The US Congress remains far from the finish line of a budget deal

AFTER MONTHS of wrangling and short-term extensions, on January 7th America’s congressional leaders announced the outline of an agreement to avoid a government shutdown. If that sounds too good to be true, it’s because it is. Although the latest news from House and Senate leadership is a step forward, serious disagreements persist and Congress remains far from the finish line.Mike Johnson, the Republican House speaker, told his colleagues over the weekend that the leadership had agreed to $886bn for defence and $704bn for other discretionary spending for the 2024 fiscal year. That is in line with a deal negotiated last year between Mr Johnson’s predecessor, Kevin McCarthy, and President Joe Biden. In exchange for raising the debt ceiling, total discretionary spending would be limited to $1.59trn in 2024.