US debt limit agreed in principle

US President Joe Biden announced that they have reached an agreement in principle with the Speaker of the House of Representatives, Kevin McCarthy, on the debt limit.

The White House and the Republicans agreed on principle, days before the country’s cash shortage ran out, such as measures taken to limit the debt limit in the United States. In his written statement, Biden said they reached a debt limit agreement in principle with House Speaker McCarthy tonight.

President Biden said the deal is an important step that reduces spending while protecting critical employee programs and growing the economy for everyone.

PREVENTS THE SITUATION THAT MAY CAUSE Breach

Pointing to the fact that the deal upholds his and the Democrats’ core priorities, Biden said the deal represents a compromise, meaning not everyone gets what they want.

Noting that the deal is good news for the American people, Biden said: “Because it prevents a situation that could lead to a catastrophic default, an economic recession, the collapse of retirement accounts and the loss of millions of jobs.” he performed the assessment of it.

Informing that the negotiating teams will put the legislative text in writing and the agreement will go to the House of Representatives and the Senate, Biden called for the agreement to be approved immediately.

‘WE HAVE AGREED ON THE PRINCIPLE’

At the press conference on the subject, McCarthy claimed that he had two telephone conversations with US President Joe Biden today, saying: “After weeks of negotiations, we reached an agreement in principle. We still have a lot of work to do, but I think this is a deal worthy of the American people.” he said.

Saying the deal includes historic spending cuts and major reforms that will lift people out of poverty into the workforce, McCarthy said new taxes and government programs aren’t included in the deal.

Noting that there is much more to the settlement bill, McCarthy said he has work to do today to get it in writing.

McCarthy, who appreciated the work of Republican representatives Garrett Graves and Patrick McHenry, who participated in the budget cap negotiations, said that he would inform the deputies about the current situation.

McCarthy said he will speak to President Biden again tomorrow afternoon after the bill is finished drafting and he meets with the White House, adding that he hopes to publish the text tomorrow and put it to a vote on Wednesday.

IT IS PROJECTED TO INCREASE THE DEBT LIMIT TO 2 YEARS

According to reports in the US press, the debt limit is expected to be increased by 2 years as part of the agreement reached after lengthy negotiations between the White House and the Republicans.

The deal, which is aimed at cutting spending on some federal programs, is expected to introduce new work requirements for some state aid recipients, including food aid programs.

The agreement provides new limits on how long certain food stamp buyers under age 54 can take advantage of the program. On the other hand, it is planned to expand access to food vouchers for veterans and the homeless.

Within the scope of the agreement in question, it is intended to recover the aid money provided during the epidemic but not spent.

It is claimed that the agreement will limit discretionary spending for two years, but that these limits will apply to defense spending differently from the rest of the federal budget.

The bill, which contemplates raising the borrowing limit in accordance with the agreement, is expected to be voted on in congress within days.

Yellen warned that if the borrowing limit is not increased there may be a cash shortage as of June 5

The US reached the debt limit of $31.4 trillion on January 19 and the US Treasury began taking extraordinary measures to avoid exceeding the limit.

The Treasury Department warned that these extraordinary measures could run out by early June.

In a letter to House Speaker Kevin McCarthy on Friday, Treasury Secretary Janet Yellen predicts that the Treasury will not have enough resources to meet its obligations unless Congress raises or suspends the cap on the debt before June 5, based on available data.

The US Treasury’s cash level fell to $38.8 billion as of May 25, the lowest level since 2017 as debt limit negotiations continued. (AA)