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| Version 4 | Version 5 |
|---|---|
| US Congress cross-party budget deal reached | US Congress cross-party budget deal reached |
| (about 9 hours later) | |
| A cross-party Congressional budget committee convened after an October government shutdown has reached an agreement on the federal budget. | |
| The proposed deal funds the government for two years and reduces the federal deficit by up to $23bn (£14bn). | |
| It also avoids another government shutdown on 15 January when government funding is scheduled to run out. | It also avoids another government shutdown on 15 January when government funding is scheduled to run out. |
| The new deal "cuts spending in a smarter way," Republican Congressman Paul Ryan said on Tuesday. | The new deal "cuts spending in a smarter way," Republican Congressman Paul Ryan said on Tuesday. |
| 'Gridlock' | 'Gridlock' |
| The budget deal also offsets $63bn in previously enacted automatic military and domestic spending cuts triggered in January when Democrats and Republicans failed to reach a budget compromise. | The budget deal also offsets $63bn in previously enacted automatic military and domestic spending cuts triggered in January when Democrats and Republicans failed to reach a budget compromise. |
| Mr Ryan and Democratic Senator Patty Murray, the respective chairs of the House and Senate budget committees, were called on to reach a cross-party budget deal in the wake of October's partial government shutdown over federal spending. | Mr Ryan and Democratic Senator Patty Murray, the respective chairs of the House and Senate budget committees, were called on to reach a cross-party budget deal in the wake of October's partial government shutdown over federal spending. |
| "We have broken through the partisanship and gridlock," Ms Murray said of the new deal. | "We have broken through the partisanship and gridlock," Ms Murray said of the new deal. |
| Mr Ryan said he was optimistic the new budget agreement could pass both sides of the highly politically divided Congress. | Mr Ryan said he was optimistic the new budget agreement could pass both sides of the highly politically divided Congress. |
| The measure is expected to come to a vote before the House recesses for several weeks beginning on Friday. | The measure is expected to come to a vote before the House recesses for several weeks beginning on Friday. |
| According to the Congressional budget chairs, the new deal does not raise taxes but requires newly hired federal workers to make larger contributions to their pensions. | According to the Congressional budget chairs, the new deal does not raise taxes but requires newly hired federal workers to make larger contributions to their pensions. |
| A federal airport security fee adding $5 to the cost of a typical return flight is also included. | A federal airport security fee adding $5 to the cost of a typical return flight is also included. |
| Nature of compromise | Nature of compromise |
| Following the announcement on Tuesday, Republican House Speaker John Boehner called the "modest" cross-party deal a "positive step forward". | Following the announcement on Tuesday, Republican House Speaker John Boehner called the "modest" cross-party deal a "positive step forward". |
| US President Barack Obama issued a written statement labelling the agreement "balanced" and "designed in a way that doesn't hurt our economy". | US President Barack Obama issued a written statement labelling the agreement "balanced" and "designed in a way that doesn't hurt our economy". |
| "This agreement doesn't include everything I'd like - and I know many Republicans feel the same way. That's the nature of compromise," he said. | "This agreement doesn't include everything I'd like - and I know many Republicans feel the same way. That's the nature of compromise," he said. |
| But, "because it's the first budget that leaders of both parties have agreed to in a few years, the American people should not have to endure the pain of another government shutdown for the next two years," he added. | But, "because it's the first budget that leaders of both parties have agreed to in a few years, the American people should not have to endure the pain of another government shutdown for the next two years," he added. |
| Government officials say the deal, which sets discretionary defence and domestic spending at $1.012 trillion for the current fiscal year, aims to carve $20bn - $23bn from the nation's $642bn annual budget deficit. | |
| Political rancour | Political rancour |
| The deal is expected to pass both houses of Congress, despite attempts by Conservative groups to persuade Republicans to oppose it. | The deal is expected to pass both houses of Congress, despite attempts by Conservative groups to persuade Republicans to oppose it. |
| Democratic lawmakers have also expressed frustration over a failed bid to extend benefits for people unemployed longer than 26 weeks. | Democratic lawmakers have also expressed frustration over a failed bid to extend benefits for people unemployed longer than 26 weeks. |
| That program will expire on 28 December, cutting off benefits to more than one million individuals. | That program will expire on 28 December, cutting off benefits to more than one million individuals. |
| But many have praised the cross-party deal as a crucial step forward after political rancour led to a 16-day government shutdown in October which halted many federal services across the country. | But many have praised the cross-party deal as a crucial step forward after political rancour led to a 16-day government shutdown in October which halted many federal services across the country. |
| The manoeuvre is said to have cost the US economy $24bn, as projected by financial services company Standard & Poor's. | The manoeuvre is said to have cost the US economy $24bn, as projected by financial services company Standard & Poor's. |
| Under a temporary deal reached to end that political standoff, the newly-formed budget conference committee was given until 13 December to come up with a new deal or face triggering further automatic spending cuts. | Under a temporary deal reached to end that political standoff, the newly-formed budget conference committee was given until 13 December to come up with a new deal or face triggering further automatic spending cuts. |