On Saturday, President Biden announced that a tentative budget agreement between him and Speaker Kevin McCarthy (R-Calif.) had been reached which would increase the debt ceiling and stop the U.S. from defaulting on its debt.
In his statement, he added that this agreement included a lot of compromises and that neither side would get exactly what they wanted. He however noted that this was the “responsibility of governing.” Biden added that the deal is going to be voted on in the following days and it would include spending cuts but at the same time would protect many crucial programs for those working in the U.S. economy and helping it grow. He further claimed that the agreement reached would protect the priorities and legislative accomplishments of his administration and Congressional Democrats.
Biden proceeded to tout how important this agreement is for the American people as it would stop the country from defaulting which could have had “catastrophic” results, including allowing the country to enter an economic recession, damaging retirement accounts, and leading to higher unemployment rates.
The agreement between the President and the Speaker was reached during a phone conversation on Saturday. It included a final agreement on government spending and would increase the debt ceiling only a few days before the expected day of default, which was June 5.
The agreement was reached in principle and will require bipartisan support to pass through the House and Senate. Once passed the debt ceiling would be increased for two years, and non-defense spending would remain consistent to 2023 levels in 2024.