>> From guns to rum, to race horses, President Donald Trump signs off on hundreds of billions of dollars in new spending, and Washington's age of austerity is over. I'm And Sullivan, in Washington, where people are just now starting to figure out what's actually in that 600 page budget deal that Congress passed in the middle of the night.
The short answer is that it's got somebody for everybody. Everybody, that is, except for budget hawks like Senator Rand Paul, who forced a mini shutdown as he warned that the nation's debt problems will only get worse further down the road.>> The wastes will continue and government will keep taking your money irresponsibly.
>> One thing is for sure, the tight budgets that republicans imposed when President Obama was in charge are now past, and the nation's checkbook is wide open. Of the deal's many big winners, the biggest is the Pentagon, where spending will increase by 10%, to a record $700 billion, that was a priority for Trump.
This will allow the Pentagon to restock bombs dropped on Islamic state and step up training after 16 years of non stop war. At the same time, Democrats want a 10% boost to domestic programs, more money for education, scientific research, and low income housing after years of belt tightening.
And there's more money for healthcare. A program for poor children is now on stable footing for the next ten years. There's $6 billion to fight the opioid crisis, and there's $17 billion worth of tax breaks for special interests like craft breweries, Puerto Rican rum, race horse owners, and NASCAR.
So how's Congress paying for this? Well, it's not. Just like the Republican tax cuts, this new spending is going on the nation's credit card. Trump's promise to balance the budget sideline for now. With all this new spending revving up an already strong economy, the Federal Reserve will face new pressure to tap the brakes through higher interest rates, and that's a prospect that's already spooked investors on Wall Street.
So this new budget deal buys peace in Washington for now, but the price will be paid in the years to come.