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."
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.
-
How the War Department became the Department of Defense – and back againIn Depth In 1947 President Harry Truman restructured the US military establishment, breaking with naming tradition
-
Sudoku hard: December 8, 2025The daily hard sudoku puzzle from The Week
-
Codeword: December 8, 2025The daily codeword puzzle from The Week
-
Trump tightens restrictions for work visasSpeed Read The length of work permits for asylum seekers and refugees has been shortened from five years to 18 months
-
Supreme Court revives Texas GOP gerrymanderSpeed Read Texas Republicans can use the congressional map they approved in August at President Donald Trump’s behest
-
Boat strike footage rattles some lawmakersSpeed Read ‘Disturbing’ footage of the Sept. 2 attack on an alleged drug-trafficking boat also shows the second strike that killed two survivors who were clinging to the wreckage
-
Trump boosts gas cars in fuel economy rollbackspeed read Watering down fuel efficiency standards is another blow to former President Biden’s effort to boost electric vehicles
-
Hegseth’s Signal chat put troops in peril, probe findsSpeed Read The defense secretary risked the lives of military personnel and violated Pentagon rules, says new report
-
Trump pardons Texas Democratic congressmanspeed read Rep. Henry Cuellar was charged with accepting foreign bribes tied to Azerbaijan and Mexico
-
GOP wins tight House race in red Tennessee districtSpeed Read Republicans maintained their advantage in the House
-
Trump targets ‘garbage’ Somalis ahead of ICE raidsSpeed Read The Department of Homeland Security will launch an immigration operation targeting Somali immigrants in the Minneapolis-St. Paul area
