Biden and McCarthy reach a deal to avoid default. Here’s what’s in it

President Biden and House Speaker Kevin McCarthy have reached a deal to avoid a government default and raise the U.S. debt ceiling.

Driving the news: The bill, released on Sunday evening, suspends the debt limit until January 1, 2025, and maintains nondefense spending for fiscal year 2024 while raising it by 1% in 2025.
* If passed, the measure would create new exemptions for certain groups from food stamp work requirements and recover unspent pandemic funding from the American Rescue Plan and CARES Act.

What’s next: The House will vote on the bill after a 72-hour review period, and if approved, it will move to the Senate for further consideration.
* Senators were briefed on the plan on Sunday evening, with Senate Majority Leader Chuck Schumer warning that they should be prepared to vote on the measure as early as Friday.

Context: The bipartisan deal comes after weeks of negotiations as the U.S. government crept closer to the date when it would run out of money to pay its bills, with the “X date” – when the U.S. would run out of money – set for June 5 by Treasury Secretary Janet Yellen.

View original article on NPR

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