WASHINGTON -- The White House and congressional leaders appear close to finalizing a critical budget deal that would increase domestic spending moderately over the next two years and raise the nation’s debt ceiling in the nick of time.
The deal, which could be announced as early as Monday evening, would help avoid another showdown between Republicans and Democrats as the House GOP works through growing pains as it prepares for new leadership. A White House source on Monday confirmed reports that a deal was near, but didn’t offer additional details.
So far, the White House and congressional leaders are working toward a two-year budget deal that would increase the debt ceiling through March 2017, according to a congressional aide, who added that the deal is close to coming together.
One issue notably left out of talks is reauthorization of the Export-Import Bank, which a majority of Democrats support.
Don Stewart, spokesman for Senate Majority Leader Mitch McConnell (R-Ky.) pushed back against reports as speculation.
"The Leader said publicly from the beginning that he would like two-year certainty and that any increase in spending would have to be fully offset," Stewart said. "But nothing new to report."
Republican leaders, however, did not come to the negotiating table until after returning from summer recess. Democrats had urged them to start a budget summit to hammer out a deal as early as May.
A Democratic source suggested cuts to Medicare and Social Security disability benefits would not be large, or across the board. They would involve lengthening the appeals process when benefits are denied, and starting some sort of demonstration project to offset disability payments when beneficiaries earn other wages. Republicans have been complaining for years about the growth of disability benefits, and alleging rampant fraud in the programs (although advocates say such fraud is rare).
A Democratic official, hoping to assuage progressive concerns about the possibility of those cuts, told The Huffington Post that House Minority Leader Nancy Pelosi (D-Calif.) would play a critical role in the talks. She "is in the room ... and very much at the table," said the official.
Indeed, Pelosi on Friday talked up progress that leaders had made with in negotiations over the budget deal.
According to another Democratic source, Pelosi's good opinion on the final deal would be necessary. The top House Democrat seems to have veto power on any agreement, the source said.
A two-year deal on budget and the debt limit would make good on House Speaker John Boehner's (R-Ohio) promise to "clean the barn" before he retires at the end of this month, and protect his successor from heading straight into battle as early as December -- when Congress would hit its next budget deadline.
A House source said that while there is no final deal at the moment, the source is hopeful one will come together in time to file tonight in the House. In order to meet the debt limit deadline, the House needs to act this week to send something to the Senate.
The source confirmed that the emerging deal would be for two years and achieve sequester relief for defense and non-defense programs. The White House and congressional leaders have been negotiating over caps on spending for domestic programs since Sept. 17.
Such a package would also address the Medicare Part B issue, and protect millions of seniors from significant increases to their premiums and deductibles, the source said.
White House press secretary Josh Earnest cautioned on Monday that “not everything has been agreed to; that means nothing has been agreed to.”
Sam Stein contributed reporting.