The Trump administration and congressional leaders, including Democrats, have reached a critical debt and budget agreement, a deal that amounted to an against-the-odds victory for Washington pragmatists seeking to avoid politically dangerous tumult over fiscal deadlines, President Trump announced Monday.
The deal would increase spending caps by $320 billion relative to the limits prescribed in the 2011 Budget Control Act, whose provisions have repeatedly been waived year after year. It would also suspend the debt ceiling and permit more government borrowing until July 31, 2021 — after the next presidential election.
The arrangement all but eliminates the risk of another government shut down this fall, but already has been drawing the ire of fiscal conservatives saying it will lead to more irresponsible government spending.
Even some Democrats — including Vermont Sen. Patrick J. Leahy — were outraged, saying the bill would not block Trump from spending money on his proposed border wall.
“I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy – on a two-year Budget and Debt Ceiling, with no poison pills,” Trump wrote.
He added: “This was a real compromise in order to give another big victory to our Great Military and Vets!”
Democrats celebrated that, under the new deal, the domestic, non-military budget receives larger increases than the defense budget, when compared to last year.
The deal, which must still pass Congress, also comes as budget deficits have been rising to $1 trillion levels — requiring the government to borrow a quarter for every dollar the government spends — despite the thriving economy and three rounds of annual Trump budget proposals promising to crack down on the domestic programs that Pelosi, D-Calif., has been defending.
It apparently ignored warnings from fiscal conservatives saying the nation’s spending has been unsustainable and eventually will drag down the economy.
“This agreement is a total abdication of fiscal responsibility by Congress and the president,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a Washington advocacy group. “It may end up being the worst budget agreement in our nation’s history, proposed at a time when our fiscal conditions are already precarious.”
This is a developing story. Check back for updates.
The Associated Press contributed to this report.
Source : Gregg Re Link