Speaker Kevin McCarthy’s (R-CA) office released the full text of the compromise debt ceiling bill late Sunday, teeing up a likely Wednesday vote on its passage.
The bill, dubbed the Fiscal Responsibility Act of 2023, will suspend the debt ceiling for roughly two years in exchange for a slew of spending clawbacks and other reforms. Treasury Secretary Janet Yellen most recently projected that the government has until June 5 before it could start running dry on cash to meet its obligations if no debt limit hike occurs.
BIDEN AND MCCARTHY’S TENTATIVE DEAL RAISES DEBT CEILING UNTIL 2025
“The American people elected House Republicans to stop the out-of-control inflationary spending that has broken family budgets. Today, we secured a historic series of wins worthy of the American people,” McCarthy, Majority Leader Steve Scalise (R-LA), Majority Whip Tom Emmer (R-MN), and Chairwoman Elise Stefanik (R-NY) said in a joint statement.
Both sides announced they achieved a tentative breakthrough on the monthslong impasse Saturday and staff quickly begin working to draft up the text of the bill shortly thereafter. McCarthy has vowed to give his members at least 72 hours to parse through it.
As part of the deal, non-defense and non-veteran discretionary spending growth will be effectively kept down until 2024 before increasing by roughly 1% in 2025.
Other provisions include rescinding unspent COVID-19 funds, reducing the planned IRS expansion, adding stricter work requirements to Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP), as well as permitting reform.
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The United States first bumped up against its $31.4 trillion debt limit back in January and the Treasury Department has been deploying “extraordinary measures” to keep the money flowing. President Joe Biden still maintains his position that the debt ceiling deliberations and budget were distinct.
“You want to try to make it look like I made some compromise on the debt ceiling — I didn’t. I made a compromise on the budget,” Biden said Sunday.
