Biden, McCarthy reach tentative US debt ceiling deal

World 12:13 28.05.2023
U.S. President Joe Biden and top congressional Republican Kevin McCarthy reached a tentative deal to suspend the federal government's $31.4 trillion debt ceiling on Saturday evening, ending a months-long stalemate, EDnews reports citing Reuters.
However, the deal was announced without any celebration, in terms that reflected the bitter tenor of the negotiations and the difficult path it has to pass through Congress before the United States runs out of money to pay its debts in early June.
"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 tweeted.
Biden called the deal "an important step forward" in a statement, saying: "The agreement represents a compromise, which means not everyone gets what they want. That’s the responsibility of governing."
The deal would suspend the debt limit through January of 2025, while capping spending in the 2024 and 2025 budgets, claw back unused COVID funds, speed up the permitting process for some energy projects and includes some extra work requirements for food aid programs for poor Americans.
After months of back-and-forth, the tentative agreement came together in a flurry of calls. Biden and McCarthy held a 90-minute phone call earlier on Saturday evening to discuss the deal, McCarthy briefed his members later in the evening, and the White House and the House leader spoke afterward.
"We still have more work to do tonight to finish the writing of it," McCarthy told reporters on Capitol Hill. McCarthy said he expects to finish writing the bill on Sunday, then speak to Biden and have a vote on the deal on Wednesday.
Biden and McCarthy have to carefully thread the needle in finding a compromise that can clear the House, with a 222-213 Republican majority, and Senate, with a 51-49 Democratic majority -- meaning it will need bipartisan support before the president can sign it.
Negotiators have agreed to cap non-defense discretionary spending at 2023 levels for one year and increase it by 1% in 2025, a source familiar with the deal said.
"It has historic reductions in spending, consequential reforms that will lift people out of poverty into the workforce, rein in government overreach - there are no new taxes, no new government programs," McCarthy said.
The deal will avert an economically destabilizing default, so long as it succeeds in passing it through the narrowly divided Congress before the Treasury Department runs short of money to cover all its obligations, which it warned on Friday will occur if the debt ceiling issue was not resolved by June 5.
Republican Representative Bob Good, a member of the conservative House Freedom Caucus, tweeted that he was hearing the deal would raise the debt by $4 trillion, and added "IF that is true, I don’t need to hear anything else. No one claiming to be a conservative could justify a YES vote."
North Carolina's Dan Bishop described the deal earlier Saturday as "utter capitulation in progress. By the side holding the cards."
One high-ranking member of the House Freedom Caucus said they were in the process of gauging member sentiment, and unsure what the vote numbers might be.
Republicans say they want to cut spending to slow the growth of the U.S. debt, which is now roughly equal to the annual output of the country's economy. Biden and Democrats have pushed to increase taxes on the wealthy and companies to shrink the debt while increasing spending on programs like free community college.
The long standoff on raising the debt ceiling spooked financial markets, weighing on stocks and forcing the United States to pay record-high interest rates in some bond sales. A default would take a far heavier toll, economists say, likely pushing the nation into recession, shaking the world economy and leading to a spike in unemployment.
Biden for months refused to negotiate with McCarthy over future spending cuts, demanding that lawmakers first pass a "clean" debt-ceiling increase free of other conditions, and present a 2024 budget proposal to counter his budget issued in March.
Two-way negotiations between Biden and McCarthy began in earnest on May 16.
The work to raise the debt ceiling is far from done. McCarthy has vowed to give House members 72 hours to read the legislation before bringing it to the floor for a vote.
That will test whether enough moderate members support the compromises in the bill to overcome opposition from both hard-right Republicans and progressive Democrats to reach a simple majority vote.
Then it will need to pass the Senate, where it will need at least nine Republican votes to succeed. There are numerous opportunities in each chamber along the way to slow down the process.


Latvia starts installing anti-tank barriers on border with Russia - VIDEO

News line

Ilham Aliyev expresses condolences to President of Vietnam
Ilham Aliyev expresses condolences to President of Vietnam
18:05 23.07.2024
Ukraine's foreign minister embarks on visit to China
17:49 23.07.2024
Iraqi government tells institutions to use term ‘banned PKK’
17:29 23.07.2024
Northern Cyprus Considers Autonomous Republic Status Within Turkiye
17:00 23.07.2024
PACE left out as Azerbaijan gears up for snap parliamentary elections
16:45 23.07.2024
Latvia starts installing anti-tank barriers on border with Russia - VIDEO
16:30 23.07.2024
Over 220 congressmen and 23 governors back Harris for president
16:10 23.07.2024
France "Left-Wing" Leader Melenchon Calls for Withdrawal From NATO
15:47 23.07.2024
Harris campaign nets $100 million since Sunday
15:00 23.07.2024
Azerbaijan weather forecast for July 24
Azerbaijan weather forecast for July 24
14:01 23.07.2024
Baku hosts meeting between Azerbaijani and Chinese military education experts
13:43 23.07.2024
Tesla to use humanoid robots next year
Tesla to use humanoid robots next year
13:16 23.07.2024
President Ilham Aliyev: We attach great importance to our traditional ties of friendship and cooperation with Egypt
12:52 23.07.2024
Russia and Iran finish preparing comprehensive co-op agreement
12:02 23.07.2024
President Ilham Aliyev congratulates Egyptian counterpart
President Ilham Aliyev congratulates Egyptian counterpart
11:45 23.07.2024
Azerbaijan invites 20 international organizations to observe upcoming parliamentary elections
11:27 23.07.2024
Kazakhstan's President to attend COP29 Climate Conference in Baku
10:58 23.07.2024
Harris has support of enough Democratic delegates to become party’s presidential nominee - SURVEY
10:39 23.07.2024
RFK Jr. pitched job in White House as he considered endorsing Trump
10:25 23.07.2024
Iraqi Kurdistan officials receive COP29 invitation from Azerbaijan
10:09 23.07.2024
Israel's Knesset votes to designate UNRWA as terrorist organization
09:53 23.07.2024
Somali forces kill dozens of militants following attack
09:42 23.07.2024
State Department: US continues to work to try to reach an agreement between Baku and Yerevan
09:30 23.07.2024
MFA: Military aid to Armenia to serve destructive activities in region
09:00 23.07.2024
Candidacy of 16 persons for Azerbaijan parliamentary elections registered
21:00 22.07.2024
Palestinian death toll in Gaza Strip exceeds 39,000
19:30 22.07.2024
Robert Bauer of Bundesliga joins Azerbaijan's Neftchi FC
Robert Bauer of Bundesliga joins Azerbaijan's Neftchi FC
19:05 22.07.2024
NATO puts over 500,000 troops on high alert amid escalating tensions
18:46 22.07.2024
480 observers register at Azerbaijan’s CEC
18:19 22.07.2024
Global Media Forum ends in Shusha
18:00 22.07.2024
Biden's withdrawal from the election race: Can Harris give Democrats a second chance? - EXCLUSİVE
17:30 22.07.2024
"Al-Jazeera" Delegation Engages with Hikmet Hajiyev at Shusha Global Media Forum - PHOTOS
16:35 22.07.2024
The Third Plenary Session of the 20th CPC Central Committee: A Visionary Path to Sustainable Development
The Third Plenary Session of the 20th CPC Central Committee: A Visionary Path to Sustainable Development
15:28 22.07.2024
IEPF President Umud Mirzayev Highlights 2nd Shusha Global Media Forum on Social Media - PHOTOS
15:16 22.07.2024
UK ambassador congratulates Azerbaijani media representatives on National Press Day
UK ambassador congratulates Azerbaijani media representatives on National Press Day
14:40 22.07.2024
Shusha hosts final panel as part of Global Media Forum
14:15 22.07.2024
Azerbaijan weather forecast for July 23
Azerbaijan weather forecast for July 23
14:00 22.07.2024
EU considers mandatory military service amid rising tensions with Russia
13:15 22.07.2024
ICRC representatives visit Karabakh separatists detained in Azerbaijan
12:59 22.07.2024
Study on French colonialism presented at 2nd Shusha Global Media Forum
12:38 22.07.2024