On August 2, 2019, President Trump signed the Bipartisan Budget Act of 2019, raising the budget caps for FY 2020 and FY 2021 and suspending the debt ceiling. Seamus Daniels and Todd Harrison assess the impact of the budget deal on defense in their latest analysis.
President Trump signed off on a two-year budget deal that does many good things: it keeps that the government running, raises the debt ceiling, funds defense and domestic programs at levels their proponents can accept and does all this two months before the fiscal year begins. The downside is that the deal adds $1.6 trillion to the deficit over the next ten years, a bill the current generation has no intention of paying and which it happily sends to its children and grandchildren.
The Trump administration is not requesting that Congress raise the budget caps at all, either for defense or non-defense. Instead, the administration is asking Congress to use a loophole in the law to allow for higher defense spending without breaching the budget caps: overseas contingency operations (OCO) funding.