Congress, White House Near Deal on Spending, Debt Limit: Source

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Carlo Allegri/Reuters

U.S. congressional and White House negotiators are close to a deal to extend the Treasury Department’s borrowing authority until July 31, 2021 and enact spending caps on a wide range of federal programs, a source close to the talks said on Monday.

Details were still being worked out, according to the source, who said negotiators were aiming to set federal government spending caps for fiscal year 2020, which begins Oct. 1, and fiscal 2021 that would include about $75 billion in “offsets” savings.

Any deal reached by negotiators would have to be approved by the full House of Representatives and Senate.

President Donald Trump also would have to sign the legislation, which likely would not have spending cuts as deep as conservatives had been seeking.

Details on the $75 billion in cuts were not yet available.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have been holding private talks over the past few weeks to achieve a debt ceiling and a two-year budget deal before Congress begins a scheduled five-week summer recess.

Without such a deal, Treasury could bump up against its borrowing limit before Sept. 9, when Congress is set to return.

If the finishing touches are put on this plan, the House and Senate could try to pass the measure as early as this week.

Even with an agreement enacted into law, Congress still must pass a series of spending bills to implement any deal. It faces a Sept. 30 deadline, which is the end of the current fiscal year either to pass those bills or to temporarily extend current spending while new legislation is crafted.

Last December, Republican leaders thought they had a deal with Trump on legislation to fund a wide range of government activities for the current fiscal year. But at the last minute he demanded more money so that he could build a wall along the U.S.-Mexico border to keep out undocumented immigrants.

Democrats objected to the border wall funding and the breakdown led to record-long, partial government shutdowns.

(Reporting by Richard Cowan; Editing by David Gregorio and Steve Orlofsky)

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General Confusion
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Don’t forget, James, that Obama inherited a mess from Bush. He ballooned debt to help get the US out of a serious recession. I wouldn’t have done it the way he did, but it was effective AND King Donald The Loser is still riding Obama’s economic coattail. Fiscal 2007: $161 billion (next to last year of Bush’s second term) Fiscal 2008: $459 billion (beginning impact from the Great Recession) Fiscal 2009: $1.4 trillion (Obama’s first year and in the teeth of the Recession) Fiscal 2010: $1.3 trillion Fiscal 2011: $1.3 trillion Fiscal 2012: $1.1 trillion Fiscal 2013: $680 billion Fiscal… Read more »

General Confusion
Member

A $1.3 trillion budget deal, which includes $320 billion in additional spending over the course of two years. $320 BILLION? King Donald The Loser promised to cut our national debt “very quickly”.

I am confused King Donald. What happened to quickly cutting the debt? What a loser! The LAST time that a Republican president cut debt was Pres. Nixon, I think, certainly Eisenhower. All newer Repub presidents have ballooned our debt and Democrats had to rescue us. The almighty Reagan was a disaster.

MariaRose Randazzo
Member

It would be nice to know exactly what budget did they come up with and also does it pass the buck again on how to pay for it. You can’t spend or promise to spend money you don’t have, cuts have to be made somewhere, which means compromises across the board by all.

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