4 Ways the Federal Budget Deal Would Hit Your Wallet

What's Hot

Do This or Your iPhone Bill May SkyrocketSave

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

8 Things Rich People Buy That Make Them Look DumbAround The House

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

More Caffeine Means Less Dementia for WomenFamily

9 Tips to Ensure You’ll Have Enough to RetireFamily

5 DIY Ways to Make Your Car Smell GreatCars

30 Awesome Things to Do in RetirementCollege

5 Spots Where Retirees Can Live for Less Than $40,000Real Estate

10 Ways to Pull Together the Down Payment for a HomeCredit & Debt

10 Ways to Reduce Your Homeowner’s Insurance RatesFamily

50 Ways to Make a Fast $50 (or Lots More)Grow

This deal would keep the government functioning without interruption well into 2015, and it would impact us in several noticeable ways.

This post comes from Julie Tilsner.

Never let it be said that our lawmakers in Washington can’t get things done. Mere days before the winter recess, House Budget Committee Chairman Paul Ryan, R-Wisc., and Senate Budget Committee Chairwoman Patty Murray, D-Wash., announced a budget agreement that would keep the government open through the fall of 2015.

It has its critics. Neither side is thrilled. But it also would mean no more government shutdowns or threats of a government default on its debt. That’s a blessing.

As Joshua Green wrote for BloombergBusinessweek, “The October shutdown reduced projected fourth-quarter gross domestic product growth by about a half percent, while Republican default threats pushed up U.S. bond yields across every maturity, raising U.S. borrowing costs and adding to the federal debt.”

Should this agreement pass muster in the House and Senate, here’s how it could directly impact your wallet:

1. Airline tickets will cost more

Fees that help support the Transportation Security Administration would increase beginning July 1.

CNN explains:

The Ryan-Murray agreement would raise the TSA security charge to $5.60 for any one-way trip. So $11.20 round trip.  Currently, the so-called “9-11 fee” is $2.50 for a nonstop flight and $5 for travel that involves connecting flights. The deal would charge the same $5.60 regardless of whether the flight plan was nonstop or not.

2. Your unemployment will not be extended

The agreement does not extend federal unemployment benefits, which are set to expire Dec. 28 for 1.3 million Americans who’ve been unemployed for at least half a year.

Because unemployment benefits translate into economic activity, that’s $39 billion the economy won’t be seeing next year, Joshua Green wrote. 

3. Smaller increases for military retirees

Annual cost-of-living increases for military retirees who are under the age of 62 would be reduced slightly. The reduction would not apply to those who retired because of injury, Reuters says.

4. New federal workers will contribute more for their retirement

This wouldn’t affect current employees. The Washington Post explains:

The agreement would create a three-tier system for employee contributions to their civil service pensions. Those hired before this year pay 0.8 percent of their salary, those hired in 2013 pay 3.1 percent and those hired after Jan. 1 would pay 4.4 percent under the budget agreement.

What are your thoughts about this proposed bipartisan budget deal? Let us know in the comments below or on our Facebook page. 

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: How Does Debt Affect Survivors After a Loved One’s Death?

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,666 more deals!