News / USA

US Fiscal Deal Leaves Major Budget Challenges Unaddressed

House Speaker John Boehner of Ohio arrives on Capitol Hill, Wednesday, Oct. 16, 2013.
House Speaker John Boehner of Ohio arrives on Capitol Hill, Wednesday, Oct. 16, 2013.
Michael Bowman
The bipartisan agreement to reopen the U.S. government and avoid a debt default removes the immediate threat of financial calamity, but leaves America’s long-term fiscal challenges unaddressed. Lawmakers of both parties are acknowledging that major battles on spending, taxation, and government reforms lie ahead.

First the good news: the United States appears to have dodged a bullet to the nation’s economic heart. But the reprieve will be temporary.

Democratic Senator Mark Warner noted Wednesday’s accord restarts federal funding and extends the nation’s credit limit for just a few months.

“We have got 90 days before the government runs out of money again. We have 113 days until the debt ceiling might have to be raised again," said Warner.

Until then, a group from both houses of Congress will meet to hammer out a bipartisan budget agreement and attempt to address America’s long-term fiscal imbalances.

Even as lawmakers of both parties hailed Wednesday’s accord, they were quick to stake out partisan priorities going forward. Republican Senator Mitch McConnell pledged to fight to preserve automatic, across-the-board spending cuts that went into effect at the beginning of the year.

“Washington actually can cut spending. For the first time since the Korean War, government spending has declined for two years in a row. And we are not going back on this agreement," said McConnell.

Wednesday’s agreement locks in current austerity funding levels until January, when even deeper automatic cuts will take effect. Democrats want to replace the cuts - known as sequestration - with other cost-saving and revenue-enhancing measures. Once again, Senator Warner:

“Sequestration was set up to be so stupid that no rational group of people would ever let it happen. I understand that we have to cut back on spending. But there are smarter ways to do it," he said.

Democrats are likely to press for higher spending levels on education, the nation’s infrastructure, and other domestic priorities. Some Republicans want to spare the military from further budget cuts, but are likely to insist on deeper cuts to other areas of the budget to keep overall spending at sequester levels. Many Democrats want new additional tax revenue - something almost all Republicans oppose.
 
Compromise will be key to a larger budget agreement, according to Democratic Senator Tim Kaine.

“If there is to be a deal, make no mistake, it is going to have to be a bipartisan deal. Divided government means we have to listen to each other, we have to negotiate, we have to find common ground," said Kaine.

But bipartisanship has been a rare commodity on Capitol Hill, a fact underlined by the fiscal impasse that closed the government and sent America to the edge of default. But the resolution of that impasse offers hope going forward, according to Republican Senator Kelly Ayotte, who urged her colleagues to unite for the common good.

“Let us take on the big challenges facing this nation: the $17 trillion in debt. Let us get a budget for the nation. Let us move forward from here, learn our lessons, work together, and get it done for the American people," said Ayotte.

The question now is: will lawmakers fall back into old partisan habits, or will a new spirit of bipartisanship propel Congress to far-reaching agreements that secure America’s fiscal future?

You May Like

Multimedia Obama, Modi Break Nuclear Deal Deadlock

Impasse over liability issues had been stalling bilateral civilian nuclear cooperation; deal reached at start of US president's three-day visit to India More

WHO's Late Efforts in Tackling Ebola Highlight Need for Reform

Health experts debate measures to reform agency’s response to global public health emergencies in special one-day session on deadly outbreak More

One Tumultuous Year in Power for CAR's President

As sectarian violence raged across Central African Republic, interim President Catherine Samba-Panza has Herculean task: to end civil war and put country back on right track More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Worldwide Photo Workshops Empower Youthi
X
Julie Taboh
January 23, 2015 11:08 PM
Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.
Video

Video US Marching Bands Grow Into a Show of Their Own

The 2014 Super Bowl halftime show was the most-watched in history - attracting an estimated 115 million viewers. That event featured pop star Bruno Mars. But the halftime show tradition started with marching bands, which still dominate the entertainment at U.S. high school and college American football games. But as Enming Liu reports in this story narrated by Adrianna Zhang, marching bands have grown into a show of their own.
Video

Video Secular, Religious Kurds Face Off in Southeast Turkey

Turkey’s predominantly Kurdish southeast has been rocked by violence between religious and secular Kurds. Dorian Jones reports on the reasons behind the stand-off from the region's main city of Diyarbakir, which suffered the bloodiest fighting.
Video

Video Kenya: Misuse of Antibiotics Leading to Resistance by Immune System

In Kenya, the rise of drug resistant bacteria could reverse the gains made by medical science over diseases that were once treatable. Kenyans could be at risk of fatalities as a result if the power in antibiotics is not preserved. Lenny Ruvaga has more on the story from Nairobi.
Video

Video Solar-Powered Plane Getting Ready to Circumnavigate Globe

Pilots of the solar plane that already set records flying without a drop of fuel are close to making their first attempt to fly the craft around the globe. They plan to do it in 25 flying days over a five month period. VOA’s George Putic reports.
Video

Video How Experts Decide Ethiopia Has the Best Coffee

Ethiopia’s coffee has been ranked as the best in the world by an international group of coffee connoisseurs. Not surprisingly, coffee is a top export for the country. But at home it is a source of pride. Marthe van der Wolf in Addis Ababa decided to find out what makes the bean and brew so special and how experts make their determinations.
Video

Video Yazidi Refugees at Center of Political Fight Between Turkey, Kurds

The treatment of thousands of Yazidis refugees who fled to Turkey to escape attacks by Islamic State militants has become the center of a dispute between the Turkish government and the country's pro-Kurdish movement. VOA's Dorian Jones reports.
Video

Video World’s Richest 1% Forecast to Own More Than Half of Global Wealth

The combined wealth of the world's richest 1 percent will overtake that of the remaining 99 percent at some point in 2016, according to the anti-poverty charity Oxfam. Campaigners are demanding that policymakers take action to address the widening gap between the ‘haves’ and the ‘have nots’, as Henry Ridgwell reports for VOA from London.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid