Today House and Senate budget negotiators came to an agreement on a $35 billion, five-year package of cuts in spending, after agreeing to trim the plan by about $6 billion. This agreement was made in large part because of objections voiced by Senator Gordon Smith (R-OR) concerning the size of Medicaid cuts, as well as the fact that those cuts would most likely grow in years to come. Smith sponsored an amendment in the Senate which stripped many of the entitlement cuts from the Senate's budget resolution. His amendment was passed by a margin of 52 - 48. The budget plan agreed to in conference assumes $843 billion of discretionary spending in FY 2006. It reduces the amount of money that the House Ways and Means Committee will have to cut in reconciliation from $6 billion to $1 billion. The budget plan also assumes $106 billion worth of tax cuts over the next five years, $70 billion of which are protected under reconciliation. This budget plan increases the already record-high deficit, and at the same time calls for more tax cuts for the wealthy. It cuts almost all funding for domestic programs by 1 percent, yet protects $70 billion worth of tax cuts in under reconciliation. Congress is effectively taking money from social programs that help the average American, and giving it out in the form of tax breaks to the wealthy. For more information on the budget agreement, click here and here. To read Center on Budget and Policy Priorities Director Bob Greenstein's comments, click here. For a CBPP analysis, click here.