Congressional leaders eyeing two-year caps deal up to $200 billion

Congressional leaders eyeing two-year caps deal up to $200 billion
© Greg Nash

Congressional leaders are eyeing a deal to raise budgetary caps by as much as $200 billion over two years.

A deal on budgetary caps will be a first step toward hammering out a spending deal for 2018.

Congressional sources tell The Hill that there is still work to do before a deal can be finalized. Democrats are clamoring to raise nondefense spending caps by the same level as defense caps.

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This week, Congress approved a defense authorization package that's $77 billion higher than the 2018 budget cap.

Government funding is set to expire on Dec. 8, and Speaker Paul RyanPaul Davis RyanGeorge Will: Vote against GOP in midterms Trump tweet may doom House GOP effort on immigration On The Money — Sponsored by Prudential — Trump floats tariffs on European cars | Nikki Haley slams UN report on US poverty | Will tax law help GOP? It's a mystery MORE (R-Wis.) has indicated that he expects a short-term continuing resolution to extend funding to the end of the year. Without a spending deal or an extension, the government would shut down.

But current spending levels are higher than the 2018 caps set by the 2011 Budget Control Act. Without a deal to raise the caps, continuing spending at current levels would trigger sequestration, or across-the-board spending cuts, starting in late January.

While there has been progress in talks between the White House and the so-called four corners — Ryan, Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellPolitical figures pay tribute to Charles Krauthammer Charles Krauthammer dies at the age of 68 Overnight Energy: EPA declines to write new rule for toxic spills | Senate blocks move to stop Obama water rule | EPA bought 'tactical' pants and polos MORE (R-Ky.), House Minority Leader Nancy PelosiNancy Patricia D'Alesandro PelosiMark Penn: Dems could win House, but Pelosi not guaranteed speakership On The Money — Sponsored by Prudential — Trump floats tariffs on European cars | Nikki Haley slams UN report on US poverty | Will tax law help GOP? It's a mystery The American economy is stronger than ever six months after tax cuts MORE (D-Calif.) and Senate Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerDonald Trump Jr. headlines Montana Republican convention Montana's environmental lobby teams with governor to kill 600 jobs Dems allow separation of parents, children to continue, just to score political points MORE (D-N.Y.) — no final agreement has yet been reached.

Meanwhile, Senate Appropriations Committee Chairman Thad CochranWilliam (Thad) Thad CochranTodd Young in talks about chairing Senate GOP campaign arm US farming cannot afford to continue to fall behind Mississippi Democrat drops Senate bid MORE (R-Miss.) said Thursday that he would release a chairman's mark of the four appropriations bill the committee has still not taken up.

“A budget agreement is necessary for the Senate to approve responsible appropriations legislation. I urge all parties to those negotiations to redouble their efforts to reach agreement,” he said in a written statement.