President Trump signed off on a new two-year federal budget of $2.7 trillion on Friday, August 2.
U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi (D-Calif.) had reached the agreement, on Monday, July 22, for a budget that increases the national spending cap by $320 billion and places on hold a new national debt ceiling until July of 2021.
The new budget also sets defense and non-defense spending for the next two fiscal years. New defense budgets are believed to be $738 billion and $740 billion for fiscal years 2020 and 2021, respectively, figures somewhat below those Trump had sought.
Speaking to reporters at the time the agreement was reached, President Trump emphasized, “[It’s] very important that we take care of our military. Our military was depleted, and in the last two and a half years, we undepleted it, to put it mildly. We have made it stronger than ever before. We need another big year.”
The budget allows for increasing the national debt, enough to represent something of a compromise on the part of conservatives. President Trump believes he can compensate by implementing more aggressive spending cuts in 2021, after two years of expected economic growth.
Rep. Pelosi and Sen. Schumer (D-N.Y.) had expressed their support for the new budget deal in a joint statement, saying, “A bipartisan agreement has been reached that will enhance our national security and invest in middle class priorities and well being of the American people.”
Senate Majority Leader Mitch McConnell (R-Ky.) had been pushing hard this week to ensure support for the budget from rank-and-file Republicans, many of whom had threatened to split the party over concessions made to Democrats on funding for social programs.
The budget deal passed the Senate on Thursday, by a vote of 67-28, before reaching the president’s desk Friday morning.
The budget does not yet address funding for most federal agencies. Congress is expected to review at least a dozen spending bills for 2020 prior to September 30, which is the end of the government’s fiscal year.