The US is approaching a “debt” agreement: what does it entail
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The White House and Republicans are nearing an agreement to raise the national debt ceiling and cap federal spending for two years.
It is reported Bloomberg citing people familiar with the matter.
In recent days, the parties have narrowed their differences in negotiations, but a final agreement has not yet been reached. The parties still have not agreed on the size of the upper limit.
Under the terms of the new deal, defense spending will be allowed to increase by 3% next year, in line with President Joe Biden’s budget request.
The deal would also include measures to modernize the nation’s electric grid for renewable energy, a key climate goal, and speed up permitting for pipelines and other fossil fuel-related projects supported by the Republican Party.
The deal would cut $10 billion from the $80 billion increase in the Internal Revenue Service budget that Biden won as part of his inflation-reduction law.
The deal now taking shape would be much more limited than the initial proposal by Republicans, who called for raising the national debt ceiling by next March in exchange for 10 years of spending restraint.
If a deal is reached in the near future, the most likely vote in the House of Representatives will take place on Tuesday. The Senate would then have to quickly vote and send the document to Biden’s desk by June 1, when the U.S. could run out of operating and debt-paying money, leading to a default.
House member Garrett Graves, one of the negotiators, described progress as “slow.” He said the White House strongly rejects Republican demands to add work criteria to eligibility criteria for Medicaid and other welfare programs.
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