Following several rounds of talks, US President Joe Biden and Republican House Speaker Kevin McCarthy have reached a deal that would clear the way for Congress to raise the debt ceiling. The deal is likely going to draw the ire of lawmakers of both parties due to the concessions that were made.
On Saturday, Biden and McCarthy reached a tentative deal that would allow Congress to raise the country’s debt ceiling ahead of the warned deadline of when the United States runs out of funds and goes into default. The deal, however, is bound to draw the ire of lawmakers from both Democratic and Republican Parties due to the concessions that were made in order to come to the agreement.
Under the deal, the debt ceiling would be raised for two years while capping spending over that time. The deal was made “in principle” in a phone conversation between Biden and McCarthy that lasted 90 minutes. Biden later issued a statement, saying that the agreement reached with the Republican Speaker “represents a compromise, which means not everyone gets what they want.”
Biden said the agreement was “good news for the American people because it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost.”
Speaking at the Capitol, McCarthy told reporters that the deal reached with Biden was “worthy of the American people.” McCarthy said he expects the legislation to be done on Sunday before speaking with Biden again and holding a vote on the deal by Wednesday.
McCarthy also predicted on Sunday that his fellow House Republicans, who currently hold the chamber’s majority, would support the deal reached with the Democratic president. Biden later expressed confidence that the legislation to lift the debt ceiling would pass Congress to avoid a government default. Biden also said there were no points of contention in the deal when pressed by reporters.
Members of the hardline Republican Freedom Caucus said they plan to try and stop the agreement from passing the House in the upcoming vote on Wednesday. However, McCarthy dismissed the threats of opposition, saying that a majority of the House Republican caucus supported the deal. McCarthy added that bipartisan support is needed for the legislation to get to Biden’s desk.
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