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US Federal Budget would increase spending by $320 billion

If passed by Congress and signed by President Trump, the deal would stop a potential debt default this fall and avoid automatic spending cuts next year

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US Federal budget increases

1 min read Last Updated : Jul 24 2019 | 2:46 AM IST

White House and congressional negotiators reached accord on a two-year Budget on Monday that would raise spending by $320 billion over existing caps and allow the government to keep borrowing, most likely averting a fiscal crisis but splashing still more red ink on an already surging deficit.

If passed by Congress and signed by President Trump, the deal would stop a potential debt default this fall and avoid automatic spending cuts next year. The agreement would also bring clarity about government spending over the rest of Trump’s term, though Congress must still fill in the details, program by program.

“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,” Trump announced on Twitter. “This was a real compromise in order to give another big victory to our Great Military and Vets!”

Topics : US Budget spending cut in US budget US budget deal