White House, Republicans reach tentative debt ceiling deal


The White House reached a tentative deal with Republicans on Saturday night to raise the debt ceiling for two years, thus avoiding a catastrophic default.
President Biden tweeted that the deal "is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone." Biden added that the agreement "represents a compromise, which means not everyone gets what they want."
House Speaker Kevin McCarthy (R-Calif.) tweeted that the two sides have "come to an agreement in principle that is worthy of the American people." McCarthy also tweeted that the deal reached was a "responsible debt limit agreement that stops Democrats' reckless spending, claws back unspent COVID funds, blocks Biden's new tax schemes, and much, much more."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
All of the details have yet to be hammered out, but McCarthy told reporters that the full outline of the new budget would be available on Sunday. The budget was finally agreed to after months of back-and-forth talks between the two sides.
Treasury Secretary Janet Yellen said Friday that the deadline for raising the debt ceiling had been extended to June 5, bumping it back four days from the initial June 1 cutoff date. In a letter to Congress, Yellen estimated that June 5 would have been the last day that the Treasury would have enough funds to satisfy the U.S. government's obligations. The government is scheduled to make an additional $92 billion in payments, Yellen estimated, including Social Security and Medicare payouts totaling $36 billion, which the debt ceiling increase will now allow it to do.
Even as a potential default loomed, President Biden was optimistic that a deal would be reached. Departing Friday for a Memorial Day weekend at Camp David, Biden told reporters, "It's very close, and I'm optimistic," in regards to a compromise.
Updated May 27, 2023: This article has been updated to reflect the debt ceiling deal.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other news. Justin has also freelanced for outlets including Collider and United Press International.
-
5 editorial cartoons about ICE raids
Cartoons Political cartoonists take on ICE raids, harvesting Big Macs for Donald Trump, and what to do when Stephen Miller shows up at the front door
-
Grilled radicchio with caper and anchovy sauce recipe
The Week Recommends Smoky twist on classic Italian flavours is perfect to grill, drizzle and devour
-
What we know about Iran's nuclear programme
In the Spotlight The global nuclear watchdog has declared Iran in breach of its non-proliferation obligations for the first time in 20 years
-
Trump's LA deployment in limbo after court rulings
Speed Read Judge Breyer ruled that Trump's National Guard deployment to Los Angeles was an 'illegal' overreach. But a federal appellate court halted the ruling.
-
Marines, National Guard in LA can detain Americans
speed read The troops have been authorized to detain anyone who interferes with immigration raids
-
Trump vows 'very big force' against parade protesters
Speed Read The parade, which will shut down much of the capital, will celebrate the US Army's 250th anniversary and Trump's 79th birthday
-
Smithsonian asserts its autonomy from Trump
speed read The DC institution defied Trump's firing of National Portrait Gallery Director Kim Sajet
-
Trump sends Marines to LA, backs Newsom arrest
speed read California Gov. Gavin Newsom is filing lawsuits in response to Trump's escalation of the federal response to ICE protests
-
Musk: What did he achieve in Washington?
Feature Elon Musk leaves his government job but not after bruising his image, slashing aid and firing thousands
-
Trump foists National Guard on unwilling California
speed read Protests erupted over ICE immigration raids in LA county
-
Supreme Court lowers bar in discrimination cases
speed read The court ruled in favor of a white woman who claimed she lost two deserved promotions to gay employees