A two-year federal budget agreement reached by leading lawmakers last week will scale back budget sequester cuts in the fiscal years 2014 and 2015 while giving congressional appropriators a framework within which to draft an omnibus spending bill and avoid a government shutdown next month.
The deal, negotiated by House Budget Committee Chairman Paul Ryan (R-Wis.) and Senate Budget Committee Chairman Patty Murray (D-Wash.), allows an additional $63 billion in discretionary spending over the next two years, split equally between defense and non-defense programs. In FY14, the agreement will provide an additional $22 billion for non-defense programs (such as EPA), compared to earlier sequester-impacted budget caps. Overall, the deal allows for an FY14 discretionary spending level of $1.012 trillion.
The degree to which these higher spending caps will translate to additional funding for EPA or water infrastructure programs is not clear. Over the next month congressional appropriators will develop a final FY14 spending plan that essentially carves up the $1.012 trillion among various discretionary departments and programs. Lawmakers will aim to finish this task before current federal spending authority runs out on January 15.
The House of Representatives approved the budget deal last week, and the Senate plans to act within the next few days.