The Republican-controlled House voted 314-117 to send the legislation to the Senate, which must enact the measure and get it to President Joe Biden’s desk before a Monday deadline, when the government is expected to federal run out of money to pay your bills.
Biden hopes to have the law on his table in time to avoid a default that would cripple the US economy and destabilize global financial markets.
The measure, a compromise between Biden and House Speaker Kevin McCarthy, drew opposition from 71 hardline Republicans. Normally, that would be enough to block partisan legislation, but 165 Democrats backed the measure and carried it through. Republicans control the House by a narrow 222-213 majority.
No threat of default
The legislation suspends – in essence, temporarily eliminates – the federal government’s borrowing limit until January 1, 2025. This deadline allows Biden and Congress to put this politically risky issue aside until after the November 2024 presidential election.
It would also cap some public spending over the next two years, speed up the permitting process for certain energy projects, recover unused COVID-19 funds, and expand work requirements for food aid programs to new recipients. Hardline Republicans wanted deeper cuts and tougher reforms.
What does the agreement say?
The project, called Fiscal Responsibility Lawwill suspend the US debt ceiling until January 1, 2025after the presidential elections scheduled for November 2024.
the deal cut some expenses next fiscal year and imposes a spending cap of 1% for fiscal year 2025but it does not touch large parts of the budget, including the Social Security and Medicare. It also has provisions for speed up energy projects.
After including these Republican proposals, the government deficit will be reduced by about 1.5 trillion dollars over the next decade.
“Continuing Washington’s spending addiction is irresponsible and simply wrong. For the first time, we started to turn the ship“, commented the Republican leader and forger of the agreement, Kevin McCarthy.
Some members of his party believe that has made too many concessions to Bidenand they are questioning his leadership, although he has indicated that “I don’t want to be on the wrong side of history” and has been confident to maintain it.