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Bipartisan budget agreement nears final passage

By Andrew Taylor

Associated Press

Published: Wednesday, Dec. 18 2013 11:49 a.m. MST

Sen. Jeanne Shaheen, D-N.H., who also faces a potentially tough re-election campaign next year, promptly announced she would seek to repeal the military pension cut and immediately won backing of other Democrats facing difficult races next year.

The bill caps a sometimes chaotic year in Washington that began with a January deal to avert a "fiscal cliff" of automatic spending cuts and expiring Bush-era tax cuts. The year also featured brinksmanship over the federal debt limit and a 16-day partial shutdown of the government sparked by Republicans in a futile attempt to curb implementation of the Affordable Care Act.

The budget agreement allows lawmakers to claim a modest accomplishment as they leave a bitterly divided Washington.

It sets the stage in January for the pragmatic-minded House and Senate Appropriations committees to draft a trillion-dollar-plus omnibus spending bill combining the 12 annual appropriations bills for the budget year that began Oct. 1. It would provide $1.012 trillion for the fiscal 2014 year already underway, a $45 billion increase over what would be required under the penalty imposed by a 2011 budget deal.

Agency budgets totaled $986 billion in 2013 after automatic cuts called sequestration were imposed, causing numerous furloughs, harming military readiness and cutting grants to local school districts, health researchers and providers of Head Start preschool care to low-income children, among numerous effects.

Due to the design of the automatic cuts, even with the boost the Pentagon still would see its non-war 2014 budget essentially frozen at 2013 levels, while domestic agencies would see an increase of about 4 percent. But those levels remain well below what was envisioned in the 2011 budget pact.

The cuts would be replaced with money from things such as higher airline security fees, a requirement that new federal workers pay more toward their pensions, the 1-percentage-point cut in the pensions of working-age military retirees and premium increases on companies whose pension plans are insured by the federal government.

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