On December 22, the President signed into law two major budget bills: the Budget Reconciliation Act (HR 3545, PL-100-203) and the Continuing Appropriation Resolution (HJ RES 395, PL 100-202). The new laws cut the anticipated budget deficit by $33.4 billion in FY 1988 and $42.7 billion in FY 1989 and set FY 1988 appropriations at $603.9 billion. These two bills replaced $23 billion in Gramm-Rudman-Hollings spending cuts that had been in effect since November 20. This report describes the portions of these laws that directly affect agriculture, rural development, and related programs, focusing on commodities and implications for overall policy.j Agency budgets per se are not discussed.