The tentative agreement to raise the government’s current $31.4 trillion borrowing limit was reached over the weekend after several weeks of tense negotiations — but the drama is far fr…
by President Joe Biden and GOP House Speaker Kevin McCarthy to raise the US debt ceiling and prevent a potentially catastrophic default.
The debt ceiling, also known as debt limit, is the law that limits the amount of money the US government can borrow to cover costs — including paying federal employees, as well as Social Security and Medicare. The deal came together after Treasury Secretary Janet Yellen told Congress last week that the US could no longer keep within the limit and could default on its debt obligations by June 5.In addition to raising the debt limit until 2025, the agreement includes a string of spending cuts demanded by Republicans while boosting it for defense and veterans.
Under the agreement, it would fully fund medical care for veterans at the levels included in Biden’s proposed 2024 budget blueprint. The deal came together after Treasury Secretary Janet Yellen told Congress last week that the US could no longer keep within the limit and could default on its debt obligations by June 5.A default could cause financial markets to freeze up and potentially cause an international financial crisis.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Debt Ceiling Bill Will End Student Debt Pause Within 60 Days, McCarthy SaysSpeaker of the House Kevin McCarthy said the bill would end the pause on federal student debt payments 60 days after the bill was passed, accelerating the June 30 window for the pause to end.
Read more »
Biden, McCarthy agree to talk on debt crisis, speaker says negotiators 'closer to an agreement'President Joe Biden and House Speaker Kevin McCarthy agreed to speak Saturday evening as they race to strike an agreement that would resolve the looming debt crisis ahead of a June 5 deadline to avert a catastrophic U.S. default. Biden spoke earlier in the day with the Democratic leaders in Congress to discuss the status of the talks, according to two people familiar with the situation and granted anonymity to discuss it. The Republican speaker gathered top allies behind closed doors at the Capitol as negotiators pushed for a deal that would raise the nation’s borrowing limit and avoid a catastrophic default, while also making spending cuts that House Republicans are demanding.
Read more »
Biden GOP agree to 2 year budget-debt ceiling deal, work requirements for food aidPresident Joe Biden and House Speaker Kevin McCarthy have reached an “agreement in principle” to resolve the looming debt crisis.
Read more »
Biden GOP agree to 2 year budget-debt ceiling deal, work requirements for food aidPresident Joe Biden and House Speaker Kevin McCarthy have reached an “agreement in principle” to resolve the looming debt crisis.
Read more »
AP source: Biden, McCarthy reach 'agreement in principle' to raise debt ceiling as default loomsPresident Joe Biden and House Speaker Kevin McCarthy have reached an “agreement in principle” to resolve the looming debt crisis. That's according to a person familiar with the situation, who spoke on condition of anonymity because they were not authorized to speak publicly on the matter. They spoke by phone earlier in the evening as they raced to prevent a catastrophic debt default. With the outline of an agreement, a legislative package can be drafted in time for votes in Congress next week. That's ahead of a projected June 5 federal default. Negotiators have wrangled over a deal that would also making spending cuts that House Republicans are demanding.
Read more »
House Republicans, White House reach deal in principle to raise debt limit, sources tell ABC NewsHouse Republicans have reached an agreement to raise the nation's debt limit in principle with the White House, sources tell ABC News.
Read more »