spending levels in both categories.
Last year, President Joe Biden and then-Speaker Kevin McCarthy agreed on a 1% increase for defense and non-defense programs in fiscal year 2025, totaling approximately $780.4 billion for non-defense and $895.2 billion for defense. Some senators have expressed concerns that this increase may not keep up with inflation and could effectively result in cuts for many programs.
The bipartisan Senate agreement revealed this week includes an additional $13.5 billion in emergency funding for non-defense programs and $21 billion more for defense programs compared to the Biden-McCarthy agreement.
On the other hand, House Republicans are advocating for a more frugal approach, proposing a 1% increase for defense spending but significant cuts for non-defense programs, averaging around 6%. Some programs may face even deeper cuts, while certain GOP priorities may remain untouched.
Senator Patty Murray, the Democratic chair of the Senate Appropriations Committee, emphasized the importance of addressing funding shortfalls in non-defense areas. She has been collaborating with Senator Susan Collins, the ranking Republican on the committee, to determine discretionary spending for the next fiscal year.
Senator Collins highlighted the current security challenges posed by countries like Iran, Russia, and China, stressing the need to invest in a robust national defense. The agreement aims to allocate additional funds to the military while also focusing on combating the flow of fentanyl, supporting biomedical research, and sustaining affordable housing programs.
While the House has passed four of the 12 annual spending bills, the Senate has yet to approve any. However, the House bills have faced opposition from Democrats and the White House, making it unlikely for them to pass the Senate in their current form.
As the new fiscal year approaches on October 1, a prolonged battle over spending is anticipated, potentially requiring stopgap measures to keep the government operational. With the upcoming elections and lawmakers spending significant time outside of Washington, finalizing the spending bills may be delayed until after the elections or even into the following year.
The Senate Appropriations Committee is set to consider its initial three spending measures following the agreement reached by committee leaders.
