Over the weekend, President Biden and House Speaker Kevin McCarthy announced a deal to raise the government’s debt limit, helping the nation avoid debt and economic turmoil.

Biden, McCarthy and their allies view the deal as wins for their respective sides. McCarthy (R-Bakersfield) in particular praises the deal despite Biden’s past and continued refusal to negotiate the debt ceiling. speak

on

Speaking from the White House on Sunday, Biden said the deal avoids bankruptcy while protecting “our hard-earned and historic economic recovery.”

Here’s what’s included in the deal:

A two-year deal, non-defense spending (mostly) stays the same

In exchange for temporary tax changes, McCarthy agreed to renew

the

raising the debt ceiling by two years, allowing the government to continue borrowing above its $31.4 trillion existing debt. The extension ensures that Biden does not have to fight this battle again until after the next presidential election. The deal also keeps the level of non-defense spending “roughly the same as 2023 levels in 2024,” a White House official said. By 2025, these spending levels and defense spending will increase by 1%.

Relief funds for COVID-19

The deal is worth $30 billion

unused

funds from emergency relief packages for COVID-19. The Biden administration can keep $5 billion to fund housing assistance and COVID-19 treatments and vaccines

for uninsured Americans, according to a White House source. IRS funding cuts

Last year, through the Inflation Reduction Act, Democrats poured $80 billion into the Internal Revenue Service, which allowed the agency to significantly modernize its operations and become more aggressive in collecting taxes from large corporations and wealthy Americans. Democrats touted the funding increase as a way to help pay for Biden’s signing agenda to lower prescription drug costs and invest in clean energy.

Republicans had hesitated

a

funding increase for the service, claiming, without evidence, that middle-income Americans could see an uptick in auditing.

McCarthy successfully raised $

2021.4

billion of this money gradually, with much of the money being reallocated to non-defense discretionary spending.

Democrats don’t like the proposed IRS rebate in the deal, arguing it will benefit wealthy people and ultimately increase the deficit, but many prefer it to looming entitlement cuts

low-income poor

people or other elements of Biden’s agenda, including climate change mitigation. And while the cut falls far short of many Republicans’ goals, conservative lawmakers may be able to sell it as a grassroots victory given the prominence of the issue on Fox News and other conservative media outlets.

No more deferral of student loan payments

the deal did not go well with Biden’s $400

–

billion in student loan forgiveness, it prohibits its government from unilaterally suspending student loan payments after the end of August.

Federal borrowers have not had to pay

down to

their student loans since then-President Trump suspended payments in March 2020 amid the economic fallout from the COVID-19 pandemic.

Biden has repeatedly extended this suspension and announced the limited cancellation program last August. This executive order soon faced legal challenges, particularly from the right.

One of the challenges in February reached the U.S. Supreme Court, and conservative judges during oral arguments cast doubt on the legality of Biden’s plan. A ruling on Biden’s program is expected sometime this summer.

SNAP Job Requirements While t

The bill gradually introduces the requirements for temporary work

childless adults

to age 54, according to a White House official. Current law requires

childless

adults up to 49 years

years old

to meet job requirements.

Homeless Americans, Veterans and

adults before

in the foster program

s (up to 24 years

) are exempt from these changes. The low-income food aid program updates end in 2030, after which Congress can keep or amend the changes.

Times writer Noah Bierman contributed to this report. report