May 30, 2023
WASHINGTON, May 30 (QNA) – The New York Times has revealed the full legal text of the agreement between House Speaker Kevin McCarthy and US President Joe Biden to suspend the debt limit.
The centerpiece of the agreement remains a two-year suspension of the debt ceiling, which limits the amount the government can borrow, the paper said. The government will continue to borrow as long as Congress passes a deal by June 5, when the Treasury Department claims that suspending that cap, currently set at $31.4 trillion, will deplete U.S. funds and be able to pay the bill by.
Republicans have demanded a range of policy concessions from Biden in exchange for ending the cap. Chief among them are limits on the growth of federal discretionary spending over the next two years. According to the New York Times, Biden also agreed to new work requirements for certain food stamp recipients and a temporary assistance program for needy families.
The bill would reduce so-called nondefense discretionary powers in fiscal year 2024, including domestic law enforcement, forest management, scientific research, and more. This would cap all discretionary spending at a growth rate of 1% in 2025, which is expected to be slower than the rate of inflation, effectively cutting the budget.
The legislative text suggests that non-defense discretionary authority, other than veterans’ programs, would be reduced to spending levels around last year’s level in 2024. But White House officials say a series of side deals with Republicans, including one related to funding the Internal Revenue Service, could allow actual funding to approach this year’s levels.
The White House estimates the deal will reduce discretionary spending and save $1 trillion over 10 years.
The Wall Street Journal also reported that the House is not scheduled to vote on the bill until Wednesday, in line with McCarthy’s agreement to give lawmakers 72 hours to read the bill before voting on it. It is said that it is part of the
The bill’s first trial will take place on Tuesday, when it goes to the House Rules Committee, which serves as the gatekeeper for bills before the House.
Two conservative Republicans on the committee, Rep. Chip Roy of Texas and Rep. Ralph Norman of South Carolina, have already announced their opposition to the deal, the paper said. Nevertheless, there was still the possibility of obtaining appropriate support for the transition through the Rules Committee that would consider today’s legislation.
Mr. McCarthy never lost more than four House Republican votes until he needed Democratic support to pass the bill.
Meanwhile, House Minority Leader Hakeem Jeffries told CBS News that Republicans have committed to at least 150 votes in favor of the deal. Democrats would need to make up the balance to reach the 218-vote threshold normally required for passage.
Since the deal was signed late Saturday, White House staffers have held separate calls with more than 60 House Democrats, during which they said the compromise would keep domestic spending roughly at current levels. The Wall Street Journal said, citing people familiar with the agreement. .
Some Democrats have aired support for the deal, but the newspaper predicts that if the bill passes the House on Wednesday, it could take several days to pass in the Senate. This raises the risk that the bill will be passed even after the June 5 deadline to prevent defaults.
A strong bipartisan vote in the House would likely smooth the path to early passage in the Senate, sending the bill to Biden for signature, according to congressional aides. (QNA)
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