United States: United States President Mr. Joe Biden has finalised an agreement with House Speaker Mr. Kevin McCarthy to raise the debt ceiling over two years until January 1, 2025, saying the deal is ready to move to Congress for a vote.
The Democratic president and Republican speaker spoke as negotiators rushed to draft and post the bill’s text to enable lawmakers to review compromises that are unlikely to be popular with progressive Democrats or hard-right Republicans. The two leaders hope they can secure sufficient votes before the June 5 deadline to avert a first-ever default by the federal government.
“Good news,” Mr. Biden declared on May 28 at the White House.
“The agreement prevents the worst possible crisis – a default – for the first time in our nation’s history. Takes the threat of a catastrophic default off the table,” the President added.
The deal follows weeks of heated negotiations between Mr. Biden and Republicans to avoid a default that could cause financial markets to freeze up and lead to an international financial crisis.
The US President stated that he expected Mr. McCarthy to have the necessary votes for the deal to pass.
The compromise announced recently includes spending cuts, but risks angering some lawmakers as they take a closer look at the concessions.
The 99-page bill will also claw back unused COVID-19 funds, speed up the permit process for some energy projects and include extra work requirements for food aid programs for poor Americans.
Senate Republican Leader Mitch McConnell applauded the agreement and called on the Senate to act swiftly to pass it without unnecessary delay once it has gone through the House.
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