US lawmakers return to assess budget and debt agreement

WASHINGTON (AP) — House lawmakers are returning to Washington to assess a budget and debt deal between Democratic House Speaker Nancy Pelosi and President Donald Trump, but there's no evidence of any last-gasp drama that could upset the hard-won compromise.

Reaction to the two-year deal, which would enable the government's debt-fueled spending increases to continue through late 2021, broke along predictable lines. Washington's pragmatic class is supporting it, sometimes reluctantly, while lawmakers on the right are the main voices of opposition.

The bill, and a $1.37 trillion follow-up round of spending bills this fall, would eliminate any possibility of a repeat government shutdown or a first default on U.S. obligations – or politically exhausting battles that contain risk for both sides.

The deal, announced on Monday by Trump on Twitter and in a statement by Pelosi and Senate Democratic leader Chuck Schumer will restore the government's ability to borrow to pay its bills past next year's elections and build upon recent large budget gains for the Pentagon and domestic agencies.

"I am pleased to announce that a deal has been struck," Trump tweeted, saying there will be no "poison pills" added to follow-up legislation. "This was a real compromise in order to give another big victory to our Great Military and Vets!"

The agreement is on a broad outline for $1.37 trillion in agency spending next year and slightly more in fiscal 2021. It would deliver wins to lawmakers seeking to break Washington's unproductive logjam and at least perform their core job of writing the nation's so-called discretionary budget.

A powerful, longstanding coalition of Democrats, GOP defense hawks and an underappreciated but powerful band of appropriators promise to deliver a strong vote for the legislation. A House vote is expected Thursday; a Senate vote likely would come next week.

Pelosi, of California, and Schumer, of New York, said the deal "will enhance our national security and invest in middle class priorities that advance the health, financial security and well-being of the American people." Top congressional GOP leaders issued more restrained statements stressing that the deal is a flawed but achievable outcome of a government in which Pelosi wields considerable power.

"While this deal is not perfect, compromise is necessary in divided government," said House Minority Leader Kevin McCarthy, R-Calif.

The deal, however, also comes as budget deficits are rising to $1 trillion levels – requiring the government to borrow a quarter for every dollar it spends – despite the thriving economy and three rounds of annual Trump budget proposals promising to crack down on the domestic programs that Pelosi is successfully defending now.

It ignores warnings from deficit and debt scolds who say the nation's fiscal future is unsustainable and will eventually drag down the economy.

A push by the White House and House GOP forces for new offsetting spending cuts was largely jettisoned, though Pelosi gave assurances about not seeking to use the follow-up spending bills as vehicles for aggressively liberal policy initiatives. It also yields to Trump's demand to retain budgetary transfer authority to try to shift funding to border projects.

The head of a large group of House GOP conservatives swung against the deal.