Optimism, Anger over Congress-White House Budget Deal

U.S. Republican leaders Tuesday began selling the comprehensive budget deal they reached with the White House to fellow lawmakers, running into conservative opposition to lifting the debt ceiling without dramatic spending cuts.

The agreement, negotiated largely in secret between outgoing House Speaker John Boehner and the White House with input from other congressional leaders, would raise spending caps by modestly increasing federal spending by about $80 billion over the next two years.

It would also extend U..S borrowing authority into 2017.

Another roughly $31 billion in "contingency operations" funding would go to the Pentagon, offset by tweaks to entitlement programs including Social Security.

The deal requires approval of the Senate and House of Representatives, and it is seen as easing congressman Paul Ryan's transition into the role of speaker of the House, which is expected to occur this week.

The House could vote on the budget plan as early as Wednesday.

Should it pass Congress and be signed into law by President Barack Obama, the deal would avert a looming government shutdown, and a potentially crippling showdown over federal spending until after the 2016 presidential elections.

It also would remove the risk of a default for the rest of Obama's presidency, avoiding the kind of fiscal emergencies that have set Wall Street on edge in the past.

"We have a budget agreement," Boehner told reporters.

"The agreement isn't perfect by any means, but the alternative was a clean debt ceiling increase without any additional support for our troops, without any entitlement reforms."

The White House offered a thumbs up Tuesday, saying the budget deal "protects key priorities" such as entitlements and would generate half a million new jobs through 2017.

"It moves away from quick fixes and harmful budget cuts by locking in a two-year budget agreement that lets us plan for the future instead of governing by crisis every few months."

Boehner, in one of his final moves as leader of the fractious House, negotiated the budget deal with the White House, along with Senate Majority Leader Mitch McConnell and Democratic leaders Nancy Pelosi and Senator Harry Reid.

The secrecy angered conservatives who have long opposed Boehner's style of politics.

"If I were Barack Obama, I would be giddy with glee," sneered Steve King, upset that Boehner would "give up" the leverage of the debt ceiling.

- 'Pound sand' - 

Congressman Tim Huelskamp also expressed disappointment, saying "there's plenty in there for folks not to like" and that fiscal conservatives would reject it.

"It's a $1.5 trillion parting gift to Barack Obama and what we get in exchange for it is an $80 billion spending increase." 

Republican moderate Tom Cole sounded a note of optimism. "I think we have a reasonable shot to get a majority of a majority, which I think would be no small achievement."

The deal would clear the decks for Ryan, and Boehner acknowledged as much to reporters.

"I didn't want anyone to walk into a dirty barn full of you know what," Boehner said. "So I've done my best to try and clean it up."

But conservative Thomas Massie was livid that Boehner bypassed rank-and-file lawmakers.

"He's taken it upon himself to go over, negotiate with the White House and then come back here and tell us to pound sand."

Massie said he believed Ryan, who had been hesitant to run for the speaker's job, insisted the deal be done before he took the gavel so that he not be saddled with the responsibility for the accord.

But the presumptive speaker also expressed anger at the way lawmakers were excluded.

"I think this process stinks," Ryan said Tuesday. "And under new management we are not going to do the people's business this way."

U.S. stocks were largely flat mid-day Tuesday, with news of the deal so far having no perceptible impact.