Republicans and Democrats struck a compromise over the long weekend in Washington that could end the debt dispute. The solution is to ensure that the US federal government does not run out of money during the first few days of June.
Democratic President Joe Biden described the deal as “good news” for the American people in a statement at the White House on Sunday. This can prevent a huge economic crisis. A negotiator for Republican Speaker Kevin McCarthy, Speaker of the House of Representatives, spoke of the “most conservative spending package” in the past 20 years.
The compromise, 99 pages long, provides for a suspension of the debt limit until early 2025, i.e. after the next presidential election. This means that the US debt mountain, currently $ 31,500 billion, will continue to rise.
Federal government spending is capped, albeit at a high level. Biden agreed to cut some budget items; the IRS tax agency is not receiving all of the promised new funds in the tens of billions. There can be no fundamental restructuring of the budget.
Left-wing Democrats and right-wing Republicans were therefore initially angry about the compromise reached. McCarthy’s party friends are angry that he made such far-reaching concessions in the negotiations with Biden. “Democrats got everything they wanted with this bill and no longer have to defend their reckless spending policies in the run-up to the 2024 election,” Congressman Ken Buck wrote on Twitter.
I listened to Speaker McCarthy earlier tonight outlining the deal with President Biden and I am shocked by the debt ceiling buyout.
The bottom line is that the US will be $35 trillion in debt by January 2025.
That is completely unacceptable.
— Representative Ken Buck (@RepKenBuck) May 28, 2023
Left-wing Democrats, on the other hand, are dissatisfied that Biden even entered into negotiations with McCarthy. They also complain that the deal does not include tax increases.
The compromise will be presented to the House of Representatives on Wednesday, subject to approval by the preliminary advisory committee. Republicans have a slim majority in the Grand Chamber; should the Republican right wing rebel, McCarthy would need the votes of Democratic lawmakers.
In the Senate, in which the Democrats set the tone, there is a majority for the deal. The package must be adopted by 5 June at the latest. On that day, Treasury Secretary Janet Yellen announced before the weekend that the federal government would run out of liquid assets. (aargauerzeitung.ch)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
