H.R.1892 - Bipartisan Budget Act of 2018
February 10, 2018 - This measure abandons any pretense of fiscal responsibility and increases federal spending caps by nearly $300 billion ($2,400 per household) over the next two years. It sets up a structure that will allow Congress to bypass its own budget rules and extends a laundry list of subsidies and special-interest tax breaks. It also suspends the debt limit for a year, for obvious reasons. It has a few silver linings: it repeals IPAB (Obamacare’s rationing board), gives the Pentagon predictable funding for the next two years and provides disaster relief.
Interest rates are already rising, and economists warn that a sharp increase in deficits could cause markets to charge even higher rates for federal borrowing. A one percent increase in interest rates would add $200 billion to our ANNUAL borrowing costs, dwarfing the few cost-savings reforms we’ve managed to enact and threatening a debt spiral that would end in a sovereign debt crisis.
Source: Congressman Tom McClintock