Super Committee Fails to Reach Agreement

In a statement released shortly after U.S. markets closed, the Super Committee declared that it had failed to reach a bi-partisan deal to cut $1.2 trillion of federal spending over the course of the next ten years. The deadline for the proposal was set for Wednesday. However, the 12 member Committee, after weeks of debate, were unable to come together on an agreement.

As the epic battle to balance the budget continues, a deficit reduction plan must be introduced and pass both chambers of Congress as well as get signed by President Obama by January 15, 2012. Otherwise, automatic spending cuts, which include defense spending and cuts to Medicare, will take effect as outlined in the agreement made earlier this summer.  These across-the-board cuts would commence in January of 2013.

Concerns over national security have already been voiced by Congressional members and it is likely that Congress will propose legislation to protect defense funding. In spite of this, President Obama has called on Congress to stand by the deal it made over the summer. He stated earlier today that any effort to reverse the automatic cuts would be vetoed, including any attempts to protect funding for the Department of Defense.  

More information on the Super Committee can be found at http://ow.ly/7AYhv. If you have any questions about the Super Committee's process, please contact Amy Moy at moya@cfhc.org or Celina Keshishian at keshishianc@cfhc.org.