News

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.

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.

 

Pablo Mena

Writer for upolitics.com. NY Giants and Rangers fan. Film and TV enthusiast (especially Harry Potter and The Office) and lover of foreign languages and cultures.

Recent Posts

Trump’s Vow For Retribution At Justice Department Alarms Ethics Experts

In a campaign-style speech at the Department of Justice on Friday, President Donald Trump outlined his vision…

18 mins ago

VIDEO: Trump Signs Executive Order Calling For Elimination Of Department Of Education Surrounded By School Kids At Desks

https://www.youtube.com/shorts/aWpTcpG89L4 President Donald Trump signed an executive order to begin dismantling the Department of Education…

2 hours ago

Democratic Party Approval Hits Record Lows, But Polls Suggest Gains In 2026 Midterms

The Democratic Party's favorable ratings have fallen to record lows, according to two new national polls by…

3 hours ago

Social Security System ‘May Collapse’ In ’30 To 90 Days’ From DOGE Cuts, Warns Ex-Commissioner Martin O’Malley: ‘People Should Start Saving Now!’

The former head of the Social Security Administration (SSA) and governor of Maryland from 2007…

24 hours ago

After Trump Administration Cuts $1 Billion In Fresh Food Programs, GOP Sen. Deb Fischer Recommends ‘Canned Food’ As Alternative

The U.S. Department of Agriculture has canceled two programs that funded $1 billion to give…

1 day ago

Rep. Alexandria Ocasio-Cortez Tops Poll As Best Representative Of Democratic Party’s Values

In the latest CNN poll, Rep. Alexandria Ocasio-Cortez (D-New York) was found to best represent the "core values"…

1 day ago