Republicans Torn by Budget Deal

On Monday, congressional leaders, in collaboration with the White House, reached a major deal which could put a halt to a potential fiscal crisis. However, the deal brokered has left many Republicans furious at what they term as their party’s overly generous concessions to their Democratic adversaries.

The terms of the agreement, broadly, would raise domestic and defense spending by $80 billion. It would also lift the national borrowing limit up until March 2017. It could be voted on as early as this coming Wednesday by the House. This would be the same day that Rep. Paul Ryan, R-Wisconsin is expected to be nominated by the GOP. He would be replacing the retiring Rep. John Boehner, R-Ohio, as House speaker.

A tension-rife session too place on Monday night in the basement of the Capitol among Republicans in which final details were still being ironed out. These final details are inclusive of areas such as cuts to the Social Security disability program and to Medicare.

This deal comes at the end of weeks of negotiations led by Boehner. Up until now, he has been working tirelessly to clear the path for his successor to take over and do his job without a lingering and divisive fiscal crisis looming on the horizon. Such a threat would most certainly damage Ryan’s speaker-ship.

Unfortunately, the secretive talks and rush to broker a deal has prompted much criticism among the Republicans. Many among the House and State Republicans opine that these frantic efforts to push this hastily agreed-to measure into law has resulted in Boehner conceding too much.

Critics include Michigan Rep. Justin Amash who is a member of the conservative House Freedom Caucus. He stated clearly that he expected to take a participatory role in the brokering of this deal rather than to simply take commands. He also stated that he was waiting for a comment on this deal by Paul Ryan.

Thus far, Ryan has declined to comment to reporters on the private meeting that was recently held, choosing instead to remain low key. He also declined to weigh in during a private, highly-tense, meeting between the Republicans. Ryan is the chairman of the House Ways and Means Committee.

Another strong critic is Louisiana Republican Rep. John Fleming who commented to reporters that Boehner essentially “threw the committee chairmen under the bus”. He seemed to suggest because the committees failed to do their work, members were now being pushed into accepting this deal.

According to House Budget Committee Chairman Tom Price, R-Georgia, however, he was working on fiscal reforms when, in the midst of reforms, leadership told him to stand down.

Approximately 10 House conservatives had complained during the meeting about the process by which such a major deal was being rushed to the floor, bypassing the regular order.

Other critics include Rep. Walter Jones who is a conservative from North Carolina. He stated that while he was still waiting for the full details, he would certainly not be “blackmailed” into supporting a debt limit increase.

Other complaints heard across the Capitol included that by Sen. Tim Scott of South Carolina who stated that although it was still early in the process but he was leaning towards a no. He felt it would not be in the best interest of the country.

According to Senate GOP Whip John Cornyn who is the No. 2 in his conference, no one is in full support of this agreement and one would not be hearing the sounds of celebration any time soon.

While much conflict remains at present, many expect that there will, in fact, be enough support among the Democrats as well as a sizeable number of supportive Republicans to be able to pass the deal later on this week. This is mostly in part due to the fact that the bill would raise defense spending which would help reduce the impact of sequestration. This is enough to win the support of large portion of GOP defense hawks.

Supporters of the deal include Senator John McCain who commented to reporters that although the deal is $5 billion short on defense funding in 2016 and would be even shorter in 2017, it is still a workable solution.

Essentially the bill would increase spending caps by $80 billion. In the first year, it would be $50 billion, followed by $30 billion in the second year and it would be divided equally between domestic and defense programs. This was the result of weeks of deliberations between Boehner, House Minority Leader Nancy Pelosi, Senate Majority Leader Mitch McConnell and Senate Minority Leader Harry Reid.

Although Paul Ryan has been seemingly uninvolved in the negotiation of this deal, it bears considerable similarity to the two-year budget deal he was responsible for in 2013. On that instance, he chaired the budget panel along with Sen. Patty Murray, his Democratic counterpart from Washington.

Salient features of the deal include the following:

Spending under the agreement will be offset by sales of public airwaves for telecommunications companies, companies, sales from strategic petroleum oil reserves and the changes to the crop insurance program.
Increases in Medicare premiums will be spread out over time. This way, beneficiaries will not feel the pain of these increases so acutely.
Social Security disability trust fund will be overhauled.
An increase in funds for the Pentagon’s overseas contingency account
A repeal in Obamacare provisions which forces workers to automatically enroll in employer-sponsored health care.

In spite of the concerns and criticisms, the deal may well go ahead next week because, ultimately, it is in fact better than no deal at all.As lawmakers face a potential default next week, most realize they have little choice at all in the matter.