Exciting news from the White House and House Republicans! They’ve reached an agreement in principle to raise the debt ceiling and avoid a default. House Speaker Kevin McCarthy spoke with President Joe Biden and they both agreed that this deal is “worthy of the American people.” The bill text will be posted on Sunday and a vote will take place on Wednesday.
Biden is thrilled with the agreement, stating that it’s “an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone.” He acknowledges that it’s a compromise, but that’s the responsibility of governing.
Details of the agreement are still emerging, but it’s been reported that the ceiling will be raised through 2025 and non-defense spending will remain at 2023 levels. Medicaid won’t be changed, but time limits will be placed on the Supplemental Nutrition Assistance Program for people up to age 54. Work requirements will be eased for veterans and the homeless.
This agreement was reached just in time, as the deadline was June 5th. If the debt ceiling wasn’t raised, the U.S. government would default on its debt. The consequences would be dire for the U.S. and world economy.
It’s been a high stakes game of political brinksmanship between Biden and McCarthy for months. But now, it seems like they’ve come to a compromise that benefits everyone. Wall Street markets closed higher on Friday in anticipation of a deal.
The next step is for congressional leaders to convince members to support the deal. It’ll likely be an intricate process of whipping votes, with the likelihood that vocal contingents in each party will be opposed to it. But the U.S. has never defaulted on its debt before, and we don’t want to start now.
