The nonpartisan Congressional Budget Office confirmed Monday that the debt-reduction deal reached Sunday by the White House and congressional leaders would cut deficits by at least $2.1 trillion over the next 10 years, provided lawmakers in the House and Senate approve the plan.
The legislation would reduce the deficit by at least $2.1 trillion between 2012 and 2021. The compromise would cut spending by $900 billion, followed by $1.2 trillion in savings found by the joint committee created by the bill. If the committee fails to produce legislation to cut that amount, automatic triggers will kick in to reduce spending by the same amount.
House Speaker John Boehner, R-Ohio, had promised $917 billion in immediate cuts last week, in line with the CBO score, which may boost his chances of convincing his caucus to accept the deal. The agreement reached Sunday would raise the $14.3 trillion debt ceiling in two stages.
This article appears in the August 1, 2011, edition of National Journal Daily PM Update.