Washington– On Sunday, President Joe Biden and House Speaker, Kevin McCarthy struck a deal to extend the debt limit to 2025. The agreement concludes that until Jan. 1, 2025, the $31.4 trillion dollars will be suspended, which can later be resolved through payments of said debt. This would allow the government to continue borrowing money so it can pay off its bills in the meantime. The bill must first pass through the House and Senate before the June 5 deadline to avoid a debt default.
What Now?
With the Fiscal Responsibility Act of 2023 in place, the vote on Wednesday will be by the House. A simple majority of 218 may help this bill progress to the next step before it goes over to the Senate on Friday. Finally, the deal will move to the President’s desk, where he can sign off on it.
However, a group of more than 20 conservative Republicans publicly announced they would oppose the deal. Chip Roy of Texas, a member of the Rules Committee, expressed his opposing views.
“Speaker McCarthy should pull this bad bill down. We should stop taking this bill up right now,” said Roy.
What Does the Debt Ceiling Bill Consist of?
If passed, the deal would suspend the US debt limit for a brief time. Non-defense spending would rise by 1% in 2025. The staggering $30 billion dollars in unspent emergency aid for the Covid-19 pandemic will be returned. In the deal, Biden agreed to new work requirements for food stamps and the Temporary Aid for Needy Families program.
This entire deal would limit discretionary spending to 1% growth in 2025. Technically, this is a budget cut because the 1% growth rate is projected to be slower than the inflation rate.
It is estimated by the White House that the agreement will yield $1 trillion in savings over the next coming decade. With the deal ending in 2025, the next president after Biden will deal with the debt load once the suspension ends.
Republican Primila Jayapal acknowledged her concern with the bill after the term ends. “When it comes time to write these appropriations bills, there will be some very difficult choices to make,” said Jayapal.
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