Late Wednesday night, the Senate approved a bill to cancel $9 billion in federal funding. This includes $7.9 billion earmarked for foreign aid programs and $1.1 billion for the Corporation for Public Broadcasting. Senators voted 51–48, with two Republicans, Susan Collins and Lisa Murkowski, joining Democrats to oppose the bill. The legislation now moves to the House, where lawmakers must act before Friday or the funds will be released.
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Critics Warn of Community Impacts
Supporters frame the $9 billion cut as a necessary step toward Fiscal responsibility. Senate Majority Leader John Thune praised it as a move toward “fiscal sanity.” Still, compared with the $7 trillion federal budget, the cut is relatively small. Opponents are sounding the alarm. Senate Minority Leader Chuck Schumer warned that defunding public broadcasting would undermine local news, rural radio, and national security. They argue the move sacrifices programs Americans value to fund tax breaks for wealthy individuals.
Senators Rally to Protect Vital Programs
In a last-minute effort, lawmakers moved to shield important aid initiatives. They secured $400 million in continued funding for the PEPFAR HIV/AIDS program. Maternal health, malaria, and tuberculosis relief programs were also safeguarded. Senator Thom Tillis acknowledged the trade-offs, saying the bill may need fixes in the future if any unintended harms emerge.
At the same time, some Democrats criticized the broader implications of the bill, arguing it hands too much budget authority to the executive branch. They contend that Congress is abdicating its power to control the purse by approving a sweep of previously authorized spending. Minority Leader Schumer called the move a dangerous shift in congressional responsibility.
The bill now heads to the House. Lawmakers have until Friday to pass it, or the full $9 billion will be released.
How the Cuts Could Affect Stocks
The $9 billion cut may seem small next to a $7 trillion budget, but investors should still pay attention — especially in sectors tied to public funding.
Foreign aid cuts could hit companies like Caterpillar (CAT), which supplies heavy equipment for infrastructure abroad, or Pfizer (PFE) and Merck (MRK), which benefit from global health initiatives. Defense contractors like Lockheed Martin (LMT) and Raytheon (RTX) also sometimes ride on foreign military aid and support packages.
Defunding public media won’t shake the entire sector, but it could tighten spending for vendors that supply tech, broadcast systems, or local affiliates — think companies like Evertz Technologies (TSE:ET) or Sinclair Broadcast Group (SBGI).
More broadly, this kind of aggressive fiscal move hints at a shift toward deeper spending cuts. That could weigh on industries reliant on government support — like clean energy stocks (e.g., NextEra Energy (NEE)) or edtech firms (like Duolingo (DUOL) or Chegg (CHGG)) if similar cuts follow.
On the flip side, markets may reward the signal of budget restraint. A stronger dollar and lower deficit can benefit multinationals like Apple (AAPL) or Microsoft (MSFT) that rely on global revenue and stable macro conditions.
So while this vote won’t shake the entire market, it does raise new questions for sectors exposed to government spending.
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