Biden and Republicans reach agreement in principle to avoid debt default

by time news

2023-05-28 03:50:00

US President Joe Biden and Republican congressmen reached an agreement in principle on Saturday to raise the country’s debt ceiling, in a crucial first step towards eliminating the threat of a disastrous default on June 5.

Party leaders now face a race against time to strengthen the deal in Congress, with far-right Republicans and progressive Democrats criticizing concessions made to seal the deal.

After weeks of tense negotiations in Congress and the White House, the agreement would allow the government to raise the country’s debt ceiling, preventing the world’s largest economy from being unable to honor its commitments and entering into default.

The deal also helps appease members of the House of Representatives who have demanded significant reductions in Biden’s domestic spending schedule as a condition of avoiding a default.

“Just got off the phone with the president,” tweeted House Majority Leader Kevin McCarthy late on Saturday. “After he wasted time and refused to negotiate for months, we reached an agreement in principle that is worthy of the American people.”

McCarthy said he would return to talks with Biden tomorrow and would oversee the final draft of the bill, which must pass Congress. The House of Representatives “will vote on Wednesday,” she said.

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