Legislative text in progress?
An agreement is emerging in the US debt dispute
5/26/2023 5:26 AM
Time is short, bankruptcy is imminent: In the United States, Democrats and Republicans can resolve their dispute over the debt ceiling in due course. Reportedly, negotiations are progressing. There are compromises.
In the United States, according to an insider, President Joe Biden’s administration, along with Republican representatives in the House of Representatives, appears to be close to reaching an agreement on raising the debt ceiling.
A government official familiar with the talks said late Thursday (local time) that the two sides had agreed to raise the current debt ceiling of $31.4 trillion for two years. At the same time, however, spending across the board—except the military and veterans—should be limited.
The source said the White House is considering scaling back its plan to increase funding for the Internal Revenue Service (IRS) to hire more auditors and target wealthy Americans. The New York Times reported that negotiators for the Democrats and Republicans have begun drafting a legal text. Accordingly, some details are still open.
“The only way forward is through a bipartisan agreement,” US President Biden told reporters on Thursday. “I believe we will come to an agreement that allows us to move forward and protect the hardworking Americans in this country.” Before the talks began, House Speaker Kevin McCarthy said, “We knew it wasn’t going to be easy.”
In Washington, there has been discussion about raising the federal debt ceiling from the current $31.4 trillion for weeks. To take this step, the Biden Democrats need the support of the Republicans, who have a majority in the House of Representatives. Without a deal, the United States faces bankruptcy, which experts say could have dire consequences for the global economy.