Fresh spending showdown looms as US Congress returns to Washington


FILE PHOTO: General view of the U.S. Capitol during morning hours, in Washington, U.S., March 30, 2023. REUTERS/Tom Brenner/File Photo

WASHINGTON (Reuters) - The Republican-controlled U.S. House of Representatives and the Democratic-led Senate this week will start to seek the upper hand in a spending showdown that could trigger a government shutdown just months after Congress narrowly avoided default.

Hardline Republicans are pushing their leader, House Speaker Kevin McCarthy, to cut budgets below the levels he and Democratic President Joe Biden agreed to a little more than a month ago. But Senate appropriators are aiming for bipartisan deals -- all of which point to difficult negotiations ahead -- as Congress returns from a two-week July 4 recess.

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