May 28, 2023 – 10:14 AM
After several months of negotiations, US President Joe Biden and Republican House Speaker Kevin McCarthy succeeded Saturday night in reaching an agreement on suspending the $31.4 trillion debt ceiling, which would avoid bankruptcy of the US government, he wrote. Reuters. Without the agreement, the US government would not have been able to fulfill its June 1 commitments.
The announcement of the agreement was not formal, which reflects the mood of the previous negotiations. I spoke with the president on the phone recently. After months of wasting time and refusing to negotiate, we now have an agreement in principle befitting the American people,” Kevin McCarthy tweeted.
Joe Biden called the agreement an important step forward. “The current agreement is a compromise, which means that not everyone gets what they want,” he said.
According to the agreement, the debt ceiling will be suspended until January 2025, in addition, spending will be restricted in the 2024 and 2025 budgets, unused Covid funds will be withdrawn, and additional requirements will be introduced for food aid programs for those in need.
