Federal, Legislation, Regulation

House, Senate Budget Committees reach bipartisan budget deal

BudgetLawmakers reached a bipartisan budget deal on Tuesday—ahead of the Dec. 13 deadline—that would avoid another government shutdown.

The deal, reached between Senate Budget Committee Chairman Patty Murray (D-Wash.) and House Budget Committee Chairman Paul Ryan (R-Wis.), sets overall discretionary spending for 2013 at $1.012 trillion, halfway between the Senate’s budget of $1.06 trillion and the House budget of $967 billion, and at $1.014 trillion for 2014.

“This agreement breaks through the recent dysfunction to prevent another government shutdown and roll back sequestration’s cuts to defense and domestic investments in a balanced way,” Murray said. “It’s a good step in the right direction that can hopefully rebuild some trust and serve as a foundation for continued bipartisan work.”

It will provide $63 billion in sequester relief, split evenly between defense and non-defense programs. Sequester relief is offset by deficit-reduction provisions throughout the budget. Mandatory savings and non-tax revenue total approximately $85 billion, and the deal would reduce the deficit by between $20 billion and $23 billion over two years.

“I’m proud of this agreement,” Ryan said. “It reduces the deficit—without raising taxes. And it cuts spending in a smarter way. It’s a firm step in the right direction, and I ask all my colleagues in the House to support it.”

The legislation will first go to the full House before moving to the Senate for a vote. If signed into law, appropriations committees will begin work on spending bills, which have a Jan. 15 deadline.

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