House Budget Committee Chairman Paul Ryan (R-WI) and Senate Budget Committee Chairman Patty Murray (D-WA) announced an $85 billion budget agreement with the Bipartisan Budget Act of 2013. The plan if passed by Congress, would fund the government for the next two years and prevent another government shutdown.
The deal would set 2014 spending levels for federal agencies, including the Pentagon at $1.012 trillion. The number is a compromise between the previous proposals submitted by Republicans and Democrats. The plan finds $63 billion to assist in the across the board cuts of sequestration. Increasing funding for defense by $2 billion and non-defense by $22 billion above sequestration levels in 2014. This number would increase by $9 billion dollars in 2015.
Included in the funding are new investments in infrastructure and education based on priorities outline by the Obama administration. Despite a renewed focus on education, the bill does call for changes to the Federal Family Education Loan (FFEL) program, reducing compensation for what agencies receive for rehabilitating a loan. Including a reduction of the compensation and elimination of mandatory spending for payments to non-profit student-loan services.
Assuming this bill passes the House and Senate, the Appropriations Committees will be busy working to pull together a 2014 spending bill. We will continue to keep you updated as we learn more about the funding breakdown and what this means for federal agencies.