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.”

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.