spending caps

Capitol Ink | Trump Deficits and the TEA Party

Mnuchin says there is a topline agreement on spending caps and debt limit
Treasury secretary says talks continue on offsets and structure of a deal

Treasury Secretary Steven Mnuchin said Thursday that the White House, Senate and House have an agreement on a two-year debt ceiling increase. (Tom Williams/CQ Roll Call file photo)

Treasury Secretary Steven Mnuchin said Thursday that agreement has been reached on spending levels for fiscal 2020 and fiscal 2021 as well as a two-year extension of the debt limit.

“The good news is we’ve reached an agreement between the administration, the House and the Senate on topline numbers for both year one and year two. We’re now discussing offsets as well as certain structural issues. And we’ve agreed as part of that deal there would be a long-term, two-year debt ceiling increase,” Mnuchin said on CNBC’s “Squawk Box.” “So, I think, all of our first choice is to reach an overall agreement and we’re working hard to do that. But if for whatever reason we don’t get there in time, I am encouraging a debt ceiling increase.”

Pelosi, Mnuchin appear close to spending caps, debt limit deal
Agreement would likely include a two-year extension of the debt limit and spending levels

Pelosi reiterated Tuesday her view that in addition to "parity" for nondefense and defense spending increases, funding should be added for Department of Veterans Affairs health care. (Photo By Bill Clark/CQ Roll Call)

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are close to making an announcement about spending caps and the debt limit.

“We have a clear understanding of what we want to agree to, and I think that's progress,” Pelosi said Tuesday afternoon after speaking with Mnuchin, who was preparing to leave Wednesday for the G-7 meeting in France. “We'll have an announcement about something soon, one way or the other.”

Senate appropriations markups likely off until September
Congressional leaders and Trump administration have to agree on spending caps in next few weeks

Senate Appropriations Chairman Sen. Richard Shelby, R-Ala., is holding off on assembling the fiscal 2020 spending bills (Bill Clark/CQ Roll Call file photo)

The Senate Appropriations Committee likely won’t mark up any of its fiscal 2020 spending bills before leaving town for the August recess — the first time in more than three decades the panel hasn’t debated any of the annual spending bills before the customary summer break.

The decision to hold back Senate appropriations bills in the absence of a spending caps agreement has set a markedly different pace for the committee than last year, when it sent all 12 of its bills to the floor before the break began.

Road ahead: Pressure rising for debt limit deal
Lawmakers face deadline on debt even as other priorities come to floor

Speaker Nancy Pelosi, D-Calif., and other congressional leaders and the administration only have a few legislative days to strike a deal  on raising the debt limit. (Bill Clark/CQ Roll Call)

Congress is set to consider several high-profile measures this week, including holding two Cabinet officials in contempt, raising the minimum wage and ratifying tax treaties, but lawmakers will be unable to avoid the contentious issue of raising the federal debt ceiling. 

Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have been speaking by phone, trying to reach agreement on avoiding a potentially calamitous debt default.

McConnell waiting on House and White House deal on spending caps
Without an agreement on limits, Senate appropriators don’t know how much they have to spend, majority leader says

Senate Majority Leader Mitch McConnell is waiting for a final agreement on spending limits, which hinders Senate action on spending bills. (Photo by Caroline Brehman/CQ Roll Call)

Senate Majority Leader Mitch McConnell hinted Thursday that the Senate won’t set its own discretionary spending level and proceed with appropriations markups until a universal caps agreement is reached between House Democrats and the Trump administration.

“I support getting some kind of deal that can tell us how much we can spend so we can go forward,” McConnell said. “The two key players in any caps deal are the speaker and the president. If they can agree on how much we can spend, then we are not spinning our wheels.”