Trump announces sweeping budget agreement

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Trump announces sweeping budget agreement
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BREAKING: Trump announces sweeping budget agreement

President Donald Trump announced the White House and congressional leaders clinched a sweeping fiscal deal to lift the nation’s debt limit and dramatically raise federal spending levels.

"We're having very good talks with the speaker of the House, Nancy Pelosi. We're having very good talks with Chuck Schumer and of course with Mitch McConnell and Kevin McCarthy," Trump told reporters during an Oval Office appearance with Pakistani Prime Minister Imran Khan. Congressional leaders want to pass the two-year deal before departing for a five-week recess at the end of the week, which means a vote as soon as this week in the House — if Trump gives his final blessing. The Senate is in session for another week.

There will be approximately $77 billion in offsets as part of the agreement, a move designed to ameliorate concerns by Trump and GOP leaders. The pay-fors will come from familiar sources: Extending Customs fees that are set to expire and extending the so-called "Medicare sequester," according to people familiar with the deal.

It’s unclear whether Pelosi will use the must-pass bill to address the mounting migrant crisis at the southern border. House Democrats could decide to push a slew of protections — which were left out of last month’s border aid bill — in an attempt to force the White House’s hand to fix detention facilities.

Some Senate Republican fear a repeat of the painful shutdown earlier this year, when a group of conservatives close to the presidentPOLITICO Playbook newsletterBy signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time.

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