October 16, 2019

No budget deal reached as spending cuts, debt ceiling threaten economy

No budget deal reached as spending cuts, debt ceiling threaten economy



Congressional leaders and the Trump administration left a critical meeting on Wednesday still with no budget agreement, deadlocked over how much to increase domestic spending to avoid a fiscal calamity.

With the lack of progress, Republicans are pitching a short-term agreement to avoid breaching the debt ceiling and blunt budget cuts from the sequester in the fall. It’s unclear if Democrats will agree.

“We are taking sequester off the table. We are prepared to do a one-year CR with a one-year debt ceiling,” said Treasury Secretary Steven Mnuchin. “The president has every intention of keeping the government open.”

Though Senate and House leaders have been seeking a broader, two-year spending deal aimed at taking shutdowns and default off the table through the presidential election, negotiators left the huddle in Speaker Nancy Pelosi’s office far from a deal, according to lawmakers and administration officials.

Democrats said Republicans were reluctant to do anything to get ahead of President Donald Trump and rejected their entreaties, while Republicans said they couldn’t get a serious counteroffer out of the opposing party.

Article originally published on POLITICO Magazine



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