The deadline for the 2019 federal budget was imminent as Democrats and Republicans in Congress reached a brinkmanship situation. On December 20, 2019, they agreed to a budget that would avert a government shutdown and gave temporary funding for many federal agencies.
The appropriations bill was a temporary patch that allowed the federal government to stay open until February 15, 2020. It was finalized amid aggressive timelines, partisan negotiating tactics, and conservative pressure to redirect funding from some social programs. By providing the necessary funds while preventing a shutdown in December, Congress was able to pass the bill and avert a near-term crisis.
However, this agreement does not provide a long-term solution to the U.S.’s fiscal needs. The budget gap has grown considerably in the last decade due to rising debt and lack of economic growth. Congress and the administration must now find a way to close this gap and restore fiscal discipline.
The temporary budget resolution is only a first step in what will likely be a long and grueling budget process. To overcome a budget shortfall, Congress will need to pass a bipartisan budget bill that meets the needs of both parties. This includes reducing and reforming entitlement programs (such as Social Security and Medicare), increasing tax revenues, and finding ways to modernize and streamline government services.
Congress and the administration also need to implement measures to spur economic growth. This includes investing in infrastructure, encouraging job-creating investments, and providing incentives for businesses. These measures could potentially increase revenue and help reduce the budget deficit over time.
Though Congress was able to avoid a government shutdown at the end of 2019, the real fiscal fight is just beginning. Lawmakers must now craft a budget bill that is both pragmatic and palatable to both sides of the aisle. It won’t be easy, but it is essential for the fiscal health of the nation.