The Strategist

White House and Republicans agree to raise US debt ceiling

05/29/2023 - 03:36

Republicans in Congress and the White House have come to a provisional deal to raise the US debt ceiling.

According to the White House website, US President Joe Biden and speaker of the United States House of Representatives Kevin McCarthy have agreed to lift the debt ceiling.

When describing the agreement, Biden said that "not everyone will get what they want" and added that it was a compromise. It "prevents what could have been a catastrophic default, leading to an economic downturn, devastating retirement accounts, and the loss of millions of jobs," he claimed. Teams of negotiators completed the bill’s draft on Sunday, May 28, and then sent it to Congress, according to Biden. On May 31, according to McCarthy, the House of Representatives will vote on the paper.

A source says that the deal includes a two-year budget agreement. The agency's interlocutor claims that it calls for keeping non-defense spending at or near its existing level. According to the Financial Times and the Associated Press, who both cited a source familiar with the negotiations, spending will rise by 1% in 2025. Bloomberg notes that the federal debt ceiling will be increased until January 2025.