After weeks of tense negotiations, President Joe Biden and House Republicans reached an agreement Agreed in principle Raise the debt ceiling and marginal costs.
The drama is by no means over. Congressional leaders in both parties must convince their constituents enough to vote for a deal that includes provisions that lawmakers on each side of the aisle do not support.
Full details of the deal are not yet available. The information made public on Saturday evening showed some discrepancies. The text of the bill is scheduled to be released on Sunday.
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Here’s what we know about the deal, based on a fact sheet circulated by House Republicans and a source familiar with the negotiations.
Raising the credit limit: The agreement extends the credit limit for two years.
Controls Non-Defense Expenditure: Under the deal, non-defense spending would remain relatively flat in fiscal year 2024 and increase by 1% in fiscal year 2025, after some unspecified changes in funding allocations, according to the source.
After fiscal year 2025, the funding targets will remain in place but will not be implemented, the source said.
The House GOP fact sheet says non-defense discretionary spending would be restored to fiscal 2022 levels and overhead federal spending would be limited to 1% annual growth for the next six years.
The deal calls for spending $886 billion on defense, $121 billion on veterans’ health care, and $637 billion on other non-defense programs. CNN.
The Debt ceiling bill House Republicans passed a measure last month that would return discretionary spending to fiscal 2022 levels and then limit growth in spending to 1% for a decade. Defense costs will be covered.
Protects veterans’ medical care by: The deal would maintain full funding for veterans health care and increase support for the PACT Act’s toxic exposure funding to nearly $15 billion in fiscal year 2024, the source said.
A House GOP fact sheet says veterans’ health care will be fully funded.
Expanding Job Requirements: The contract should be extended temporarily Job requirements For some adults who receive food stamps.
Currently, childless, able-bodied adults between the ages of 18 and 49 can only receive food stamps for three months every three years unless they work at least 20 hours per week or meet other criteria. According to the source, the contract will raise the age to 54. The GOP fact sheet says it applies to people up to age 55.
However, the deal would expand exemptions to veterans, the homeless and those on the Supplemental Nutrition Assistance Program, or SNAP, as food stamps are formally known.
And all changes will end by 2030.
The agreement would also make changes to current work requirements in the Temporary Assistance for Needy Families program.
House Republicans would not introduce work requirements into Medicaid, which they called for in their debt ceiling bill.
Withdraw unspent Covid-19 relief funds: According to a House GOP fact sheet, the deal would cancel unencumbered funding from the Covid-19 relief packages Congress passed to respond to the pandemic.
Estimates vary as to what roughly $4.5 trillion in relief remains.
Cut Internal Revenue Service funding: The House GOP says the deal would repeal the entire fiscal year 2023 personnel funding request, which would go to new IRS agents, the fact sheet says.
House Republicans have decided to repeal approx $80 billion in IRS funding It is contained in the De-Inflation Act passed by Democrats last year. GOP lawmakers argue the money will be used to hire an army of new agents to audit Americans, but the agency says it will be used to support operations, modernize customer service technology and help taxpayers.
Resume Student Loan Repayment: According to a House GOP fact sheet, the deal requires borrowers to repay their student loans.
The moratorium, which has been in place since the start of the Covid-19 pandemic, will end by the end of the summer, as the Biden administration has already announced, another source familiar with the debt ceiling negotiations said.
However, the deal would maintain Biden’s plan to deliver Loan relief up to $20,000 For eligible borrowers, the source said. This action is currently pending Supreme CourtIt is expected to form the government in the coming weeks.
Climate and Clean Energy Actions: White House talking points say the deal will leave no changes to the climate and clean energy provisions of the Inflation Reduction Act.
House Republicans tried to repeal the law Clean energy tax credits and subsidies.
This story has been updated with additional information.