U.S Congress approved $1.4 Trillion Budget to prevent 2nd Government Shutdown

Listen to this article

The U.S President Donald Trump and congressional leaders have announced that they had struck a critical debt and budget agreement. The deal took place to avoid politically dangerous tumult over the possibility of a government shutdown or first-ever federal default. Trump announced the deal on Twitter, the Democratic House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer announced it in a statement. It will restore the government’s ability to borrow to pay past and next year’s bills. Trump tweeted, “I am pleased to announce that a deal has been struck. He added, “There will be no poison pills added to follow-up legislation. This was a real compromise in order to give another big victory to our Great Military and Vets”!

Nancy Pelosi and Chuck Schumer said in a statement that the deal will empower national security and invest in middle-class priorities that advance the health, financial security, and well-being of the American people. They claimed credit for winning more than $100bn worth of spending increases for domestic priorities since Trump took office. The agreement shows $1.37 trillion in agency spending next year and slightly more in the fiscal year 2021. It has been considered a win for politicians eager to return Washington to a more predictable path following political turmoil and polarization. The defense hawks determined to cement big military increases and Democrats are looking to protect domestic programs. Both sides view it as better than a protracted battle this fall that probably wouldn’t end up much differently.

Moreover, the budget deficits are rising to $1 trillion levels. It requires the government to borrow a quarter for every U.S dollar the government spends. It is noteworthy that the thriving economy and 3 rounds of annual Trump budget proposals promising to crack down on the domestic programs that Pelosi is successfully defending now. Maya MacGuineas (president of the committee for a responsible federal budget) said, “This agreement is a total abdication of fiscal responsibility by Congress and the president. It may end up being the worst budget agreement in our nation’s history, proposed at a time when our fiscal conditions are already precarious”.