With a little fanfare and, some might argue, too close to be comfortable, President Joe Biden legislation signed on Saturday suspends the $31.4 trillion debt ceiling and prevents a potentially catastrophic first-time national default.
In his first Oval Office address on Friday night, after the bill was passed in Congress, Biden hailed the deal as a major bipartisan achievement and described the deal as “a great achievement.” The crisis was averted.”
“Nobody has everything they want, but the American people have what they need,” Biden said. “Nothing – nothing could be more irresponsible. Nothing could be more dire than that.”
The deal, in effect until 2025, includes $136 billion in cuts to non-defense discretionary spending, imposes new work requirements on many social assistance programs, and speeds up the grant process. energy permits and schedule an end to Biden’s ban on student loan payments.
The signing comes after months of intense and often acrimonious negotiations that sometimes seem on the verge of collapse, and just two days before the US Treasury is expected to run out of funds.
As the deal seemed to pass, the Speaker of the House of Representatives Kevin McCarthy declared victory, advertising what he called “the largest savings cut this Congress has ever voted on.” From the beginning of the negotiations, McCarthy (R-Calif.) looked likely to push the country into default or lose the right to speak in the face of an uprising from the far right of his party. The agreement’s suspension, rather than an increase, of the debt ceiling allows Republicans to claim that they are technically not conceding an increase in the debt limit.
“The big winner, however, is Biden, who prevailed in a confrontation that could engulf the economy — and his re-election chances.” Vanity Fair‘S Molly Jong-Fast debate on Thursday. The long-term implications of the compromise for Biden’s political prospects, however, remain unclear. EQUAL New Republic‘S Alex Shephard observed this week, Biden’s willingness to engage has opened a “Pandora’s box,” signaling to Republicans that they can hold the debt ceiling hostage and pull out deep cuts. more in the future.
“This is a deal being negotiated while radical MAGA Republicans hold the American people hostage,” said Progressive Caucus chairman. Pramila Jayapal (D-Wash.) wrote Wednesday, defending her “no” vote on the bill. “We must be clear that this hostage taking is completely unacceptable.”
