Home Breaking News Do You Understand Paul Ryan’s New Budget Deal?

Do You Understand Paul Ryan’s New Budget Deal?

by Jeremy Holcombe

A new $85 billion budget deal agreement was reached this week, that will fund federal agencies through the fall of 2015. This will avert another government shutdown, and end the cycle of crisis that has paralyzed Washington for much of the past three years.

According to the Washington Post, in a rare display of bipartisan cooperation, House Budget Committee Chairman Paul Ryan (R-WI) stood side by side in the Capitol with Senate Budget Committee Chairman Patty Murray (D-WA) to announce the deal, which would cancel half of the sharp spending cuts, known as the sequester, for the current fiscal year.

“I am very proud to stand here today with Chairman Ryan to say that we have broken through the partisanship and gridlock and reached a bipartisan budget compromise,” Murray said, calling the agreement “an important step in helping to heal some of the wounds here in Congress, and show we can do something without another crisis around the corner.”

This new deal is a welcome sign, especially after a year of furloughs, budget cuts, and uncertainty for federal workers. This new budget deal will fund federal agencies through 2015. That doesn’t seem like too long — but when you think of all the cuts that have been made over the last, year this new deal is somewhat comforting… even if only for a while.

A compromise on pensions and other agreements regarding federal agencies was reached at the last minute. This cancels half of the sequestration spending cuts this fiscal year, and restores some certainty to the budget process in the short term.

The new budget deal is a complex plan, but can more easily be understood and broken down in this video. Take a peek and find out everything you need to know about the new budget deal and how it will affect federal employees.

Article Sources: Washington Post | The Economist

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