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US budget: Funding deal reached to avert shutdown US budget: No cash for Trump's wall in budget deal
(about 9 hours later)
Congressional negotiators have reached an agreement on a spending bill to keep the US government running until 30 September. Congress has struck a budget deal to avert a government shutdown, but it allocates no cash for President Donald Trump's proposed US-Mexico border wall.
The bipartisan deal boosts military spending but does not include funding for President Donald Trump's proposed wall on the Mexico border. The $1tr (£770bn) agreement to keep the US government running until 30 September was reached on Sunday night.
The reported $1 trillion deal (£770bn) needs to be approved by lawmakers. While there was no money for a wall, Republicans managed to secure $1.5bn in spending on border security.
On Friday Congress approved a stop-gap spending bill that averted a government shutdown at midnight on that day. Lawmakers are expected to vote on the package in the coming days. Full details are yet to be made public.
On Friday Congress approved a stop-gap spending bill that averted a government shutdown at midnight Saturday.
That gave Congress one more week to work out federal spending for the last five months of the fiscal year.That gave Congress one more week to work out federal spending for the last five months of the fiscal year.
Lawmakers are expected to vote on the package in the coming days. The failure to act would have closed national parks and monuments and left hundreds of thousands of government employees without pay.
The failure to act would have closed national parks and monuments and laid off federal employees.
The last shutdown, in 2013, lasted for 17 days.The last shutdown, in 2013, lasted for 17 days.
What is at stake? What about Trump's wall?
Full details of the agreement on a spending bill are yet to be made public. White House demands for the spending bill to include a down payment on a barrier along the southern border have come to naught.
But US media reports that it gives President Donald Trump a $12.5bn increase in defence spending and another $1.5bn for border security. The $1.5bn for border security in the new budget comes with key caveats.
White House proposals to cut popular programmes - such as funding medical research and community development grants - were rejected. The Trump administration can only spend the money on repairs to existing fencing, infrastructure and technology, according to US media.
Democrats also fended off potential cuts to women's healthcare provider Planned Parenthood. Nor has the administration succeeded in its plan to eliminate funding for so-called US sanctuary cities, which shelter undocumented immigrants.
New York City will reportedly receive a $68m boost for local law enforcement, in recompense for the cost of protecting President Trump and his family. However, Mr Trump insists he will still get money for his key campaign promise in a new spending bill this autumn.
The deal also gives coal miners $1.3bn in health benefits, which will be funded by a rise in customs fees. The Republican president told a rally in Pennsylvania on Saturday night: "We'll build the wall, people, don't even worry about it."
Why couldn't Republicans just force it through? What are the wins for Democrats?
There were a number of key disputes during tense negotiations, and Republicans - who control the Congress, Senate and White House - were forced to make concessions. Democrats say they torpedoed from the spending bill 160 policy measures, known as riders, that they labelled "poison pills".
Democrats had leverage in the talks because their votes will be needed to pass the bill. According to reports, none of Mr Trump's calls for $18bn in non-defence cuts are included.
The Senate requires 60 votes to pass legislation, so the 52 Republicans there will need support from at least eight Democrats. Democrats also fended off potential cuts to Planned Parenthood, a family-planning group abhorred by social conservatives because it provides abortions.
President Trump earlier had to yield to Democratic demands not to include funding for the proposed wall on the US-Mexico border in the spending bill. The 1,600-page spending bill reportedly gives retired coal miners $1.3bn in health benefits, a priority of two Democratic senators.
Another concession was over Obamacare, formally known as the Affordable Care Act. Democrats have also secured $295m to help Puerto Rico continue making payments to the Medicaid health insurance programme for the poor, and $100m to combat opioid addiction.
Mr Trump made scrapping it a key campaign pledge, but divisions among Republicans have so far prevented attempts to get his own health plan through Congress. And New York Democrats secured $61m of funding to reimburse law enforcement agencies for the cost of protecting Mr Trump when he travels to his residences in Florida and New York.
In a statement on Sunday evening, Senate Democratic leader Chuck Schumer called the deal "a good agreement for the American people" that "takes the threat of a government shutdown off the table". Furthermore, the deal increases funding for the National Institutes of Health, despite the Trump administration's calls to reduce the medical research agency's budget.
He said the measure would increase investment in medical research, education, and infrastructure. Last week, Democrats also wrung from the White House a concession that the bill would not target subsidies paid to insurers to keep Obamacare costs down for low-income patients.
"Reports that the package makes a major down payment towards the president's security priorities are encouraging," said John Czwartacki, a spokesman for the White House Office of Management and Budget. Democratic Senate leader Chuck Schumer said in a statement. "The bill ensures taxpayer dollars aren't used to fund an ineffective border wall, excludes poison-pill riders, and increases investments in programs that the middle-class relies on."
Why are the wins for Trump?
President Trump has won $12.5bn in extra funding for defence spending.
However, that falls short of the $30bn sought by his budget blueprint.
The spending package would save him and congressional Republicans the embarrassment of presiding over a government shutdown.
"We couldn't be more pleased," US Vice-President Mike Pence said in an interview on CBS This Morning.
But Jim Jordan, chairman of the House of Representatives Freedom Caucus, said he and fellow hardline conservatives were "disappointed".
Republicans control the Congress, Senate and White House, but Democratic votes are still needed to pass the bill.