President Trump and Speaker Nancy Pelosi (D-Calif.) reached a two-year budget deal Monday that also suspends the debt ceiling through July 2021. This decision came in the wake of days of highly charged negotiations.
The agreement, spearheaded by Pelosi and Treasury Secretary Steven Mnuchin, sets the top-line numbers for overall defense and non-defense spending for fiscal 2020 and 2021.
“I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy — on a two-year Budget and Debt Ceiling, with no poison pills,” Trump tweeted.
It’s a significant win for Mnuchin and Pelosi, as well as for Kentucky Republican McConnell, who took a back seat in the talks but had been challenging the White House to accept a two-year deal.
The deal will most likely face considerable pushback from conservatives and budget hawks, who were already lining up to urge Trump to reject the agreement before it was formally announced Monday.
The Committee for a Responsible Federal Budget (CRFB), a fiscally conservative advocacy group, said before the deal was announced that it had the potential to be “the worst budget agreement in our nation’s history.”
“If this deal passes, President Trump will have increased discretionary spending by as much as 22 percent over his first term and enshrine trillion-dollar deficits into law,” said CRFB President Maya MacGuineas.
CRFB estimated that the deal could add as much as $2 trillion to deficits over the decade.
The agreed-upon package includes enough positives for both sides to claim victory, including a bump in defense spending — a top priority for Republicans — and the domestic priorities touted by Democrats.
“This was a real compromise in order to give another big victory to our Great Military and Vets!” Trump added in a follow-up tweet.
“A bipartisan agreement has been reached that will enhance our national security and invest in middle class priorities and well being of the American people,” Pelosi and New York Democrat Schumer said in a joint statement.
“The House will now move swiftly to bring the budget caps and debt ceiling agreement legislation to the floor, so that it can be sent to the president’s desk as soon as possible,” they added.