Biden and McCarthy Reach Agreement on Debt Ceiling Negotiations... Vote Scheduled for the 31st

McCarthy "A Historic Victory for Americans"
Biden Urges Passage of Bill
Persuading Hardliners in Both Parties Remains a Challenge

[Image source=Yonhap News]

U.S. President Joe Biden and House Speaker Kevin McCarthy reached a final agreement on the debt ceiling increase on the 28th (local time). While the urgent crisis to avoid a U.S. default has been averted, strong opposition from hardliners in both parties leaves the passage in Congress uncertain.

President Biden announced at the White House, "There is good news," adding, "I spoke with Speaker McCarthy, and we have reached a bipartisan budget agreement." He emphasized, "This agreement will prevent the worst crises in our nation's history, including the first-ever default, recession, devastated retirement accounts, and millions of job losses," urging both chambers of Congress to pass the bill.

The agreement came just eight days before the U.S. national default deadline, which was postponed from the 1st to the 5th of next month. As the federal government's debt reached the limit, the White House had been demanding an unconditional increase, while the Republican majority in the House set large-scale government spending cuts as a precondition.

After several rounds of debt ceiling negotiations, President Biden and Speaker McCarthy reached a principle agreement on raising the limit following a marathon 1 hour and 30-minute phone call the day before. That evening, the working negotiation teams coordinated the draft bill and finalized the agreement. Under the terms, the debt ceiling will be raised for two years until 2024, with fiscal year 2024 spending frozen and a maximum 1% increase in the 2025 budget. The deal includes reclaiming unused COVID-19 funds, expediting approval procedures for certain energy projects, and adding work requirements for beneficiaries of food assistance programs for low-income households.

[Image source=Yonhap News]

The variable lies in opposition within both the Republican and Democratic parties. Not only hardline Republicans but also progressive Democrats oppose the agreement between President Biden and Speaker McCarthy, making internal persuasion a major challenge. Republicans control the House by 222 to 213, while Democrats hold the Senate by 51 to 49.

President Biden urged both chambers to pass the bill, stating, "Speaker McCarthy will be able to secure enough votes in the Republican-led House to pass the bill." Responding to progressive Democrats' claims that the agreement will worsen hunger among vulnerable groups, he dismissed them as "absurd." Speaker McCarthy also praised the agreement, saying it controlled White House spending. He described it as "a historic victory befitting the American people," adding, "We set limits to prevent the president from spending recklessly."

However, Ralph Norman, a member of the 'Freedom Caucus,' a hardline Republican group that has strongly criticized the debt ceiling agreement, tweeted late at night calling the tentative deal "crazy" and said, "I will not vote to bankrupt our country." He emphasized, "Americans deserve better treatment." Republican Congressman Ken Buck also harshly criticized the deal, saying he was "shocked by the debt ceiling surrender."

Congress is expected to hold a 72-hour review period before voting on the debt ceiling increase agreement on the 31st.

This content was produced with the assistance of AI translation services.