Republicans in the Senate are having a tough time coming up with budget and spending plans that will meet the desires of the White House and that can likewise pass the Senate. The impasse comes even as Republicans negotiate among themselves to come up with an acceptable deal. Once Republicans come to an agreement, they’ll have to negotiate with Democrats to drum up enough votes to pass the bills.
Given the wide gulf between Democrats and Republicans, negotiations will be far from easy. Last year, the government suffered a record-breaking shutdown as Trump, Republicans, and Democrats all failed to come to an agreement. With Democrats now in charge of the House, negotiations will likely prove even more difficult this time around.
Come autumn, Congress and the White House will need to sign funding legislation to avoid a shutdown. The federal government will also need to raise the debt limit in order to avoid a default. The debt ceiling has proven to be a particularly thorny issue in the past and if it’s not raised, the U.S. will have to default on some of its debts. This could roil markets around the globe.
Likewise, by the year’s end, Congress and the White House will have to figure out a way to lift austere budget caps that are set to slash spending by $125 billion. So far, Democrats, Congressional Republicans, and President Trump have all remained far apart on budget priorities.
Meanwhile, the U.S. deficit continues to surge as public debt piles up. And while Republicans claimed that tax cuts would pay for themselves, so far it seems that said cuts are at least partially responsible for the growing deficit.
