Over the holiday weekend, President Joe Biden and House Speaker Kevin McCarthy (R-CA), and their negotiating teams, reached an agreement to lift the debt ceiling until 2025. The agreement avoids American default on sovereign debt and allows the US Department of Treasury to continue issuing bonds to pay for government operations. The deal also: sets reduced federal spending limits for the next two years, provides approval for a natural gas pipeline project in Appalachia, rescinds some unspent federal COVID recovery funds, imposes work requirements on some individuals receiving government assistance, and restarts federal student loan payment collections in September.
The U.S. House is preparing to vote on the plan as early as Wednesday, and the Senate has suggested they may remain in session over the weekend to see the bill through. Both chambers will need to approve the legislation and send it to President Biden before the current debt ceiling limit is reached on June 5.
Conservative Republicans in the House are expressing dismay at the scope of the deal, suggesting that Speaker McCarthy could have done more to impose spending restrictions and reform of government programs. Meanwhile, the Speaker and his team have been adamant that the package is a victory because the White House has long argued in favor of raising the debt ceiling without any policy reforms or changes, believing those conversations should happen separately from any legislative action to avoid default.
|