Fy20 Budget Agreement

The budget agreement between the parties between the leaders of the House of Representatives and the Senate and the Trump administration represents a huge improvement over the deleterious cuts contained in the president`s 2020 budget and provides the security we so desperately need. The agreement increases discretionary funding limits for 2020 and 2021 and suspends the debt ceiling for two years to ensure a strong future for the American people. The vehicle bill for the school aid fund`s agreement, SB 373, is expected to go all the way to the governor`s office this week. You will find all the details of today`s agreement in the analysis of the Senate`s financial administration. If the Senate returns to Capitol Hill on September 9, it will have about three weeks before the end of the fiscal year, September 30, to get some kind of funding agreement. The Senate could introduce and vote on its own version of these draft budgets in the normal order. “It is important that Democrats reach an agreement that permanently ends the Sequestr threat,” said House of Representatives spokeswoman Nancy Pelosi, D-Calif. and Senate Minority Leader Chuck Schumer, N.Y., in a joint statement. “With this agreement, we are working to avoid a new government ceasefire that is so detrimental to the needs of the American people and to the recognition of the work of our public employees.” The Trump administration`s draft budget was released on March 11, 2019. [1] [2] In his proposed budget for 2020, President Donald Trump indicated his intention to freeze federal wages.

The president has until August 31 to formally present to Congress his plans to freeze federal wages, otherwise workers will be subject to a wage adjustment based on a legal formula. “The president, congressional leaders and the leadership of the appropriation commissions will work together to reach a bipartisan, bipartisan agreement on the orderly and timely review of GJ 2020 budget plans to avoid a government ceasefire and a 12-ball omnibus,” Schumer and Pelosi wrote in a summary of the agreement. As with the previous two-year budget agreement, the 2019 bill does not use the retirement of federal public servants to offset significant increases in spending in 2020 and 2021. Congress used two-year budget agreements between parties to set higher premiums for federal public servants. The Bipartisan Budget Act of 2013 required new federal employees recruited after 2013 to contribute 4.4% to their retirements. In the absence of congressional action, the statutory discretionary funding caps will impose an 11 percent reduction in defence and a 9% reduction in non-defence (NDD) programs by 2020 compared to the amounts allocated in 2019. Such deep cuts would have devastating effects on national security and the economic vitality of the United States. The budget agreement replaces these destructive cuts with a realistic fiscal framework to allow Congress, through its annual budget projects, to invest critically in our country`s infrastructure and people. In August, Congress approved a bipartisan budget agreement for fiscal years 2020 and 2021. The agreement increases the limits on total spending on discretionary defence and non-defence programs by US$321 billion over two years.

Funding for national programs will increase by 4.5% over GJ19, or $27 billion.

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