Democratic Speaker Joe Biden and Republican Speaker of the House Kevin McCarthy have reached an agreement in principle to raise the state debt ceiling and limit federal spending, according to several media outlets. The agreement covers the next two years and there will be presidential elections in 2024.
The two talk the details again on Sunday, according to those media outlets. The final text of the agreement is expected to be published on Sunday and parliament will vote on it on Wednesday or Thursday at the latest.
The deal revolves around the idea that the state’s huge debt load may exceed the previously set ceiling of $31.4 trillion, but that the federal government will not spend more next year than it is now. In 2025 it will be possible to spend a maximum of 1 percent more, according to the American media. McCarthy tells highly critical GOP members that this deal is a good one, because there will be no new taxes and no major new government programs.
Huge pot
Looking for money to fill the gaps, a huge amount of money that Biden’s government had set aside for the fight against the coronavirus would also be available for other purposes. Biden’s “Inflation Reduction Act” (2022) plans would also be cut, and admission requirements for some federal social services would be tightened at the insistence of Republicans.
The debt ceiling has been in place since 1917, but since 2001 the US national debt has soared. Since then, the state has spent an average of $1 trillion more than it receives in revenue, and the limit has risen above $31 trillion.
Source: BNR
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