$85 billion budget deal near, may ease sequester

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Dec. 11, 2013 – Sen. Patty Murray, D-Wash., and Rep. Paul Ryan, R-Wis., on Tuesday announced an $85 billion budget agreement that would reduce the sequester while providing some $20 billion to $23 billion in budget reduction over 10 years.

The agreement must be approved by the House and Senate before it can be enacted.

Reuters reported that the agreement would allow $63 billion more in spending for federal agencies and discretionary programs than is allowed under the current sequester. The House is expected to vote on the package by Friday, with the Senate possibly following next week.

Budget conferees have been working under a Dec. 13 target for completing a budget deal. A continuing resolution approved following a 16-day federal government shutdown in October is due to expire Jan. 15 – another deadline for action to avoid another shutdown. Meanwhile, a new $20 billion federal sequester is currently scheduled to kick in Jan. 18.

NAFCU is closely following developments on both the budget and defense authorization package for any impact on credit unions.

The association weighed in with budget negotiators on the importance of credit unions’ tax-exempt status and has urged against dipping into the guarantee fees assessed by Fannie Mae and Freddie Mac for other programs.

NAFCU is also watching progress on the defense bill for signs of any potential changes in the Servicemembers Civil Relief Act and Military Lending Act. Credit unions serving any military servicemembers are subject to the SCRA and are potentially affected whenever Congress revisits the MLA.

Related Links:
Summary of budget agreement
Defense credit union issues