Biden signs deal to raise US debt ceiling
- June 4, 2023
- 0
US President Joe Biden signed the agreement on Saturday. reached between the White House and the Republicans raise the debt ceiling until 2025, thereby preventing the suspension of
US President Joe Biden signed the agreement on Saturday. reached between the White House and the Republicans raise the debt ceiling until 2025, thereby preventing the suspension of payments in the country.
“We intend to continue working build the strongest economy in the world“, the president tweeted, accompanying a video of him signing the agreement in the Oval Office.
With Biden’s ratification, the country will avoid a default that would have occurred as early as Monday if Congress had not reached an agreement raise the debt ceiling, which sets a limit on how much money the US can borrow and can only be raised or stopped by legislative action.
In an address to the nation Friday night, Biden noted that suspending payments ‘would be a disaster’ and sent the country into a recession.
An agreement to raise the debt ceiling in exchange for some government spending cuts was reached over the weekend in ad hoc negotiations. Between the White House and Republicans in the House of Representativesled by Kevin McCarthy.
The measure suspends the debt ceiling for the next two years, until the November 2024 presidential election. In particular, suspends the current $31.4 trillion debt limit until January 1, 2025.
They will cut some of the new funds earmarked for public finances.
Instead, an agreement reached over the weekend between the White House and Republicans in the lower house provides, among other things, limits on spending on programs funded by Congress in areas such as health careeducation, justice or environmental protection.
In parallel cuts some of the new funds earmarked for the state treasury reassign them to non-defense facilities and provides for the resumption of payments by university students of their accumulated debt.
According to this agreement, non-defense spending to remain the same in fiscal 2024 and will increase by 1% in fiscal year 2025.
Besides, toughens job requirements to access social benefitssuch as food stamps, and will cancel the unspent $28 billion that was earmarked for pandemic relief programs.
Approval of the agreement in Congress and subsequent signature of the President it was extremely important for the country not to default on the public debtafter the debt ceiling, the legal limit on the amount of money the US can borrow to meet its obligations, was reached last January.
According to EFE
Source: Aristegui Noticias
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