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| Tentative Federal Budget Would Raise Spending by $320 Billion | Tentative Federal Budget Would Raise Spending by $320 Billion |
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| WASHINGTON — White House officials and congressional lawmakers are nearing a deal that would boost government spending levels over the next two years and raise the federal borrowing limit. If passed by Congress and signed by President Trump, it would avert a default crisis this fall and avoid automatic spending cuts next year. | |
| The agreement would raise spending by $320 billion, compared to the strict spending levels established in the 2011 Budget Control Act and set to go into effect next year without legislative action, according to three people familiar with the negotiations who requested anonymity to discuss the unfinished deal. | The agreement would raise spending by $320 billion, compared to the strict spending levels established in the 2011 Budget Control Act and set to go into effect next year without legislative action, according to three people familiar with the negotiations who requested anonymity to discuss the unfinished deal. |
| The accord, which negotiators hope to enact before Congress leaves for its August recess, includes equal increases in domestic and military spending, a key demand of Speaker Nancy Pelosi’s, according to one person familiar with the talks. It would also include offsetting spending cuts of about $75 billion, far lower than the $150 billion that some White House officials initially demanded. | The accord, which negotiators hope to enact before Congress leaves for its August recess, includes equal increases in domestic and military spending, a key demand of Speaker Nancy Pelosi’s, according to one person familiar with the talks. It would also include offsetting spending cuts of about $75 billion, far lower than the $150 billion that some White House officials initially demanded. |
| The deal would lift the debt ceiling high enough to allow the government to keep borrowing for two more years, punting the next showdown past the 2020 elections. | The deal would lift the debt ceiling high enough to allow the government to keep borrowing for two more years, punting the next showdown past the 2020 elections. |
| People familiar with the negotiations stressed that the talks were continuing, but all sides have strong incentives to come together quickly. Without action, Congress will either have to postpone departure for its monthlong August recess or rush back early to finish the deal before the government runs out of money, which could be as early as September. | People familiar with the negotiations stressed that the talks were continuing, but all sides have strong incentives to come together quickly. Without action, Congress will either have to postpone departure for its monthlong August recess or rush back early to finish the deal before the government runs out of money, which could be as early as September. |
| At the White House on Monday Mr. Trump said, “we are having very good talks” on the budget and the debt limit. He said he was pleased with additional investment in the military. | At the White House on Monday Mr. Trump said, “we are having very good talks” on the budget and the debt limit. He said he was pleased with additional investment in the military. |
| Ms. Pelosi and Treasury Secretary Steven Mnuchin, who have led the negotiations in private phone calls over the last week, will have to sell a deal to their parties ahead of an anticipated House vote this week, before that chamber leaves on Friday. The Senate is scheduled to leave for its recess next week. | Ms. Pelosi and Treasury Secretary Steven Mnuchin, who have led the negotiations in private phone calls over the last week, will have to sell a deal to their parties ahead of an anticipated House vote this week, before that chamber leaves on Friday. The Senate is scheduled to leave for its recess next week. |
| In her caucus, Ms. Pelosi must wrangle votes from both her fiscal hawks and liberal members opposed to increased military spending. Mr. Mnuchin must secure the president’s signature and wave off critics of government spending like Mick Mulvaney, the acting White House chief of staff, and Russell T. Vought, the acting head of the Office of Management and Budget. | In her caucus, Ms. Pelosi must wrangle votes from both her fiscal hawks and liberal members opposed to increased military spending. Mr. Mnuchin must secure the president’s signature and wave off critics of government spending like Mick Mulvaney, the acting White House chief of staff, and Russell T. Vought, the acting head of the Office of Management and Budget. |
| Some Republican lawmakers and officials within the administration want to reject any budget that is not fully offset by spending cuts or that does not carry a promise from Democrats that they would drop liberal policy changes from future spending bills. | Some Republican lawmakers and officials within the administration want to reject any budget that is not fully offset by spending cuts or that does not carry a promise from Democrats that they would drop liberal policy changes from future spending bills. |
| But the threat of an economically disastrous default on the nation’s debt, coupled with widespread desire to avoid automatic cuts to military and domestic programs, may be enough for the proposed measure to become law. | But the threat of an economically disastrous default on the nation’s debt, coupled with widespread desire to avoid automatic cuts to military and domestic programs, may be enough for the proposed measure to become law. |
| “I can’t imagine anybody ever even thinking of using the debt ceiling as a negotiating wedge,” Mr. Trump said on Friday. “We can never play with it.” | “I can’t imagine anybody ever even thinking of using the debt ceiling as a negotiating wedge,” Mr. Trump said on Friday. “We can never play with it.” |
| Mr. Trump criticized the Republican Party in 2013 for agreeing to lift the debt ceiling, and Mr. Mulvaney and his allies in the House used a looming debt default in 2011 to force passage of the Budget Control Act, which set the spending caps that the new deal would once again lift. | Mr. Trump criticized the Republican Party in 2013 for agreeing to lift the debt ceiling, and Mr. Mulvaney and his allies in the House used a looming debt default in 2011 to force passage of the Budget Control Act, which set the spending caps that the new deal would once again lift. |
| Since 2014, a succession of budget deals has waived the Budget Control Act caps, and the deal in its current form does not revive them past their expiration in 2021. | Since 2014, a succession of budget deals has waived the Budget Control Act caps, and the deal in its current form does not revive them past their expiration in 2021. |
| Meantime, the federal debt has ballooned to $22 trillion. Despite healthy economic growth, the federal deficit for this fiscal year has reached $747 billion with two months to go — a 23 percent increase from the year before. | Meantime, the federal debt has ballooned to $22 trillion. Despite healthy economic growth, the federal deficit for this fiscal year has reached $747 billion with two months to go — a 23 percent increase from the year before. |
| “It appears that Congress and the president have just given up on their jobs,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, which blasted out a statement arguing the tentative deal “may end up being the worst budget agreement in our nation’s history.” | “It appears that Congress and the president have just given up on their jobs,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, which blasted out a statement arguing the tentative deal “may end up being the worst budget agreement in our nation’s history.” |
| “The economy is great and able to accommodate changes,” she said in an interview. “But we’re about to make things worse due to nothing other than the lack of political will.” | “The economy is great and able to accommodate changes,” she said in an interview. “But we’re about to make things worse due to nothing other than the lack of political will.” |
| The rising costs of an aging population, with the baby boom generation drawing Social Security and Medicare benefits, and Washington’s spending habits have led to increases in both federal spending and interest costs on the growing national debt. During the first two years of the Trump administration, the debt increased by more than $2 trillion, in part because of the 10-year, $1.5 trillion tax cut and large spending increases Mr. Trump signed into law. | The rising costs of an aging population, with the baby boom generation drawing Social Security and Medicare benefits, and Washington’s spending habits have led to increases in both federal spending and interest costs on the growing national debt. During the first two years of the Trump administration, the debt increased by more than $2 trillion, in part because of the 10-year, $1.5 trillion tax cut and large spending increases Mr. Trump signed into law. |
| Lawmakers and officials who once raised alarm over the growing debt — including Mr. Trump himself, who warned in 2015 that debt over $21 trillion would “have effectively bankrupted our country” — have largely fallen silent. In the first round of Democratic presidential debates, the national debt was barely mentioned, with candidates choosing to focus on countering economic inequality and beefing up government programs. | Lawmakers and officials who once raised alarm over the growing debt — including Mr. Trump himself, who warned in 2015 that debt over $21 trillion would “have effectively bankrupted our country” — have largely fallen silent. In the first round of Democratic presidential debates, the national debt was barely mentioned, with candidates choosing to focus on countering economic inequality and beefing up government programs. |
| Once a deal is enacted, lawmakers have to race to agree on how to allocate the money before Oct. 1, when current spending laws expire. The House has passed 10 of the 12 spending bills needed to keep the government open afterward, but that legislation will have to be updated based on funding levels from any budget deal. | Once a deal is enacted, lawmakers have to race to agree on how to allocate the money before Oct. 1, when current spending laws expire. The House has passed 10 of the 12 spending bills needed to keep the government open afterward, but that legislation will have to be updated based on funding levels from any budget deal. |
| The Senate has not yet begun work on any of the bills, which need to be reconciled with the House legislation and approved by the president. | The Senate has not yet begun work on any of the bills, which need to be reconciled with the House legislation and approved by the president. |
| “I want to go to work, I want to do our jobs as appropriators,” said Senator Jon Tester, Democrat of Montana and a member of the Senate Appropriations Committee. “It kind of makes the Appropriations Committee the nothing committee.” | “I want to go to work, I want to do our jobs as appropriators,” said Senator Jon Tester, Democrat of Montana and a member of the Senate Appropriations Committee. “It kind of makes the Appropriations Committee the nothing committee.” |