Trump, Congress Clinch A Crucial Two-year Debt Ceiling and Budget Deal
• President Donald Trump and bipartisan congressional leaders, on Monday, struck a crucial two-year debt ceiling and budget deal.
• The agreement would increase the US discretionary spending from $1.32 trillion currently to $1.37 trillion for the fiscal year 2020, notes Reuters.
• The House should approve the budget before members leave for a six-week recess from July 26. The deal needs to pass both chambers of Congress.
• The deal could help avert the looming threat of debt default and across-the-board spending cuts. Moreover, it may also prevent a government shutdown as the current funding will expire after September 30.
• The two critical factors, according to Speaker Nancy Pelosi, that lead to the agreement is to prevent a stock market collapse and the fiscal fallout.
• The deal could push the annual budget deficit to over $1 trillion next year owing to new spending and limited savings.