Trump, Democrats reach two-year budget deal that raises debt ceiling

WASHINGTON, July 23 (AFP): US President Donald Trump said Monday that a "compromise" bipartisan budget agreement has been reached that will boost federal spending by $320 billion and suspend the debt limit beyond the next presidential election. The deal, should it pass Congress as expected, would allow the federal government to borrow more money and avoid a disastrous default in the coming months, while significantly raising budget caps on defence and domestic outlays.

Trump tweeted that the deal was struck between the White House and the top Democratic and Republican leaders in both chambers of Congress "on a two-year Budget and Debt Ceiling, with no poison pills," which could have otherwise derailed the legislation.

The agreement raises the discretionary spending caps for fiscal years 2020 and 2021, pairing it with a suspension of the statutory debt ceiling until the end of July 2021, nearly nine months after the 2020 election.

"This was a real compromise in order to give another big victory to our Great Military and Vets!" Trump added.

The agreement has faced resistance from conservative Republicans who oppose adding hundreds of billions of dollars in additional spending to the US debt.

Democratic leaders hailed it as a victory for securing robust funding for critical domestic priorities, describing the deal as the largest-ever increase in base funding above the so-called sequestration levels set forth in a 2011 law.