The debt-ceiling deal between President Joe Biden and House Speaker Kevin McCarthy would suspend the United States’ debt limit through 2025 to avoid a federal default while limiting government spending, but its details are unlikely to be popular with progressive Democrats or hard-right Republicans.
The Democratic president and Republican speaker are trying to win lawmakers over to the plan, announced Saturday, in time to avert a default that would shake the global economy. Congress will be scrutinising and debating the legislation, which also includes provisions to fund medical care for veterans, change work requirements for some recipients of government aid and streamline environmental reviews for energy projects.
McCarthy said the House will vote on the legislation on Wednesday, giving the Senate time to consider it before June 5, the date when Treasury Secretary Janet Yellen said the US could default on its debt obligations if lawmakers do not act in time.
Some hardline conservatives have expressed early concerns that the compromise does not cut future deficits enough, while Democrats have been worried about proposed changes to work requirements in programmes such as food stamps.
With the details of the deal – released on Sunday – now clear, here’s what’s in and out:
Two-year debt limit suspension, spending limits
The agreement would keep non-defence spending roughly flat in the 2024 fiscal year and increase it by one percent the following year, as well as suspend the debt limit until January 2025 – past the next presidential election.
The agreement would fully fund medical care for veterans at the levels included in Biden’s proposed 2024 budget blueprint, including a fund dedicated to veterans who have been exposed to toxic substances or environmental hazards. Biden sought $20.3bn for the toxic exposure fund in his budget.