{"id":45639,"date":"2019-07-22T22:59:55","date_gmt":"2019-07-22T22:59:55","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2019\/07\/22\/deal-sealed-on-federal-budget-ensuring-no-shutdown-default\/"},"modified":"2026-08-08T08:01:36","modified_gmt":"2026-08-08T08:01:36","slug":"deal-sealed-on-federal-budget-ensuring-no-shutdown-default","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/congress\/2019\/07\/22\/deal-sealed-on-federal-budget-ensuring-no-shutdown-default\/","title":{"rendered":"Deal sealed on federal budget, ensuring no shutdown, default"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 President Donald Trump and congressional leaders announced late Monday they had struck a critical <a href=\"https:\/\/www.defensenews.com\/congress\/2019\/07\/22\/near-final-budget-deal-could-prevent-government-shutdown-stabilize-military-funding\/\" target=_blank>debt and budget agreement<\/a>. The deal amounts to an against-the-odds victory for Washington pragmatists seeking to avoid politically dangerous tumult over the possibility of a government shutdown or first-ever federal default.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The deal, announced by Trump on Twitter and in a statement by Democratic House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer, will restore the government&#8217;s ability to borrow to pay its bills past next year&#8217;s elections and build upon recent large budget gains for both the Pentagon and domestic agencies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;I am pleased to announce that a deal has been struck,&#8221; Trump tweeted, saying there will be no &#8220;poison pills&#8221; added to follow-up legislation. &#8220;This was a real compromise in order to give another big victory to our Great Military and Vets!&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Pelosi and Schumer said the deal &#8220;will enhance our national security and invest in middle class priorities that advance the health, financial security and well-being of the American people.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They claimed credit for winning more than $100 billion worth of spending increases for domestic priorities since Trump took office.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agreement is on a broad outline for $1.37 trillion in agency spending next year and slightly more in fiscal 2021. It would mean a win for lawmakers eager to return Washington to a more predictable path amid political turmoil and polarization, defense hawks determined to cement big military increases and Democrats seeking to protect domestic programs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nobody can claim a big win \u2014 though they did \u2014 but both sides view it as better than <a href=\"https:\/\/www.defensenews.com\/congress\/2019\/06\/27\/us-senate-passes-its-defense-policy-bill-86-8-setting-up-fight-with-house\/\" target=\"_blank\">a protracted battle this fall<\/a> that probably wouldn\u2019t end up much differently.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/news\/pentagon-congress\/2019\/07\/12\/military-budget-showdown-set-as-democrats-advance-authorization-bill-over-gop-objections\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/5573008.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Military budget showdown set as Democrats advance authorization bill over GOP objections<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The $733 billion military policy bill includes a host of progressive priorities, including limits on the nuclear weapons arsenal and new rules for transgender recruits.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">However, it also comes as budget deficits are rising to $1 trillion levels \u2014 requiring the government to borrow a quarter for every dollar the government spends \u2014 despite the thriving economy and three rounds of annual Trump budget proposals promising to crack down on the domestic programs that Pelosi is successfully defending now. It ignores warnings from deficit and debt scolds who say the nation&#8217;s fiscal future is unsustainable and will eventually drag down the economy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;This agreement is a total abdication of fiscal responsibility by Congress and the president,&#8221; said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a Washington advocacy group. &#8220;It may end up being the worst budget agreement in our nation&#8217;s history, proposed at a time when our fiscal conditions are already precarious.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The aides who spoke Monday about the emerging deal did so on the condition of anonymity because they were not authorized to speak on the record before a deal was final.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"\/wp-content\/uploads\/2026\/08\/AP19203542617979.jpg.jpg\" alt=\"Speaker of the House Nancy Pelosi, D-Calif., addresses the NAACP convention, Monday, July 22, 2019, in Detroit.\" class=\"wp-image-88186\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP19203542617979.jpg.jpg 1200w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP19203542617979.jpg.jpg?resize=300,200 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP19203542617979.jpg.jpg?resize=768,512 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP19203542617979.jpg.jpg?resize=1024,683 1024w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">Speaker of the House Nancy Pelosi, D-Calif., addresses the NAACP convention, Monday, July 22, 2019, in Detroit. (Carlos Osorio\/AP)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A push by the White House and House GOP forces for new offsetting spending cuts was largely jettisoned, though Pelosi, D-Calif., gave assurances about not seeking to use the follow-up spending bills as vehicles for aggressively liberal policy initiatives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fights over <a href=\"https:\/\/www.militarytimes.com\/news\/pentagon-congress\/2019\/07\/14\/trump-asks-supreme-court-to-unfreeze-defense-department-money-for-border-wall\/\" target=_blank>Trump\u2019s U.S.-Mexico border wall<\/a>, other <a href=\"https:\/\/www.armytimes.com\/news\/your-army\/2019\/07\/21\/protest-decries-plan-to-detain-migrant-kids-at-armys-fort-sill\/\" target=_blank>immigration-related issues<\/a> and spending priorities will be rejoined on follow-up spending bills that are likely to produce much the same result as current law. The House has passed most of its bills, using far higher levels for domestic spending. Senate measures will follow this fall, with levels reflecting the accord.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At issue are two separate but pressing items on Washington&#8217;s must-do agenda: increasing the debt limit to avert a first-ever default on U.S. payments and acting to set overall spending limits and prevent automatic spending cuts from hitting the Pentagon and domestic agencies in January.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The threat of the automatic cuts represents the last gasp of a failed 2011 budget and debt pact between former President Barack Obama and then-Speaker John Boehner, R-Ohio, that promised future spending and deficit cuts to cover a $2 trillion increase in the debt. But a bipartisan deficit &#8220;supercommittee&#8221; failed to deliver, and lawmakers were unwilling to live with the follow-up cuts to defense and domestic accounts. This is the fourth deal since 2013 to reverse those cuts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Prospects for an agreement, a months-long priority of top Senate Republican Mitch McConnell, R-Ky., became far brighter when Pelosi returned to Washington this month and aggressively pursued the pact with Treasury Secretary Steven Mnuchin , who was anointed lead negotiator instead of more conservative options like acting White House Chief of Staff Mick Mulvaney or hardline Budget Director Russell Vought.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mnuchin was eager to avert a crisis over the government&#8217;s debt limit. There&#8217;s some risk of a first-ever U.S. default in September, and that has added urgency to the negotiations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The pact would defuse the debt limit issue for two years, meaning that Trump or his Democratic successor would not have to confront the politically difficult issue until well into 2021.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Details on spending levels have been kept under wraps so far, but the complicated accounting under Washington&#8217;s arcane budget rules gives each side a way to paint the numbers favorably. Generally speaking, the deal would lock in place big increases won by both sides in a 2018 pact driven by the demands of GOP defense hawks and award future increases consistent with low inflation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Pelosi was positioned to claim rough parity between increases for defense and nondefense programs, but the veteran negotiator retreated on her push for a special carve-out for a newly reauthorized program for veterans utilizing private sector health care providers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the end, domestic programs would on average receive 4 percent increases in the first year of the pact, with much of those gains eaten up by veterans increases and an unavoidable surge for the U.S. Census. Defense would jump to $738 billion next year, a 3 percent hike.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Trump retains flexibility to transfer money between accounts, which raises the possibility of attempted transfers for building border barriers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The results are likely to displease many on both sides, especially Washington&#8217;s weakening deficit hawks and liberals demanding greater spending for progressive priorities. But Pelosi and McConnell have longtime histories with the Capitol&#8217;s appropriations process and have forged a powerful alliance to deliver prior spending and debt deals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The measure would first advance through the House this week and win the Senate\u2019s endorsement next week before Congress takes its annual August recess.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>The deal amounts to an against-the-odds victory for Washington pragmatists seeking to avoid politically dangerous tumult over the possibility of a government shutdown or first-ever federal default.<\/p>\n","protected":false},"author":7,"featured_media":88184,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":8,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[8,160,36],"tags":[],"coauthors":[3154],"class_list":["post-45639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-congress","category-daily-news-roundup","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"3AXH7ZTEPRA2LAUDEPS5WOTVM4","arc_canonical_url":"\/news\/pentagon-congress\/2019\/07\/22\/deal-sealed-on-federal-budget-ensuring-no-shutdown-default\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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