Trump, Democrats reach agreement on budget

Under bipartisan agreement, federal spending will increase by billions of dollars.

Arutz Sheva Staff ,

Donald Trump
Donald Trump

US President Donald Trump said on Monday that a "compromise" bipartisan budget agreement has been reached that will boost federal spending by billions of dollars and suspend the debt limit beyond the next presidential election, AFP reports.

Trump tweeted that the deal was struck between the White House and the top Democratic and Republican leaders in both chambers of Congress.

"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. This was a real compromise in order to give another big victory to our Great Military and Vets!" he wrote.

The agreement raises the discretionary spending caps for fiscal years 2020 and 2021, pairing it with a suspension of the statutory debt ceiling until the end of July 2021, nearly nine months after the 2020 election, according to AFP.

The agreement has faced resistance from conservative Republicans who oppose adding hundreds of billions of dollars in additional spending to the US debt.

Democratic leaders hailed the agreement as a victory for securing robust funding for critical domestic priorities, describing the deal as the largest-ever increase in base funding above the so-called sequestration levels set forth in a 2011 law.

"With this agreement, we strive to avoid another government shutdown, which is so harmful to meeting the needs of the American people and honoring the work of our public employees," House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said in a joint statement.

Pelosi had been negotiating the deal with Treasury Secretary Steve Mnuchin, and the pair were racing against the clock to wrap it up by Friday, when the House of Representatives goes on a six-week recess.