The White House and Congress reached a budget deal consisting of $2.7 trillion in spending for Fiscal Years (FY) 2020 and 2021. The agreement would increase overall spending by around $50 billion for FY 2020.
The agreement would authorize spending levels around $320 billion more than limits set under the 2011 sequester, which established mandatory cuts. It would also suspend the debt ceiling until July 2021 – after the 2020 elections.
Savings of around $77 billion would be achieved through small spending reductions for Medicare after FY 2027 and fees collected by Customs and Border Protection (CBP), with both helping to offset the cost of the package. The Trump administration had originally sought $150 billion in spending offsets but faced opposition on that front from House Speaker Nancy Pelosi, D-Calif.
The agreement must still be passed by both houses of Congress and signed by President Donald Trump. Pelosi and Sen. Chuck Schumer, D-N.Y., both pledged to quickly bring the deal to a floor vote, and Senate Majority Leader Mitch McConnell, R-Ky., said he intends to hold a floor vote on the package before the August recess.
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