White House and Lawmakers Agree to Two-Year Budget Deal - July 23, 2019
By Eric Katz, Government Executive
President Trump announced late Monday the administration had reached an agreement with House and Senate leaders to lift spending caps and raise the debt ceiling with a two-year budget deal.
The deal would raise discretionary spending at non-defense agencies by $27 billion in fiscal 2020 and boost defense spending by $22 billion, according to multiple reports. Compared to fiscal 2019, domestic agencies would see an increase of $10 billion more than their defense counterparts. Compared to the spending caps that would have been in place absent a deal, defense spending is set to increase by $20 billion more than the boost to non-defense. The funding caps, which first went into effect in 2013 as a result of the 2011 Budget Control Act, will no longer apply going forward.
The deal avoids $125 billion in automatic spending cuts that would have taken place in fiscal 2020 across both defense and non-defense agencies had Congress not acted. Lawmakers agreed to offset about $77 billion through increases to customs user fees and extending automatic cuts to mandatory spending.