Biden Says 'Good News For America' As President, Kevin McCarthy Agree On Tentative Debt Deal To Avert 'Ca
The months-long wrangling over the debt ceiling is finally coming to an end, potentially averting an economic catastrophe.
What Happened: President Joe Biden and House Speaker Kevin McCarthy (R-Calif) have reached a budget agreement in principle, the White House announced in a statement released late Saturday.
The agreement represents a compromise, which means not everyone gets what they want. That's the responsibility of governing, Biden said in a statement. The president also touted the development as good news for the American people, given it will prevent a catastrophic default that has the potential to cause an economic recession, the devastation of retirement accounts and the loss of millions of jobs.
Deal Terms: The tentative agreement will likely lift the debt limit for two years, The Wall Street Journal reported, citing people familiar with the matter. The non-defense spending for the fiscal year 2024 will likely be capped at levels for the fiscal year 2023, before being lifted by 1% in the fiscal year 2025.