Politics: Emerging budget deal likely to include few or no actual spending cuts, while lifting debt limit for two years - PressFrom - US

PoliticsEmerging budget deal likely to include few or no actual spending cuts, while lifting debt limit for two years

06:15  22 july  2019
06:15  22 july  2019 Source:   washingtonpost.com

Mnuchin says debt ceiling deal 'close'

Mnuchin says debt ceiling deal 'close' Treasury Secretary Steven Mnuchin on Monday expressed optimism that Congress will agree to a deal that includes raising the debt ceiling in the coming weeks. Mnuchin addressed reporters from the White House briefing room, where he said he's had "productive talks" with Speaker Nancy Pelosi (D-Calif.), and that Democrats, Republicans and the White House are all in agreement that packaging a budget deal and a deb ceiling increase "is the first choice." "I think we're very close to a deal. But as you know these deals are complicated," Mnuchin said.

The Congressional Budget Office said on Wednesday that the United States is expected to bump up against its borrowing limit a month earlier than previously expected, a function of last year ’s .5 trillion tax cut , which is resulting in less revenue for the Treasury Department.

By instituting deep budget cuts (20% or more within four years ), the nation reduced its budget deficit to zero Despite the frequency of practice, most nations face large and growing debts . It is likely that this is Defaulting on the debt , which can including going bankrupt and or restructuring payments to

Emerging budget deal likely to include few or no actual spending cuts, while lifting debt limit for two years© Al Drago/Bloomberg U.S. House Speaker Nancy Pelosi, a Democrat from California, speaks with members of the media following a news conference on Capitol Hill in Washington, D.C., U.S. on Wednesday, July 17, 2019. Pelosi said she still wants a deal this week on the U.S. debt limit to give the House time to pass the measure before Congress's August recess. Photographer: Al Drago/Bloomberg

White House and congressional negotiators rushing to hammer out the final details of a sweeping budget and debt deal are unlikely to include many — if any — actual spending cuts, even as the debt limit is lifted for two years, people familiar with the talks said.

Pelosi, Mnuchin Speak Again on Debt Limit as Time Runs Short

Pelosi, Mnuchin Speak Again on Debt Limit as Time Runs Short House Speaker Nancy Pelosi said she sees “forward motion” after yet more talks with Treasury Secretary Steven Mnuchin to negotiate higher spending levels in a budget deal that congressional leaders want to attach to a bill raising the debt limit before Congress’s August recess. “We have a clear idea of what we want to agree to and that’s progress,” Pelosi said Tuesday evening. She spoke with Mnuchin twice during the day. Recent phone calls between Pelosi and Mnuchin have focused on whether a broader budget deal will be possible before the House is scheduled to leave July 26 for a six-week recess.

The U.S. budget is unsustainable. Spending and debt are growing to catastrophic levels. With the national debt at trillion as deficits grow rapidly, the Lawmakers should put the U.S. budget on a path toward balance before raising the debt limit , only authorizing such borrowing as is necessary to

Tax cuts , spending increases and higher interest rates could make it harder to respond to future recessions and deal with other needs. Annual interest payments on the national debt are expected to triple over the next decade, according to the Congressional Budget Office.

The agreement appeared likely to mark a retreat for White House officials who had demanded major spending cuts in exchange for a new budget deal. But the process remained in limbo while negotiators awaited final approval late Sunday from President Trump.

The pending deal would seek to extend the debt ceiling and set new spending levels for two years, ratcheting back the budget brinkmanship that led to a record-long government shutdown earlier this year.

Subscribe to the Post Most newsletter: Today’s most popular stories on The Washington Post

But instead of the $150 billion in new spending cuts recently demanded by White House acting budget director Russell Vought, the agreement would include a significantly lower amount of reductions. And those reductions aren’t expected to represent actual spending cuts, in part because most would take place in future years and likely be reversed by Congress at a later date. A precise figure couldn’t be learned.

Mnuchin Says Deal on Budget, Raising Debt Limit ‘Very Close’

Mnuchin Says Deal on Budget, Raising Debt Limit ‘Very Close’ Treasury Secretary Steven Mnuchin said the Trump administration and congressional Democrats have agreed on spending levels for a budget deal that could clear the way for raising the federal debt limit before Congress leaves town. 

She simultaneously hailed the budget deal while proclaiming she would vote against it. In a letter to colleagues, she explained her opposition to The spotlight was on House Democrats in part because it had become apparent that Republican leaders would most likely lack the votes to push the budget

The agreement would raise spending by billion over two years , not including a billion increase included in an emergency war fund. Those increases would be offset by cuts in spending on Medicare and Social Security disability benefits, as well as savings or revenue from an array of other

Details remained fluid and subject to change, according to the people describing the talks, who spoke on the condition of anonymity because they were not authorized to reveal details.

In practical terms, the budget agreement would increase spending by tens of billions of dollars in the next two years, a stark reversal from the White House’s budget request several months ago that sought to slash spending at many agencies starting in October.

As some White House officials backed away from demands for spending cuts, their focus shifted to trying to block an attempt by Democrats to restrict funding for a wall along the Mexico border.

Debt Limit Deal Hinges on Pelosi Review of Spending Cut Options

Debt Limit Deal Hinges on Pelosi Review of Spending Cut Options The White House late Thursday sent House Speaker Nancy Pelosi a proposed list of spending cuts to give her options for a budget agreement that she wants to include in a deal to raise the debt ceiling, according to two people familiar with the proposal. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); The Trump administration is giving Democrats a menu of savings equaling at least $574 billion to offset the costs of a two-year budget cap agreement.

High debt levels are problematic. As CBO explained a few years ago 1. A constitutional amendment to limit spending . The inability of lawmakers to constrain their own spending makes 2 . Meaningful budget reforms that limit lawmakers’ tendency to spend . In the absence of constitutional rules While economists disagree when it comes to fiscal policy, a consensus has emerged that spending -based

The United States debt ceiling or debt limit is a legislative limit on the amount of national debt that can be incurred by the U.S. Treasury, thus limiting how much money the federal government may borrow.

As part of the deal to raise military and spending levels for two years, White House officials were attempting to convince Speaker Nancy Pelosi (D-Calif.) to back off on certain policies Democrats hoped to include in future must-pass spending bills. One point of contention involved the administration’s authority to transfer money between budget accounts to finance construction of a wall along the Mexico border.

Trump says will not use U.S. debt ceiling to negotiate spending deal with Congress

Trump says will not use U.S. debt ceiling to negotiate spending deal with Congress Trump says will not use U.S. debt ceiling to negotiate spending deal with Congress

The deal includes more spending for both for the 2018 and 2019 fiscal years . The deal primarily affects discretionary spending , which makes up about one-third of the federal budget and does not include entitlements like Social Security and Medicare.

A budget deal to raise the debt limit should ideally focus on finding ways to restrain or even (gasp!) reduce spending , with an eye toward heading off the need for debt limit showdowns in the future. The continual last-minute, last-ditch nature of these deals virtually ensures that they will be bad, and that

Democrats have fought to limit or eliminate the White House’s ability to transfer money in this way, but White House officials have pushed hard to retain the flexibility to do so. The exact resolution was uncertain.

A central focus of the budget agreement would be the suspension of the debt ceiling for two years, forestalling what many budget experts believe would be a catastrophic default. Treasury Secretary Steven Mnuchin has warned that his agency could run out of money by early September if the debt ceiling isn’t raised by then. Because talks remained fluid, it’s possible negotiators could seek to change the debt limit timeline based on input from Trump.

Mnuchin has served as the primary negotiator with Pelosi and has tried to secure a deal for more than a week, but some other White House officials have tried to push for more spending cuts.

The agreement is expected to set new overall spending levels for the 2020 and 2021 fiscal years, reducing chances of another government shutdown by giving lawmakers a road map to write new spending bills before the current ones expire Oct. 1. Agreeing on new spending levels also avoids onerous budget caps that would otherwise snap into place automatically under an Obama-era deal, and indiscriminately slash $126 billion from domestic and Pentagon budgets.

The agreements on the debt limit and the budget caps had been long sought by lawmakers of both parties, but achieving them had been uncertain. Negotiations occurred directly between Mnuchin and House Speaker Pelosi in recent days, but final sign-off was needed from Trump and remained uncertain.

If the deal is finalized, Pelosi would have less than a week to muscle it through the House before the chamber adjourns for a scheduled six-week summer recess on Friday. The Senate will be in session for an additional week after the House departs and would be able to use the additional time to consider the deal and send it to Trump to sign.

Conservatives balk at proposed debt limit, budget deal.
House Republicans won’t vote for a proposed bipartisan deal to suspend the nation’s borrowing limit until 2021 and raise spending caps by $320 billion over two years, a top GOP lawmaker said Monday. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); “I have communicated consistently there will be a large number of conservatives in the House who will not be able to vote for the deal, if these are indeed the terms,” Rep. Mike Johnson, R-La.

—   Share news in the SOC. Networks

Topical videos:

usr: 10
This is interesting!