- United States President Joe Biden and Republican House Speaker Kevin McCarthy agreed on a deal in principle over the debt ceiling
- The legislation is set to move to Senate before the June 5 deadline given by Treasury Secretary Janet Yellen
- The bipartisan agreement is expected to give victories to both Democrats and Republicans
United States President Joe Biden and Republican House Speaker Kevin McCarthy have agreed in principle over a debt ceiling deal to avert a government default.
Now, negotiators are trying to complete the bill's text as quickly as they can as McCarthy said that the House would vote on the legislation on Wednesday. This would give the Senate time to consider it before June 5, when the government is expected to run out of funds to pay its bills.
Debt Ceiling Agreement
The date was set as a deadline by Treasury Secretary Janet Yellen based on available information. Despite the announcement of the deal in principle, details of the legislation are scarce, and both sides are expected to have some victories, as per the Associated Press.
However, some conservatives have already expressed concerns regarding the deal. They argued that the compromise does not sufficiently cut future deficits, while Democrats said that the proposed changes outlined in the legislation worry them, including work requirements in programs such as food stamps.
A source familiar with the deal said that it includes increases to spending limits as it helps keep non-defense spending roughly flat in the fiscal year 2024. It would then increase it by 1% for each following year and would provide for a two-year debt limit increase, going beyond the presidential election set in 2024.
Furthermore, the legislation would fully fund veterans' medical care at the levels included in the president's proposed 2024 budget blueprint. This includes a fund that is solely dedicated to veterans who have been exposed to toxic substances or environmental hazards.
Support From Other Lawmakers
Having the support of the Democratic president and the Republican house speaker, the new bill is seen as the potential solution to the fiscal stalemate that has blocked lawmakers for several weeks, threatening an economic crisis, according to the New York Times.
Biden also urged the House and Senate to pass the agreement in a late-night statement that the White House issued. The Democrat argued that it would be essential in preventing a catastrophic default of the American government.
The president added that it is a crucial step forward in reducing spending while protecting critical programs that help working people and the economy. Biden said the new bill protects his and congressional Democrats' key priorities and legislative accomplishments.
In an interview, Congressional Progressive Caucus Chair Pramila Jayapal said that Democratic leaders should maintain some level of concern about securing progressive support for the bill. On the other hand, hard-line conservative Republicans who have repeatedly demanded larger spending cuts have threatened to withhold their support of the new legislation, stifling its potential chances of passing, said CNN.