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.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
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 Hollywood news. Justin has also freelanced for outlets including Collider and United Press International.
-
Reporter on leave over alleged RFK relationship
Speed Read New York magazine political reporter Olivia Nuzzi admitted to having a personal relationship with her subject
By Peter Weber, The Week US Published
-
Hezbollah vows revenge for Israel pager bombs
Speed Read Hassan Nasrallah said Israel will be punished for explosive attacks; meanwhile, Israel carries out more strikes
By Peter Weber, The Week US Published
-
CNN: NC candidate said he was 'Black Nazi' on porn site
Speed Read North Carolina GOP governor nominee Mark Robinson made a series of disturbing comments on a message board
By Peter Weber, The Week US Published
-
Trump assassination attempt: do former presidents need more protection?
Today's Big Question Secret Service director says 'paradigm shift' needed after second Trump attack sparks calls for more resources
By The Week UK Published
-
What has Kamala Harris done as vice president?
In Depth It's not uncommon for the second-in-command to struggle to prove themselves in a role largely defined by behind-the-scenes work
By Theara Coleman, The Week US Published
-
The killing of an American in the West Bank could strain US-Israeli relations
The explainer Is the growing outcry from the Biden administration over the IDF killing of American citizen Aysenur Ezgi Eygi a prelude to changes in US foreign policy in the region?
By Rafi Schwartz, The Week US Published
-
How might the GOP's Afghanistan report impact the presidential race?
Today's Big Question House Republicans are blaming the Biden administration, but the White House is pushing back
By Justin Klawans, The Week US Published
-
Who will win the 2024 presidential election?
In Depth Election year is here. Who are pollsters and experts predicting to win the White House?
By Justin Klawans, The Week US Published
-
Harris, Biden campaign together at union rally
Speed Read The sitting president and Democratic presidential nominee joined forces in battleground state Pennsylvania
By Peter Weber, The Week US Published
-
'Declines haven't happened in most places'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
What will Joe Biden's legacy be?
Today's Big Question History is likely to be kind to outgoing president, but his time in office could still be defined by what happens in November election
By The Week UK Published