Slowly, a debt ceiling deal appears to be imminent in the US. The White House is negotiating the final details of the deal with Republican lawmakers on Friday. The deal will include raising the debt ceiling, which currently stands at $31.4 trillion.
By raising the ceiling, the debt ceiling will be raised for two years. Within this, a spending limit will be set for different sectors. There will be exceptions in the field of defense and veterans, a government source told Reuters news agency.
However, $10 billion needs to be cut from an $80 billion budget increase at the US tax authorities. The initial hike was led by US President Joe Biden as part of the Inflation Reduction Act. Republicans have warned of a barrage of policing and audits, while Democrats said the hike would pay for itself through less tax evasion.
Investments in the electricity grid and fossil fuel projects
The deal would also include a measure to upgrade the country’s electricity grid to accommodate renewable energy, a key climate goal. On the other hand, the Republicans have been able to force the acceleration of permits for fossil fuel projects.
The agreement that now seems to be on the way is much softer than the first plan presented by the Republicans. The party first called for raising the debt ceiling only until March next year, with a ten-year investment ceiling in return. Conservatives in the House protested the idea of ​​a small deal on Thursday.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
