White House, Republicans reach tentative debt ceiling deal


A free daily digest of the biggest news stories of the day - and the best features from our website
Thank you for signing up to TheWeek. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.
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.
Continue reading for free
We hope you're enjoying The Week's refreshingly open-minded journalism.
Subscribed to The Week? Register your account with the same email as your subscription.
Sign up to our 10 Things You Need to Know Today newsletter
A free daily digest of the biggest news stories of the day - and the best features from our website
Justin Klawans is a staff writer at The Week. Based in Chicago, he was previously a breaking news reporter for Newsweek, writing breaking news and features for verticals including politics, U.S. and global affairs, business, crime, sports, and more. His reporting has been cited on many online platforms, in addition to CBS' The Late Show with Stephen Colbert.
He is also passionate about entertainment and sports news, and has covered film, television, and casting news as a freelancer for outlets like Collider and United Press International, as well as Chicago sports news for Fansided.
-
Should you fire your financial adviser? 4 signs it's time to say goodbye.
The Explainer Breakups are never fun, but you have to protect your wallet
By Becca Stanek Published
-
The daily gossip: Man arrested in connection with shooting of Tupac Shakur, an OceanGate movie is in the works, and more
Feature The daily gossip: September 29, 2023
By Brendan Morrow Published
-
What to expect from an El Niño winter
The Explainer Things might be different thanks to this well-known weather phenomenon
By Devika Rao Published
-
Why is the government on the brink of a shutdown?
Today's Big Question GOP infighting is bringing the country to a standstill, but even Republicans aren't entirely sure why
By Rafi Schwartz Published
-
'A teetering democracy of gerontocrats?'
Instant opinion Opinion, comment and editorials of the day
By Harold Maass Published
-
'Labour risks making private schools a conclave for the super-rich'
Instant Opinion Opinion, comment and editorials of the day
By The Week Staff Published
-
House GOP's 1st Biden impeachment hearing was 'an unmitigated disaster'
Speed Read House Republicans kicked off their effort to impeach President Biden, and there is general agreement it did not go well
By Peter Weber Published
-
Will Democrats save Kevin McCarthy's speakership?
Today's Big Question On the eve of a likely government shutdown, the speaker is left with no good choices
By Joel Mathis Published
-
'Companies can't make a profit and can't keep employees safe'
Instant opinion Opinion, comment and editorials of the day
By Harold Maass Published
-
'America's conservative party has collapsed'
Instant opinion Opinion, comment and editorials of the day
By Harold Maass Published
-
'Biden must be embarrassed he didn't think of this first'
Instant opinion Opinion, comment and editorials of the day
By Harold Maass Published