The Budget Deal To End All Obama Budget Deals Is Here. Read The Details.

27 Oct 2015 | Author: | No comments yet »

Congressional Republicans, Democrats, Obama reach accord on two-year budget deal.

The White House and congressional leaders reached a two-year budget deal overnight that would lift mandatory sequestration cuts on both defense and domestic spending and raise the federal debt ceiling, averting a fiscal standoff as the Republican-led U.S. Congressional leaders are throwing their collective weight behind a hard-won, two-year bipartisan budget plan aimed at heading off a looming government debt crisis and forestalling a government shutdown in December.House Speaker John Boehner (R-Ohio), who’ll wrap up his lengthy congressional career this week, has told reporters in recent days that he’s determined to “clean the barn up” before his successor takes his place. The pact, which would take these volatile issues off the table until after the 2016 presidential election, emerged in behind-the-scenes negotiations late Monday on Capitol Hill.

In practical terms, the Republican leader is referring to Congress’ lengthy to-do list – Boehner doesn’t want to leave lawmakers in an untenable position as he heads for the exits. A White House official said on Tuesday the compromise deal would protect Social Security and Medicare beneficiaries from cuts and urged members of Congress from both parties to pass it. “It’s a responsible agreement that is paid for in a balanced way by ensuring that hedge funds and private equity firms pay the taxes they owe and by cutting billions in wasteful spending,” the official said in a statement. The timing of the posting matters: its availability on Monday night will make it easier for House Republican leaders to set up a floor vote as early as tomorrow. As part of the deal, congressional leaders proposed to sell 58 million barrels of oil from U.S. emergency reserves over six years starting in fiscal 2018 to help pay for an end to mandatory spending cuts, according to a copy of the bill posted to a congressional website.

What immediately stands out in the deal is the negotiators’ ambition – this one package includes new federal spending levels through September 2017, a debt-ceiling increase through March 2017, $80 billion in sequestration relief that’s likely to help the economy and the Pentagon, and measures to help seniors facing Medicare Part B premium spikes. If successful, the agreement would mark a final act for Boehner to clear some politically divisive legislation as Ryan takes over as speaker – assuming a majority of the House votes to put him in the top job in an election set for Thursday.

The budget pact, in concert with a must-pass increase in the federal borrowing limit, would solve the thorniest issues awaiting Ryan, who is set to be elected speaker on Thursday. If approved, the deal would likely eliminate the possibility of any self-imposed crises, cliffs, or hostage standoffs between now and early 2017, which sounds awfully appealing to almost everyone. Paul Ryan’s election as his successor, expected Thursday Boehner had promised to clear away as much business as possible before handing his speaker’s gavel to Ryan, R-Wis. The newly-assembled budget plan would restore order to Washington and remove the threat of budget and debt chaos — a premier goal of congressional Republicans like Senate Majority Leader Mitch McConnell of Kentucky, a key architect of the pact.

Capitol Hill Democrats are likely to solidly support the agreement, although it gives greater budget relief to the Pentagon than it does domestic programs. Outlined for rank-and-file Republicans in a closed-door session Monday night, the budget relief would total $50 billion in the first year and $30 billion in the second year. “Let’s declare success,” House Majority Leader Kevin McCarthy told Republicans, according to Rep.

In this case, increases in the sequester spending caps, the New York Times reported, “would be offset by cuts in spending on Medicare and Social Security disability benefits, as well as savings or revenue from an array of other programs, including selling oil from the nation’s strategic petroleum reserves. The Medicare savings would come from cuts in payments to doctors and other health care providers.” As the day progresses, look for policymakers on the left to give these provisions a good, long look. A chief selling point for Republican leaders is that the alternative is chaos and a stand-alone debt limit increase that might be forced on Republicans. But conservatives in the conference who drove Boehner to resign were not ready to fall in line. “This is again just the umpteenth time that you have this big, big, huge deal that’ll last for two years and we were told nothing about it,” said Rep.

It’s far too soon to start laying odds, though if the deal falls apart, conditions in Congress are going to reach crisis levels again very, very soon. A lot of conservatives disliked the measure and many on the GOP’s right flank are already swinging against the new one, which would apply to the 2016-17 budget years. “I’m not excited about it at all,” Rep. Negotiators looked to address two other key issues as well: a shortfall looming next year in Social Security payments to the disabled and a large increase for many retirees in Medicare premiums and deductibles for doctors’ visits and other outpatient care.

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