House Democrats next week hope to advance a two-year proposal that would raise caps on defense and domestic spending that were put in place in 2011 to reduce the debt.
House Budget Committee Chairman John Yarmuth, D-Ky., told the Washington Examiner “the odds are” his panel will vote next week to advance measure-busting caps that would otherwise limit domestic spending to $542 billion and defense spending to $576 billion for fiscal 2020.
Yarmuth could not disclose the higher top-line numbers but said domestic spending would outpace defense spending, which is in contrast to President Trump’s proposed 2020 budget that provides an overall $750 billion in military spending while keeping domestic spending at the caps level of $542 billion.
“The numbers we are discussing would actually increase nondefense spending more than defense spending,” Yarmuth said.
Congress has largely rejected the spending caps imposed by the 2011 Budget Control Act, which was put in place to lower the ballooning federal debt and deficit. Lawmakers have approved four bipartisan bills over the past eight years that allow them to exceed the caps.
Despite a $544 billion deficit that’s projected to grow significantly, this year will be no different.
Both the House, governed by Democrats, and the Senate, where Republicans are in charge, have already agreed to strike a two-year caps-busting deal that will last until 2021, when the Budget Control Act expires.
Yarmuth said he’s already negotiating with Senate Republicans on top-line numbers for both defense and domestic spending that can pass both chambers.
The sticking point will likely be defense spending.
Senate Budget Committee Chairman Mike Enzi, R-Wyo., has released a draft budget plan that leaves defense spending at the cap level of $576 billion but, according to Yarmuth, it includes a deficit-neutral reserve fund that would allow it to grow up to the $750 billion requested by the president.
“We wouldn’t go that high,” Yarmuth said.
Yarmuth said a vote on the caps is not guaranteed next week because he hasn’t reached a deal with his own House Democrats, who have varying views on how much of an increase domestic and defense spending should receive.
“We are just looking for a number right now,” Yarmuth said.
Yarmuth has largely abandoned taking up a 10-year budget resolution, which would set the party’s spending priorities for the next decade.
Yarmuth said it has been difficult to find agreement with Democrats on a long-term budget plan, because it would potentially involve a call for tax increases in order to pay for higher domestic spending.
The Democratic caucus, while mostly progressive, includes a faction of moderate Democrats and newly elected freshmen from swing districts.
“We have a lot of members who don’t want to vote for revenue increases,” Yarmuth said. “On the progressive side, we have people who don’t want to vote for a larger defense number and want more spending in nondefense.”
The Democrats control the majority but can only afford to lose 17 votes since it’s likely no Republican would back their plan.
“Finding the right number is not easy,” Yarmuth said.
A House-passed caps deal wouldn’t be final.
The House and Senate would have to strike an accord, ultimately.
Senate Appropriations Committee Chairman Richard Shelby, R-Ala., told the Washington Examiner lawmakers on his side of the Capitol have not yet come to an agreement on lifting the caps.
“We haven’t gotten there yet,” Shelby said.
Congress needs to reach a final deal in order to provide appropriators with spending limits for each of the fiscal 2020 spending bills that need to pass by Sept. 30, the end of the fiscal year.
