McCarthy and Biden Reach “Agreement in Principle” on Debt Ceiling

Just before 9 p.m. EDT Saturday, Speaker of the House Kevin McCarthy (R-CA) 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…”

Biden and McCarthy reportedly spoke twice on Saturday, including for ninety minutes this evening.

McCarthy is standing by the 72 hour rule, meaning a vote on the House will take place no earlier than Thursday as the bill still needs to be written. Treasury Secretary Janet Yellen on Friday gave a new deadline of June 5, conveniently giving room for negotiations and time to pass the House and Senate.

Reports on the bill and from McCarthy’s conference call with House Republicans posted to Twitter by Punchbowl News reporters:

“DETAILS OF THE AGREEMENT, per source w/direct knowledge: —Two-year approps deal —No budget caps after 2025—Work requirements: no changes to Medicaid —Phases in & then sunsets (in 2030) SNAP time limits to people up to age 54 —WH pushed to reduce # of ppl subject to time limits…MORE … WHAT DEMS ARE SAYING: The deal keeps non-defense spending at around FY2023 levels. No budget caps after 2025.”

More to come…

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