Trump says lawmakers reach bipartisan deal to suspend debt limit

WASHINGTON: President Donald Trump announced a bipartisan deal to suspend the US government’s borrowing limit and boost spending levels for two years.

“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 said on Twitter. “This was a real compromise in order to give another big victory to our Great Military and Vets!”

The House would have to approve the agreement this week before members leave July 26 for a six-week recess. The Senate can put it to a vote next week. The measure will need Trump’s signature to become law, and he didn't explicitly say he'll sign it.


“Today, a bipartisan agreement has been reached that will enhance our national security and invest in middle class priorities that advance the health, financial security and well-being of the American people,” Pelosi and Schumer said in a joint statement.

The broad agreement, finalised after weeks of negotiations between Pelosi and Treasury Secretary Steve Mnuchin, would eliminate the risk that the government could miss payments as early as September. It would also cancel automatic cuts that would have reduced domestic spending by $55 billion and military spending by $71 billion compared with 2019 levels.

Both sides can claim victories in the deal, though neither got everything they put on the table at the outset of negotiations.