The White House and Republicans have reached a deal to raise the debt ceiling and avoid a default, according to several reports.
Various news outlets are reporting that President Joe Biden and House Speaker Kevin McCarthy (R-CA) have reached a deal to raise the U.S.’s debt ceiling, narrowly averting what could have been the first default in the country’s history. Following a months-long debate, both sides have reportedly struck a deal to raise the U.S.’s $31 trillion debt ceiling.
“But, I’m not sure it’s completely settled. Might be one or two small things they need to finish. But close enough to move forward,” a source familiar with the negotiations told Reuters.
“I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we’ve come to an agreement in principle that is worthy of the American people.” McCarthy wrote on Twitter.
“It has historic reductions in spending, consequential reforms that will lift people out of poverty and into the workforce, and rein in government overreach. There are no new taxes and no new government programs,” McCarthy added.
I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people.
I'll deliver a statement at 9:10pm ET. Watch here:https://t.co/vmn31INPH5
— Kevin McCarthy (@SpeakerMcCarthy) May 28, 2023
According to CNN, “the text of the deal will be reviewed overnight by both sides to ensure it lines up with the tentative agreement.”
CBS News, citing a source, reported that non-defense spending would increase by less than 10% in 2025.
The deal would keep funding for veterans’ medical care programs, including the Patient Aligned Care Team (PACT) Act which was passed in 2022 and expanded benefits to nearly 4 million veterans exposed to toxic burn pits during their service. According to the deal, the PACT Act’s Toxic Exposure Fund would keep its funding through 2025.
The New York Times reported that the agreement would raise the debt ceiling for two years while reducing some government spending over the same period. The outlet said the negotiation was formed to attract votes from Republicans and Democrats, but it would most likely anger both parties because of the threat of default.
Treasury Secretary Janet Yellen recently warned that a deal would need to be finalized by June 5, 2023, to avoid a default.