Speaker Kevin McCarthy and President Biden struck a tentative deal on Saturday to raise the debt limit in exchange for cutting spending.
The duo agreed to the terms in a phone call after weeks of negotiation. Mr. McCarthy is set to brief House GOP lawmakers on the package, which extends the federal debt limit past the June 5th deadline and caps spending growth.
“We still have a lot of work to do. But I believe this is an agreement in principle that’s worthy of the American people,” said Mr. McCarthy, California Republican. “It has historic reductions in spending, consequential reforms that will lift people out of poverty and into the workforce, and rein in government overreach. There are no new taxes, no new government programs.”
Mr. Biden said the agreement reduces spending, but does not impact “critical programs for “working people.”
“The agreement represents a compromise, which means not everyone gets what they want,” said Mr. Biden. “That’s the responsibility of governing.”
The agreement is poised to raise the current $31.4 trillion debt limit until after the 2024 presidential election. It claws back more than $60 billion in unspent coronavirus relief and cuts $10 billion from the IRS.
Domestic spending will be kept flat for the upcoming fiscal year, while defense spending is set to grow by more than $26 billion. After this year, the growth of federal spending will be capped at 1% through 2025.
Mr. McCarthy and Mr. Biden have further agreed to streamline the federal permitting process for new energy projects. They’ve also agreed to expand work requirements for recipients of food stamps and direct cash payments.
Outside of being required to work at least 20 hours per week, childless food stamps recipients under the age of 54 will face new limits on how long they can utilize the program. The deal does expand access to food stamps, however, for veterans and the homeless.
It presents a compromise for both Mr. McCarthy and Mr. Biden. House Republicans initially had sought a $130 billion cut to non-defense spending this year and a decade’s worth of spending caps.
Mr. McCarthy had also sought to cancel Mr. Biden’s student loan forgiveness program and rescind more than $200 billion in green energy tax credits passed by Democrats last year. Both demands were sidelined amid opposition from the White House.
“The agreement protects my and Congressional Democrats’ key priorities and legislative accomplishments,” said Mr. Biden.
The breakthrough came after weeks of negotiations. Negotiators for both sides stressed the agreement was “in principle” and obstacles could still emerge as it’s converted into legislative text.
The deal will have to garner the support of a large number of Republicans and potentially Democrats to pass the narrowly divided House. Mr. McCarthy said the full text of the legislation would be released on Sunday and a vote on the bill would take place early next week.
The schedule ensures that House lawmakers will have at least 72 hours to digest the deal before having to cast a vote.
• Haris Alic can be reached at halic@washingtontimes.com.
Please read our comment policy before commenting.