White House and congressional negotiators rushing to hammer out the final details of a sweeping budget and debt deal are unlikely to include many — if any — actual spending cuts, even as the debt limit is lifted for two years, people familiar with the talks said.
The agreement appeared likely to mark a retreat for White House officials who had demanded major spending cuts in exchange for a new budget deal. But the process remained in limbo while negotiators awaited final approval late Sunday from President Trump.
The pending deal would seek to extend the debt ceiling and set new spending levels for two years, ratcheting back the budget brinkmanship that led to a record-long government shutdown earlier this year.
But instead of the $150 billion in new spending cuts recently demanded by White House acting budget director Russell Vought, the agreement would include a significantly lower amount of reductions. And those reductions aren’t expected to represent actual spending cuts, in part because most would take place in future years and likely be reversed by Congress at a later date. A precise figure could not be learned.
Details remained fluid and subject to change, according to the people describing the talks, who spoke on the condition of anonymity because they were not authorized to reveal details.
In practical terms, the budget agreement would increase spending by tens of billions of dollars in the next two years, a stark reversal from the White House’s budget request several months ago that sought to slash spending at many agencies starting in October.
