The Capitol is seen in Washington on May 22.
J. Scott Applewhite/AP
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J. Scott Applewhite/AP
The Capitol is seen in Washington on May 22.
J. Scott Applewhite/AP
President Biden and Speaker of the House Kevin McCarthy have reached an agreement in principle to avoid default and raise the national debt ceiling.
The deal comes after weeks of negotiations and escalating tensions that led to dangerous defaults on the nation’s loans. The final deal is expected to face opposition from both sides, but Saturday’s announcement shows Republican and Democratic leaders believe they have the support they need to pass the legislation. .
The agreement keeps non-defense spending for fiscal year 2024 at roughly current levels and increases by 1% in 2025, according to a source familiar with the negotiations. Separate deal increases debt limit for two years.
McCarthy plans to put the measure to a vote in the House of Commons as early as next Wednesday.
“After weeks of negotiations, we’ve come to an agreement in principle,” McCarthy said at the US Capitol. “We still have a lot of work to do but I believe this is an agreement in principle worthy of the American people.”
According to a source familiar with the negotiations, the deal protects tens of billions of dollars in clean energy, rebates and efforts to clean up harmful pollutants from oil and gas.
White House addresses partial increase in job requirements
Despite repeatedly pointing out that increasing the number of people required to work under federal assistance programs is a red line in the negotiations, Biden acknowledged the temporary increase in public reporting duties. work for some elderly people to participate in food stamps.
While the agreement doesn’t change the job requirements for Medicaid recipients as originally proposed by Republicans, it does include a compromise focused on increasing the number food stamp recipients must meet. job requirements.
The bill would raise the minimum age for food stamp recipients subject to the work requirement from 50 to 54. However, there are special protections for veterans and those experiencing homelessness. . However, all of those changes will expire in 2030, unless they are extended by Congress.
The Supplemental Nutritional Assistance Program (SNAP), also known as food stamps, is now limit healthy adults with no dependents aged 18-50 to three months SNAP benefits for any 36-month period when they cannot prove they are working or participating in a job or training program at least 20 hours a week.
Biden urges House and Senate to quickly pass a deal
President Biden also released a statement Saturday night saying he would “strongly urge both houses to pass the agreement immediately.”
“The deal represents a compromise, which means not everyone gets what they want,” Biden said in the statement. “It’s the responsibility of management.”
House Republican leaders held a call with GOP members on Saturday night to reveal the details of the deal.
McCarthy praised the deal for having “historical spending reductions,” while ensuring there would be “no new taxes, no new government programs.” He added that the deal includes “consequential reforms that will lift people out of poverty and into the workforce.”
Race against deadline, bill text expected to be released on Sunday
McCarthy said members are still working through the night to write the bill. He is expected to finish drafting the bill and have another conversation with Biden tomorrow, before posting the text of the legislation Sunday afternoon.
The breakthrough came about an hour after McCarthy and Biden spoke by phone on Saturday. Earlier in the day, Biden spoke with Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.
The deal also comes after weeks of negotiations and escalating tensions over the possibility of default on the nation’s loans. The final deal is expected to have objections from both sides, but the announcement indicates that Republican and Democratic Party leaders believe they have the support they need to pass the legislation.
On Friday, Treasury Secretary Janet Yellen updated her guidance on the so-called “X day” — when the United States will run out of money to pay its bills — to June 5. Previously, she had said June 1 as early as.
The timeline to avoid defaults is still tight. McCarthy has announced that House members will have 72 hours to consider any legislation before voting. The bill will then go to the Senate for a final vote and then be signed by the president.
