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U.S. administration backs AGOA extension in budget talks

The administration of U.S. President Donald Trump has confirmed support for a one-year extension of the African Growth and Opportunity Act (AGOA), the trade initiative with sub-Saharan Africa that provides duty-free access to the U.S. market. AGOA, first passed in 2000, was set to expire on Tuesday.

The extension debate coincides with broader budget negotiations in Congress. Democrats want expiring health benefits tied to any funding deal, while Republicans insist healthcare and budget issues should be handled separately. Senate Democratic Leader Chuck Schumer said the two sides "have very large differences."

Failure to reach an agreement could trigger a government shutdown, affecting thousands of federal employees across agencies, delaying grants, and disrupting services. Budget stand-offs have become routine in Washington, though they are usually resolved near deadlines.

At issue is US$1.7 trillion in discretionary spending, about one-quarter of the total US$7 trillion federal budget. The remainder funds healthcare, retirement programs, and interest on the US$37.5 trillion national debt. Democrats have proposed extending funding for 7–10 days to allow more talks, while Republicans want an extension through November 21. Schumer said he would not accept the shorter measure. Senate Republican Leader John Thune has scheduled a vote on the Republican plan, which has already failed once.

Healthcare remains central to the dispute. About 24 million Americans covered through the Affordable Care Act could face higher costs if temporary tax breaks are not renewed. House Democratic Leader Hakeem Jeffries said, "We believe that simply accepting the Republican plan to continue to assault and gut healthcare is unacceptable." Republicans say they are open to discussion, but not as part of a temporary funding patch.

There have been 14 partial shutdowns since 1981. The most recent, in 2018–2019, lasted 35 days.

Source: Reuters