US President Joe Biden and Republican Congressman Kevin McCarthy reached a tentative agreement to raise the federal government's debt ceiling of $31.4 trillion.
Yet the deal has been described in terms that it may not be absolute, and without any ceremony—a reference to the bitter substance of the negotiations, and the difficult path they have to pass through Congress before the United States runs out of money. to pay off its debts in early June.
"I just hung up on the president. After he wasted time and refused to negotiate for months, we've reached a deal on principle worthy of the American people," McCarthy wrote on Twitter.
"The deal would raise the debt limit for two years while capping spending during that period, and include some additional work requirements for programs for the poor," according to Reuters.
Earlier, Biden and McCarthy said they want to slow the growth of the U.S. debt, which is now roughly equal to the annual output of the country's economy.
Sources told Reuters that negotiators agreed to cap non-defense discretionary spending at 2023 levels for one year and increase it by 1% in 2025.
"After weeks of negotiations, we've come to an agreement in principle," McCarthy told reporters on Saturday night. "We still have a lot of work to do, but I think this is an agreement in principle that the American people deserve."
While the exact terms of the deal have not been released, McCarthy said, "It has historic spending cuts, subsequent reforms that will lift people out of poverty into the workforce, reins in government excess, and no new taxes [nor] new government programs."
He said the bill would be completed in writing and made available to the public on Sunday with a vote expected in the House of Representatives on Wednesday.
McCarthy must give members 72 hours to review the bill's final language before calling a vote on it.
Follow the latest news on Google News
