Biden’s Debt Ceiling Agreement Ready for US Congress Vote

Biden confirmed that the debt ceiling agreement is ready to be voted on in the US Congress.

The US President and the Republican leader of the House of Representatives, Kevin McCarthy, agreed last night to avoid a catastrophic default.

President Joe Biden reported Sunday that a final bipartisan deal to raise the US debt ceiling is now headed to Congress, where he urged “both chambers to pass that deal.”

“I think it’s a really important step forward,” Biden said in a brief appearance before reporters at the White House. “It takes the threat of a catastrophic default off the table,” he added.

FILE PHOTO: U.S. President Joe Biden (R) stands with House Speaker Kevin McCarthy, R-Kevin McCarthy, inside the White House in Washington, U.S., May 22, 2023.

The president and House Speaker Kevin McCarthy agreed last night on legislation to increase the country’s debt capacity and avoid a default.

Here are the key points of the agreement that must still be approved by both chambers next Wednesday:

TWO-YEAR DEBT INCREASE, SPENDING LIMITS.

The deal would hold spending at the defense margin roughly flat in fiscal 2024 and increase it by 1% the following year, as well as provide a two-year debt limit increase past the 2024 presidential election, according to a person familiar with the deal who offered details on condition of anonymity.

VETERANS’ HEALTH CARE

The deal will fully cover veterans’ health care at levels included in Biden’s 2024 budget draft, including a fund for veterans exposed to toxic substances or environmental hazards. Biden called in his spending plan for $20.3 billion for the fund associated with toxic exposure.

WORK REQUIREMENTS

Republicans proposed increasing work requirements for able-bodied adults without dependents in some entitlement programs. They claimed that would bring more people into the workforce, which in turn would pay taxes and help bolster entitlement programs such as Social Security and Medicare.

Democrats have flatly rejected those changes and claim they would make fewer people able to afford food or health care, without actually increasing the number of workers.

Congressional Republicans had passed a bill that would tighten employment requirements for some Medicaid recipients, but that was eventually dropped from the deal.

However, the language would expand work requirements for the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps. The deal would extend the age of the current work requirement from 49 to 54, similar to the Republican proposal, although those changes would expire in 2030. And the White House said that at the same time, it would reduce the number of vulnerable people of all ages subject to those requirements.

In this image released by the U.S. Army, two combat helicopters from the 1st Battalion, 25th Aviation Regiment fly near Fort Wainwright, Alaska, June 3, 2019.

ACCELERATING ENERGY PROJECTS

The agreement implements changes to the National Environmental Policy Act that would designate “a single agency” to do environmental assessments, in hopes of streamlining the process.

WHAT WAS LEFT OUT

Republicans wanted to repeal Biden’s efforts to forgive $10,000 to $20,000 in debt for all student loan holders. But the provision was a red line for Democrats. The budget deal upholds Biden’s debt relief, although the Supreme Court will have the final say on the issue.

The Supreme Court is dominated 6-3 by conservatives, and questions from those justices at oral arguments showed skepticism about the legality of Biden’s student loan plan. A decision is expected before the end of June.