New Federal Budget Deal Reached Between Trump & Congress Explodes Deficit With $320 Billion Spending Increase
Top congressional leaders and White House officials reached a two-year federal budget agreement late Monday that would increase spending by $320 billion on existing caps and also raise the debt limit.
This deal would likely avert a default crisis but also balloon an already growing deficit. The deficit had already started to grow significantly when President Donald Trump took office in 2017 and Republican lawmakers — who at the time held the majority in both houses of Congress — passed a huge tax cut plan.
Among the participants of the deal were House Speaker Nancy Pelosi (D-California), Senate Minority leader Chuck Schumer (D-New York), Senate Majority Leader Mitch McConnell (R-Kentucky), House Minority Leader Kevin McCarthy (R-California) and Treasury Secretary Steve Mnuchin.
In a tweet on Monday, Trump called the deal a “real compromise” that represents a “big victory to our Great Military and Vets.”
Subscribe to our free weekly newsletter!
A week of political news in your in-box.
We find the news you need to know, so you don't have to.
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….
— Donald J. Trump (@realDonaldTrump) July 22, 2019
….This was a real compromise in order to give another big victory to our Great Military and Vets!
— Donald J. Trump (@realDonaldTrump) July 22, 2019
The federal deficit is gradually nearing $1 trillion per year. Under the current budget pact, the government could continue borrowing for approximately two more years, which means the next deal likely wouldn’t be reached until after the 2020 election. The deal would also largely reverse concessions Republicans obtained in the 2011 Budget Control Act.
SLIDESHOW: TOP DEMOCRATS RUNNING FOR PRESIDENT IN 2020
As part of the new accord, domestic and military spending would increase, something Pelosi and Schumer both insisted should occur. This would reportedly be offset by $77.4 billion in spending cuts, roughly half the amount many Trump administration officials had initially demanded. Also part of the agreement is $2.5 billion allotted for the 2020 census.
Many people on social media were quick to raise their concern over lawmakers’ fiscal strategy.
There are no small government conservatives left in Washington. None. If Newt Gingrich agreed to this deal, we would have run him out of DC on the same day. We balanced the budget four years in a row. These Big Government Republicans are bankrupting us. https://t.co/6fL3G9BF3G
— Joe Scarborough (@JoeNBC) July 23, 2019
Proposed Pelosi-Mnuchin budget deal would largely reverse concessions conservatives got in the 2011 debt crisis agreement. That would be a significant defeat for Mulvaney. @jenhab w the details. https://t.co/ln1V7xX9DP
— David Lauter (@DavidLauter) July 22, 2019
It’s good that the budget deal lifts the debt ceiling & moves us past the austerity of the Budget Control Act. But I remain concerned that defense spending has increased $100 billion since Trump took office and now represents nearly 60% of discretionary federal spending.
— Ro Khanna (@RoKhanna) July 23, 2019
Last wk, Trump told 4 brown skinned Americans to “go back to where they came from.” Republicans said nothing.
Today, he announced a budget deal that adds trillions to the debt & busts all spending caps. Republicans say nothing.
The Republican Party is now a cult of personality.
— Joe Walsh (@WalshFreedom) July 23, 2019
Get the most-revealing celebrity conversations with the uInterview podcast!
Leave a comment