Trump, Congressional Leaders Reach Sweeping Budget Agreement
White House and congressional leaders on Monday clinched a sweeping fiscal deal to lift the nation’s debt limit and dramatically raise federal spending levels.
The agreement, negotiated by Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin, is expected to clear both chambers before the August recess — alleviating pressure ahead of a slew of high-stakes fiscal deadlines this fall.
Trump announced the agreement by tweet, delivering an endorsement that could help convince reluctant Republicans in Congress to swallow the massive spending hikes.
“This was a real compromise in order to give another big victory to our Great Military and Vets!” Trump tweeted.
The agreement would eliminate the threat of dual fiscal crises that have long been hanging over Washington — an unprecedented default on U.S. debt and massive across-the-board spending cuts that could paralyze key agencies.
Under the deal, the Pentagon’s budget would increase to $738 billion next fiscal year — a $22 billion increase that is far short of Trump’s demands but above what House Democrats had wanted to spend, according to multiple sources.
It would also increase nondefense spending to $632 billion — a $27 billion increase that marks a victory for Democrats, though the money will also have to cover extra Census costs as well as a shortfall in Veterans Affairs funding.
