US President Joe Biden and Republican House Speaker Kevin McCarthy reached an agreement in principle that included raising the federal government’s debt ceiling by two years to prevent debt defaults, ending the months-long crisis. terms reflecting bitter content. For the negotiations and the difficult path that the agreement will take in Congress before the United States defaults on its debt payments in early June.
Biden called the agreement in a statement “an important step forward” and said: “The agreement is a consensus, which means that not everyone gets what they want. This is the responsibility of the government.”
“Just got off the phone with the president,” McCarthy tweeted. “After wasting time and refusing to negotiate for months, we have reached an agreement that basically the American people deserve.”
The agreement raises the debt ceiling for two years and reduces spending for the same period. It also includes a refund of unused COVID-19 funds and an accelerated approval process for certain energy projects, as well as some additional business terms for food aid programs for poor Americans.
If the agreement is passed in Congress before the Treasury can find the money to cover all of its obligations, the country will avoid a destabilizing debt default. The Treasury Department warned on Friday that this could happen if the debt ceiling is not raised by June 5.
