Agreement reached on two-year budget deal

President Trump announced on Monday that Congress and the White House had reached a two-year budget deal after days of furious negotiating.

The agreement, spearheaded by House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin, sets the top-line numbers for overall defense and non-defense spending for the 2020 and 2021 fiscal years. It would also suspend the debt ceiling through July 2021.

“I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy - on a two-year Budget and Debt Ceiling, with no poison pills,” Trump tweeted.

It’s a significant win for Mnuchin and Pelosi, who have spoken several times over the past two weeks, as well as for Majority Leader Mitch McConnell (R-Ky.), who took a back seat in the talks but has been pushing the White House to accept a two-year deal.

It also includes enough sweeteners for both sides to cherry pick what seas they’ll claim victory on including a bump in defense spending, considered a top priority for Republicans, and the domestic priorities touted by Democrats.

“This was a real compromise in order to give another big victory to our Great Military and Vets!” Trump added in a follow-up tweet.

Trump didn’t offer any details in his tweets on what the spending levels would be for the next two fiscal years.

Trump had requested $750 billion in defense spending and $567 billion in non-defense. But the agreement is expected to be significantly different with defense spending closer to $735 billion and non-defense spending significantly higher.

The totals will be higher than the current fiscal year 2019 levels, which were $716 billion for defense and $620 billion for non-defense.