Today, Senate Budget Committee chairman Patty Murray (D-WA) and House Budget Committee chairman Paul Ryan (R-WI) announced that they have reached a two-year budget agreement in advance of the budget conference's December 13th deadline.
"I'm proud of this agreement," said Chairman Ryan. "It reduces the deficit--without raising taxes. And it cuts spending in a smarter way. It's a firm step in the right direction, and I ask all my colleagues in the House to support it."
"This agreement breaks through the recent dysfunction to prevent another government shutdown and roll back sequestration's cuts to defense and domestic investments in a balanced way," said Chairman Murray. "It's a good step in the right direction that can hopefully rebuild some trust and serve as a foundation for continued bipartisan work."
The Bipartisan Budget Act of 2013 would set overall discretionary spending for the current fiscal year at $1.012 trillion--about halfway between the Senate budget level of $1.058 trillion and the House budget level of $967 billion. The agreement would provide $63 billion in sequester relief over two years, split evenly between defense and non-defense programs. In fiscal year 2014, defense discretionary spending would be set at $520.5 billion, and non-defense discretionary spending would be set at $491.8 billion.
The sequester relief is fully offset by savings elsewhere in the budget. The agreement includes dozens of specific deficit-reduction provisions, with mandatory savings and non-tax revenue totaling approximately $85 billion. The agreement would reduce the deficit by between $20 and $23 billion.
The House of Representatives is expected to take up the Bipartisan Budget Act first, followed by the Senate. If this bill is signed into law, the appropriations committees will then be able to work on spending bills at an agreed-upon level in advance of the January 15th deadline.