Congress agreed on Tuesday July 31, 2012 that ensures the government will not run out of money until March 2013. This gives both the House and Senate more time to discuss the ramifications of scheduled spending cuts in the amount of $607 billion due to come into play at the end of 2012.
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The total savings in cuts over a 10-year period would be $1.2 trillion. Unless current tax laws are extended, those cuts will come into effect January 1, 2013. A vote is scheduled in September on a stop-gap measure that would fund the government until next March.
The agreement offers stability as Congress contemplates issues primarily affecting the middle class. Leaders made assurances that unrelated policy considerations
would not be allowed to hinder passage as they have done previously.
Some criticized the stop-gap measure, saying making an agreement for a six-month time period is not a great achievement.