Gramm-Rudman Bill Approved
The Senate today approved restoring the muscle of mandatory spending cuts to the Gramm-Rudman deficit reduction law with a mandatory new six-year formula aimed at eliminating the deficit.
Although Sen. Pete V. Domenici (R-N.M.) dubbed the plan “a Trojan horse” hiding higher taxes and defense cuts, the bill was passed by a vote of 64 to 34 and sent to President Reagan, who has not indicated whether he will sign it. The measure also contains a provision to raise the federal debt limit to $2.8 trillion to cover government borrowing through May, 1989.
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