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Home / US / The emerging budget agreement is likely to involve little or no actual spending cuts while raising the debt ceiling for two years Spokeswoman for the House of Representatives, Nancy Pelosi (D-Calif.), Speaking on Wednesday, July 17, 2019, after a press conference on Capitol Hill with media representatives.

The emerging budget agreement is likely to involve little or no actual spending cuts while raising the debt ceiling for two years Spokeswoman for the House of Representatives, Nancy Pelosi (D-Calif.), Speaking on Wednesday, July 17, 2019, after a press conference on Capitol Hill with media representatives.



The White House and congressional negotiators, who are in a hurry to clarify the final details of a comprehensive budget and debt agreement, will probably not even see many, if any, actual spending cuts because the debt limit is two years raised, people familiar with the talks said.

The agreement appeared to be a retreat for White House officials who had demanded substantial spending cuts in exchange for a new budget agreement. However, the trial remained suspended while the negotiators waited late Sunday for President Trump's final approval.

The proposed agreement should extend the debt ceiling and set a new spending level for two years. long shutdown of the government earlier this year.

However, instead of the US $ 150 billion cuts recently demanded by Russell Vought, the incumbent budget director of the White House, the agreement would require a much smaller number of cuts. And these cuts are not expected to represent actual spending cuts, in part because most will occur in the coming years and are likely to be reversed by Congress at a later date. An exact number could not be determined.

The information remained fluid and subject to change, said the speakers, who spoke on condition of anonymity because they were not authorized to disclose details.

The budget agreement would increase spending by tens of billions of dollars over the next two years, a marked reversal of the White House budget bill a few months ago, aimed at cutting spending on many agencies from October.

Like some White House officials Withdrawn by demands for spending cuts, they focused on preventing an attempt by the Democrats to restrict funding for a wall along the Mexican border.

As part of the two-year increase in military and spending deals, the White House officials were trying to persuade House Speaker Nancy Pelosi (D-Calif.) To withdraw from certain policies that Democrats hoped for to account for future must-pass expenses. One point of contention was the authority of the government to transfer money between household accounts to finance the construction of the wall.

Democrats have been struggling to override, reduce or eliminate the White House's ability to transfer money in this way, but White House officials have been pressing hard for the flexibility to do so. The exact solution was uncertain.

A key element of the budget agreement would be the lifting of the debt ceiling for two years to forestall catastrophic default, which many budget experts consider. Treasury Secretary Steven Mnuchin has warned that his agency could run out of money at the beginning of September unless the debt ceiling is raised. As the talks went smoothly, it is possible that the negotiators might try to change the debt limit schedule based on Trump's contributions.

Mnuchin has worked as chief negotiator for Pelosi, trying to sign a contract for more than a week, but several other White House officials have been trying to push for more spending cuts.

The agreement is expected to set new total expenditure for the 2020 and 2021 fiscal years and reduce the likelihood of a new government shutdown by providing the legislators with a roadmap for drawing up new spending plans before the current 1 October deadline. The agreement on new spending levels also avoids burdensome budget caps that would otherwise automatically set in with an Obama-era deal, and indiscriminately eliminates $ 126 billion from the domestic and Pentagon budgets.

The debt limit and budget ceilings had long been sought by the legislators of both parties, but the achievement of these limits had been uncertain. The negotiations between Mnuchin and Speaker of the House Pelosi have taken place directly in recent days, but Trump's final approval was required and remained uncertain.

If the deal is completed, Pelosi would have less than a week to adjourn before the House opens negotiations in the House of Representatives for a scheduled six-week summer break on Friday. The Senate will convene another week after the house's departure, and will be able to use the extra time to review the deal and send it to Trump for signature.


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