Two Year Agreement
Maya MacGuineas, chairwoman of the Responsible Federal Budget Committee, said Thursday that the agreement presented “a shameful period of fiscal recklessness in Washington, unprecedented in the context of our current financial state.” It was only after the 35-day ceasefire this year that the legislature released a 1.9% pay increase for civilian employees in 2019. The agencies did not begin implementing the increase in 2019 until April, retroactive to January 1. The Bipartisan Budget Act of 2019 increases defence and domestic spending limits by about $100 billion over the next two years. In addition, the debt ceiling will be extended until July 31, 2021 – additional funding is provided for Health Veterans and other initiatives. The recent budget agreement also avoids the threat of automatic reductions in sequestration spending that would have taken place at the beginning of the new fiscal year, under the 2011 Budget Control Act. Maya MacGuineas, chair of the Responsible Federal Budget Committee, said: “In the way we understand it, this agreement is a complete abandonment of the budgetary responsibility of Congress and the President. This is perhaps the worst budgetary agreement in our country`s history, proposed at a time when our budgetary conditions are already precarious. The agreement would raise the debt ceiling after the 2020 election and set $1.3 trillion for defence and domestic spending over the next two years. Prominent members of Congress agreed with the White House on a two-year budget deal. Nicholas Kamm/AFP/Getty Images hides the caption: “I don`t think the two-year crisis that has occurred is a terribly viable way to approach this subject,” he added. Congress never accepted the budget decision.
The compensatory payments included in the 2019 budget agreement are relatively small and expand the power to impose tariffs for a further 10 years. “The president, congressional leaders and the leadership of the appropriation commissions will work together to reach a bipartisan, bipartisan agreement on the orderly and timely review of GJ 2020 budget plans to avoid a government ceasefire and a 12-ball omnibus,” Schumer and Pelosi wrote in a summary of the agreement. Only 65 Republicans joined the Democratic majority in the 284-149 vote, 132 Republicans voted against the bill, despite support from President Trump and pressure from outside groups, including the Chamber of Commerce, to avoid a potentially catastrophic government default. Democrats had enough numbers to pass the deal without Republican support, despite concerns from some liberals about their increased military spending over the next two years. Only 16 of them voted “no.” The deal was reached after weeks of intense negotiations between Trump`s White House and House spokeswoman Nancy Pelosi, D-Calif., who have even saved money on several other fronts with Democrats in Congress, and more and more have called for his impeachment. The deal is a rare example of bipartisan legislation in the Trump era and is one of the few major votes Congress will win this year. The new law suspends the debt ceiling until July 2021, eliminates the threat of insolvency during the 2020 elections, and increases domestic and military spending by more than $320 billion over the next two fiscal years over current legislation. Despite conservative complaints that it would fuel the country`s failing debt, President Trump on Friday signed a two-year comprehensive budget deal that boosts spending and eliminates the risk of debt default until after the 2020 election.