WASHINGTON — Tonight, Secretary Mnuchin and Speaker Pelosi released the final details of their backroom deal to bust through 2011 Budget Control Act caps and raise the debt ceiling. Paul Winfree, director of the Roe Institute for Economic Policy Studies, released the following:
In a rare moment of fiscal discipline, Congress’ passage of the Budget Control Act (BCA) in 2011 placed caps on discretionary spending. Since its passage, Congress has routinely violated the spending caps with no regard for the consequences. This latest deal effectively renders the BCA dead.
On top of the new spending, the deal suspends the debt limit for the next two years, piling on as much as $2 trillion more in debt. Hitting the debt limit ought to be a wake-up call for lawmakers to confront our nation’s unsustainable spending. Instead, many in Washington will celebrate the increased spending from BCA’s demise. But anyone concerned about the nation’s fiscal health should be alarmed.
This deal comes less than four years after President Trump campaigned to balance the budget by cutting spending and after his administration produced three budgets to move toward fiscal sustainability. Few forces would threaten the president’s pro-growth agenda more than $22 trillion in debt fueled by unchecked government spending. If President Trump takes this deal—the worst in a decade—his fiscal legacy will be no different than the Obama and Bush administrations that he has criticized.