India is a top business destination--Mobility professionals gathering in Bengaluru
Congressional leaders and President Donald Trump have agreed to a two-year budget deal, avoiding potential fiscal crises this fall. The deal would increase both military and domestic spending by more than $300 billion over the next two years and raise the debt ceiling. Raising the debt ceiling allows the U.S. government to borrow more money and mitigates the risk of the U.S. government defaulting on its loans, something that would be extremely bad for the global economy. Both the House and Senate passed the deal, before Congress adjourned for summer recess. President Trump made things official by signing the deal on August 2, 2019.
While this spending deal increases government spending, how exactly these dollars are spent must still be legislated by Congress through the appropriations process. The Congressional appropriations process is important to monitor because it will ultimately decide which areas of the government receive or lose funding for the upcoming year. The U.S. government’s fiscal year ends on 30 September, so the appropriations process is already in full swing as Congress works to meet this deadline.
Impact on Mobility
In the agreement, military spending will increase by billions of dollars in both 2020 and 2021. An increased budget for the military could mean that more personnel will need to be relocated. Under the deal, non-military spending will also increase over the next two years. For mobility, this could mean increased funding for agencies such as Customs and Border Patrol (CBP), the Internal Revenue Service (IRS) and the Transportation Security Administration (TSA) which can have a direct impact on the movement of people.
This spending deal is good news for the industry as it will hopefully make it easier for Congress to avoid another government shutdown and could lead to increased funding for some of the agencies that impact mobility every day. When Congress reconvenes in early September, we should see more specifics as to funding levels for the various government agencies. Worldwide ERC® will continue to monitor the appropriations process for any items that may impact the mobility industry.
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