Biden, Republicans Reach Debt Ceiling Deal But Needs Congressional Approval to Prevent Disastrous Default – WOWO 92.3 FM | 1190AM

WASHINGTON (AP) – A “deal in principle” between President Joe Biden and House Speaker Kevin McCarthy would raise the nation’s legal debt ceiling, but Congress is just days away from approving a package that includes spending cuts. There is only one day left and a debt crisis will be averted. A potentially disastrous US default.

The compromise, announced late Saturday, risks angering both Democrats and Republicans as they begin to unveil concessions. Negotiators agreed to some of the Republican demands. Labor Requirements for Food Stamp Recipients House Democrats called him a non-starter. But negotiators have failed to cut the overall spending cuts that Republicans had hoped for.

It will need support from both parties to get congressional approval in advance. The government is expected to default on its US debt on June 5th. Lawmakers aren’t expected to return to work from Memorial Day weekend by Tuesday at the earliest, and McCarthy will follow the rule that any bill be submitted to lawmakers 72 hours before a vote. I promised.

White House officials were scheduled to brief House Democrats on a video call on Sunday.

The Democratic president and the Republican chairman met on the phone Saturday night and reached an agreement. country and world People are watching and waiting for a resolution to the political conflicts that threaten the U.S. and global economy.

“A deal is a compromise, meaning not everyone can get what they want,” Biden said in a statement. “That’s the ruler’s responsibility.”

Biden said the deal “is good news for the American people because it avoids what could have been a catastrophic default that would have led to an economic recession, destroyed retirement accounts and the loss of millions of jobs. It is.”

“We still have a lot of work to do,” McCarthy said in a brief speech at the Capitol.

But he added, “I believe this is an agreement in principle that the American people deserve.”

Once the deal outline is in place, a legislative package could be drafted and shared with lawmakers in time for a House vote as early as Wednesday and a Senate vote later next week.

At the heart of the compromise is a two-year budget deal that would raise the debt ceiling for two years in exchange for flat spending in 2024 and a 1% increase in 2025, alleviating political volatility in the upcoming presidential election. will get over it.

Republicans pushed hard for an agreement to impose harsher working conditions on government aid recipients, achieving some of what they wanted, but not all. The agreement would raise the current working age requirement for able-bodied adults without children from 49 to 54. Biden was able to secure exemptions for veterans and the homeless.

The two countries also agreed to an ambitious review of federal permits to facilitate the development of energy projects.Instead, this agreement will make changes to the landmark National Environmental Policy Act It will designate a “single lead agency” to produce environmental reviews in hopes of streamlining the process.

The deal was closed after that Treasury Secretary Janet Yellen He told Congress that the U.S. could default on its debt by June 5, four days later than previously expected, if lawmakers don’t act in time. Removing the country’s debt ceiling, which currently stands at $31 trillion, would allow the country to borrow even more to pay the bills it already incurs.

With McCarthy holding a small Republican majority in the House, far-right conservatives may resist a deal that is insufficient to cut spending. By compromising with the Democrats for his vote, he risks losing his popular support, making it a career-testing moment for the new chairman.

Both sides have suggested that one of the major impediments was the Republican effort to expand labor requirements for recipients of food stamps and other federal aid programs, a long-standing Republican goal. has been strongly opposed by Democrats. The White House said the Republican proposal was “cruel and pointless.”

Biden said Medicaid labor requirements are not a start. He appeared potentially open to negotiating changes to food stamps, now known as the Supplemental Nutrition Assistance Program (SNAP), despite opposition from Democratic lawmakers.

The American people and the world watched with trepidation at a policy on the brink of negotiation that threatened to throw the U.S. and world economies into turmoil and undermine global confidence in the nation’s leadership.

With their next Social Security payment next week, anxious retirees were already making contingency plans for leaked checks.

Missing action by the new deadline “would cause serious hardship for American families, undermine America’s global leadership position, and call into question our ability to defend our national security interests,” Yellen said. Stated.