Washington: President Joe Biden And Speaker of the House Kevin McCarthy They have reached agreement in principle on legislation to increase the country’s borrowing power and avoid default.
Negotiators are now racing to finalize the text of the law. McCarthy said the House will vote on the legislation on Wednesday, giving the Senate time to consider it before the June 5 deadline to avoid the possibility of default.
While many details are unknown, both sides will be able to point to some victories. But some conservatives expressed early concerns that the deal does not sufficiently reduce future deficits, while Democrats have been concerned about proposed changes to labor requirements in programs such as food stamps.
A look at what’s in and out of the deal, based on what’s known so far:
Two-year debt increase, spending limits
The agreement would keep non-defense spending roughly flat in fiscal 2024 and increase it by 1% the following year, as well as provide a two-year increase in the debt limit — after the next presidential election in 2024. That’s according to a source familiar with the deal who provided details on condition of anonymity. his identity.
State of the Veterans
The agreement would fully fund Medicare for veterans at the levels included in the 2024 budget outline proposed by Biden, including a fund specifically for veterans who have been exposed to toxic substances or environmental hazards. Biden sought $20.3 billion for the Toxic Exposure Fund in his budget.
Work requirements
Republicans have proposed strengthening work requirements for healthy adults without dependents in some state assistance programs. It will bring more people into the workforce, they said, who will pay taxes and help support key entitlement programs, namely Social Security and Medicare.
Democrats have been fiercely critical of the proposed changes, saying they will result in fewer people being able to afford food or health care without actually increasing job participation.
House Republicans passed legislation that would create new work requirements for some Medicaid recipients, but that was left out of the final agreement.
However, the agreement will expand some work requirements for the Supplemental Nutrition Assistance Program, or SNAP, formerly known as Food Stamps. The agreement would raise the current work requirement age from 49 to 54, similar to the Republican proposal, but those changes would expire in 2030. At the same time, the White House said it would reduce the number of at-risk people of all ages who are subject to the requirements.
Acceleration of energy projects
The deal sets out changes to the National Environmental Policy Act that will designate a “single lead agency” for developing environmental reviews, hoping to streamline the process.
What is left out
Republicans have sought to overturn Biden’s efforts to forgive $10,000 to $20,000 in debt for nearly all borrowers who took out student loans. But the ruling was not a success for the Democrats. The budget agreement keeps Biden exempt from the student loan, though the Supreme Court will have the final say on the matter.
Conservatives dominate the Supreme Court 6-3, and the justices’ questions in oral arguments have raised doubts about the legality of Biden’s student loan plan. A decision is expected before the end of June.


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