Clarification on Debt Default

      Set-Aside Alert’s June 9 story on spending cuts in the debt default agreement requires clarification. Here is the information:

• The agreement keeps non-defense spending roughly at fiscal 2023 levels in fiscal 2024 with no inflation boost;
• The agreement raises non-defense spending by 1% in fiscal 2025, again with no additional boost for inflation; and
• The agreement provides that if Congress does not approve all 12 appropriations bills by Jan. 1, 2024, there will be an automatic 1% reduction in discretionary spending for fiscal 2024.

More information:
06-09-23 Issue: Click to view