In a critical development to address the impending debt ceiling crisis, Joe Biden and Speaker of the House Kevin McCarthy (R-CA) have reached a deal on the debt limit.
On Saturday night, The Gateway Pundit reported that Kevin McCarthy announced an “agreement in principle” with Joe Biden on a deal to raise the federal debt ceiling.
McCarthy posted to Twitter, “I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we’ve come to an agreement in principle that is worthy of the American people.” A vote in the House is expected Thursday, according to Majority Leader Steve Scalise (R-LA).
McCarthy spoke briefly at 9:10 p.m., saying the deal “has historic reductions in spending, consequential reforms that will lift people out of poverty into the workforce, rein in government overreach, there are no new taxes, no new government programs. There’s a lot more within the bill. We still have more work to do tonight to finish all the writing of it…”
The agreement, reached after weeks of intense negotiations, aims to prevent a potential financial catastrophe created by the Democrats.
While the bill is still being written, here are some of the reported details of the Biden-McCarthy agreement.
The DC swamp proposed the largest debt ceiling increase in our nation’s history, $4 trillion.
The agreement reportedly did not raise the debt ceiling but it extended the debt ceiling deadline until January 1, 2025.
This means that during the next recession in 2023-2024 if tax revenue declines and spending increases, they can borrow an unlimited amount of money for the spending spree to re-inflate the economy.
— Wall Street Silver (@WallStreetSilv) May 28, 2023
According to Rep. Matt Rosendale (R-MT), the new agreement has NO full elimination of 87,000 IRS agents, NO elimination of the IRA green energy subsidies, NO elimination of the student loan redistribution program, NO spending freeze at FY2022 levels.
But hey, we won’t have to talk about it again until after the 2024 elections so they think that’s good!
I think it’s a disaster!
— Matt Rosendale (@RepRosendale) May 28, 2023
Below are more details on the agreement from Rep. Chip Roy (R-TX):
THREAD: Turns out this chart is basically accurate. Will fill it in tomorrow more fully… but to best of our current understanding with NO text… 1) Debt ceiling set til 1/1/2025 – which means unknown debt increase – but $4 Trillion is a good estimate… (1/10) https://t.co/5WYaMNIbLQ
— Chip Roy (@chiproytx) May 28, 2023
- Debt ceiling set til 1/1/2025 – which means unknown debt increase – but $4 Trillion is a good estimate…
- Debt Ceiling “Deal” totally scraps the $131BB in cuts to return bureaucracy to pre-COVID levels in favor of what appears to be effectively flat spending (down or up a little) – at the bloated 2023 Omnibus spending level, jammed through in a rush in December
- Debt Ceiling “Deal” abandons work requirements for Medicaid
- Deal abandons our repeal of the so-called Inflation Reduction Act tax-credit crony giveaways – which Goldman Sachs says costs $1.2 Trillion.
- The deal abandons inclusion of the very powerful anti-regulatory REINS Act (which we just passed through House Judiciary as well) in favor of a form of administrative pay-go which is relatively toothless and/or able to be waived.
- The deal abandons full repeal of Biden’s unlawful student loan bailouts – forcing only a re-start to a small number while leaving in place $400 billion+ in loan forgiveness and punting our constitutional duty to the Court.
- The deal keeps full $80BB expansion of the IRS and the 87,000 employees it funds to target poor/minority 3-5x more – except for $1.9BB for this year.
- The deal does claw back $29BB remaining of the COVID unobligated funding which is used as part of the budget games.
- Does nothing for the border. Does nothing regarding pistol braces. Does nothing regarding Presidential overreach. And in many ways kills our leverage to get them through the appropriations process.
- Finally, again… this deal raises our debt ceiling an unlimited amount that is likely close to or over $4 Trillion.
Another tweet from Rep. Roy:
THREAD: There are members of the GOP claiming Democrats got nothing from the “deal.” Oh really? 1) An uncapped debt ceiling with an expiration date – worth approximately $4 trillion…? 2) basically no cuts – a freeze at bloated 2023 spending level? #DebtCeiling (1/3)
— Chip Roy (@chiproytx) May 28, 2023
…6) no REINS act statutory requirement for congress to approve huge regulations – just an “administrative” paygo that the administration will get to enforce? 7) No border security!! – & a deal allowing them to avoid policy riders in the fall… 8) more… (3/3) /end
— Chip Roy (@chiproytx) May 28, 2023
Here are more details from independent journalist Ed Krassenstein:
- The debt ceiling is raised for 2 years.
- Non-defense spending is essentially capped for 2024 and 2025.
- The age threshold for SNAP work requirements will increase from 49 to 54 years of age for adults who don’t have children.
- Work requirements are removed for homeless people and for veterans.
- Unspent COVID-19 relief money will be rescinded.
- Republicans get what they generally wanted with new work requirements in TANF for cash assistance recipients.
- Veterans’s medical care is protected.
- Cuts are made to the IRS funding in 2023.
- Payments must begin again for those with student loans, who had their loan payments paused due to COVID.
- Student loan borrowers will still be eligible to receive up to $20K in debt relief if they qualify (pending the current SCOTUS ruling).
Here are some of the reported details of the new debt limit deal between Biden and McCarthy.
– The debt ceiling is raised for 2 years.
– Non-defense spending is essentially capped for 2024 and 2025.
– The age threshold for SNAP work requirements will increase from 49 to 54 years… pic.twitter.com/Jbh6amNGS9— Ed Krassenstein (@EdKrassen) May 28, 2023
Sen. Rand Paul (R-KY) said the conservatives have been sold out once again.
Fake conservatives agree to fake spending cuts. Deal will increase mandatory spending ~5%, increase military spending ~3%, and maintain current non-military discretionary spending at post-COVID levels. No real cuts to see here.
Conservatives have been sold out once again!
— Rand Paul (@RandPaul) May 28, 2023
