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      US debt ceiling: Republican hard-right vows to ‘do everything in our power’ to oppose bill

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      Members of the hard-right House Freedom Caucus have attacked the proposed spending cuts in the debt ceiling bill as woefully inadequate, and vowed to oppose the legislation when it hits the floor.“We had the time to act, and this deal fails – fails completely,” Representative Scott Perry of Pennsylvania, chair of the Freedom Caucus, said on Tuesday. “We will do everything in our power to stop it and end it now.”The House is expected to hold a final vote on the bill on Wednesday, while other members of the Freedom Caucus continue to denounce the compromise brokered by the Republican speaker, Kevin McCarthy, and President Joe Biden over the weekend.The compromise bill, formally named the Fiscal Responsibility Act, would suspend the debt ceiling until 2025, allowing the US to avoid a default that could reap devastating consequences on the American economy. The treasury secretary, Janet Yellen, has warned that the federal government will be unable to pay its bills starting on 5 June unless Congress takes action.In addition to the debt ceiling suspension, the bill includes government spending cuts and expanded work requirements demanded by McCarthy.“There has been a lot of hard work and a lot of late nights that have gone into changing the spending trajectory in this town,” Steve Scalise, the House majority leader, told reporters at the Capitol on Tuesday night. “For once in a long, long time, Washington is actually going to spend less money next year than it is this year, and that’s a reform that all of us can support.”Republicans on the House rules committee voted late on Tuesday to advance the bill, clearing the way for a final vote on Wednesday.During that hearing, two Freedom Caucus members who sit on the panel, Chip Roy of Texas and Ralph Norman of South Carolina, attempted to block the legislation from advancing, but they were outnumbered by their colleagues. The final vote in the rules committee was 7-6 to advance the bill, with four Democrats joining Roy and Norman in opposing the measure.“The Republican conference right now has been torn asunder,” Roy said ahead of the hearing. “Not one Republican should vote for this deal. It is a bad deal.”But the Republican chair of the rules committee, Tom Cole of Oklahoma, defended the bill as the party’s best possible option with Democrats in control of the White House and the Senate.“Today’s bill is a product of compromise that reflects the realities of a divided government,” Cole said at the hearing. “In a true negotiation, you always get less than you want and give up more than you’d like.”Despite reassurances from McCarthy and his allies, it remains unclear how many House Republicans will support the proposal. In addition to the Freedom Caucus, some of the more centrist members of the House Republican conference like representatives Nancy Mace of South Carolina and Wesley Hunt of Texas said they would vote against the bill.Dan Bishop of North Carolina, a member of the Freedom Caucus, predicted that most of the House Republican conference would oppose the legislation, forcing McCarthy to rely on Democrats to pass the bill.“This is a career-defining vote for every Republican,” Bishop said Tuesday. “This bill, if it passes, must pass with less than half of the Republican conference.”The House Democratic leader, Hakeem Jeffries, underscored the reality that Republicans must provide most of the 218 votes needed to get the bill approved.“This is an agreement that, at their insistence, they negotiated with the administration,” Jeffries said. “It’s our full and complete expectation that they are going to produce at least 150 votes.”Some House Democrats also appeared conflicted over the compromise measure on Tuesday, bemoaning the proposed spending cuts while emphasizing the crucial need to increase the government’s borrowing limit before 5 June.“There are some pros to the bill. The chief one is that it raises the debt limit to 2025 and ensures that we avoid a Republican-led catastrophic default,” Pramila Jayapal, chair of the Congressional Progressive Caucus, said on Tuesday.“I don’t want to minimize the challenges with the bill. There will be real harmful impacts for poor people and working people,” she added.Jayapal said her team was in the process of conducting a whip count to assess where progressive members stand on the debt ceiling bill, but it appears certain that the legislation will win bipartisan support in the House, as the center-left New Democrat Coalition has endorsed the proposal.If the bill passes the House, it will move on to the Senate, where lawmakers will have only a few days to approve the proposal before the 5 June default deadline. Even if McCarthy’s compromise can become law, the speaker’s troubles may be just beginning.Members of the Freedom Caucus, some of whom initially resisted McCarthy’s speakership bid in January, toyed with the idea of ousting him depending on the outcome of Wednesday’s vote.Representative Matt Gaetz of Florida told Newsmax on Tuesday, “If a majority of Republicans are against a piece of legislation, and you use Democrats to pass it, that would immediately be a black-letter violation of the deal we had with McCarthy to allow his ascent to the speakership, and it would likely trigger an immediate motion to vacate.” More

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      US debt ceiling deal: House rules committee debates bill amid criticism on both sides – as it happened

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      From 3h agoThe House rules committee has started debating the debt ceiling bill, a compromise between Biden and McCarthy that has garnered growing opposition from Republican lawmakers.The stream of the debate is available at the top of the liveblog.Democrats and Republicans contended with the debt ceiling deal reached over the long weekend. Republican House speaker Kevin McCarthy insisted the deal would be “easy” for his party to support, while right-wing members blasted it.House Democratic leader, Hakeem Jeffries, said his party is “committed to making sure we do our part in avoiding default”.Points of contention included expanded work requirements for long-term recipients of food stamp benefits. Republicans said that the new work requirements would save money, and help get poor Americans back on their feet – despite studies indicating otherwise (work requirements don’t increase work or earnings). Still, the White House said provisions in the deal that access to Snap for veterans and unhoused Americans would offset work requirement expansions.Here’s more information about the deal and next steps:Shalanda Young, Biden’s top negotiator on this debt deal, told reporters that the expanded access to food stamps for the unhoused and veterans could “offset” the number who might lose coverage due to new qualifications that the Republicans pushed for.Food stamps have been a big point of division between Democrats and Republicans, and the new work requirements to receive Snap benefits is a point of contention for many on the left. Ultimately, if it would save the federal government any money – as Republicans claim it would.Under the deal, so-called able-bodied adults who are 54 and younger and do not have children must work or participate in work training programs to get access to food stamps for an extended period. The current work requirements apply to those age 49 and under, and anti-poverty advocates said the changes could disproportionately impact poor, older Americans.The White House, however, estimates that since many food stamp recipients are unhoused, veterans, or both – expanded access for those groups could ultimately mean that the number of people who are exempt from work requirements will be relatively unchanged.California representative Joe Neguse got into into a disagreement with Missouri representative Jason Smith about whether the Biden administration submitted the budget late, despite Republicans not submitting a budget at all.“Only in the rules committee could the witness lay blame at the president for being a few weeks late in submitting his budget, when his party hasn’t submitted a budget, period,” said Neguse.Neguse added that Republicans submitted a bill, but not a budget.Before the disagreement, Neguse doubled down on previous comments that the current debt ceiling crisis is Republican’s fault.“This is a manufactured crisis. No question about it. House Republicans are in control. You have the gavels. You’re in the majority. And the fact that we’re a mere few days from potential default because the majority decided to engage in this hostage taking … I think is a dangerous harbinger for how this body may function into the future.”Schumer has said that he will bring the debt ceiling agreement to the floor “as quickly as possible” to get votes before the default deadline of 5 June.From CBS News’ Natalie Brand:More Democrats are saying the bipartisan debt agreement is a win as several assistance programs were not cut in the compromise.“There are, however, things to celebrate in this bill because of what is not in it. The sort of damage that we saw from the Republican partisan bill that passed here just a month ago,” said Pennsylvania representative Brendan Francis Boyle, who noted that programs such as veterans healthcare were not affected by the latest agreement.Senate minority leader Mitch McConnell signaled his support for the debt ceiling agreement, in comments made Tuesday.“The speaker’s deal secures reductions in discretionary spending,” said McConnell. “Speaker McCarthy & House Republicans deserve our thanks,” McConnell added.From Punchbowl News’ Andrew Desiderio:Representative Jason Smith of Missouri criticized the Biden administration for taking too long to negotiate the debt ceiling bill.“The American people didn’t have to wait those 100 days [Biden] chose to sit on the sidelines. But we have an agreement now and an opportunity to deliver some big wins for the American people,” said Smith, referring to the stalemate over the bill that took place across several months.Meanwhile the Senate majority leader, Chuck Schumer, has said he supports the bipartisan debt ceiling agreement, despite opposition on both sides.From Politico’s Burgess Everett:McGovern also called out Republicans attacking benefits, such as food assistance, as a part of the debt ceiling agreement.“These adjustments will make poorer, older Americans hungrier. Full stop.”Republicans included work requirements for adults receiving food-assistance benefits, requiring adults under the age of 54 to work at least 20 hours a week to qualify.Ranking member Jim McGovern is currently speaking on the debt limit agreement, calling out Republicans for not negotiating on the agreement months ago.“Frankly we should not be here. We should’ve taken care of this months ago,” said McGovern.“This represents an all-time high in recklessness and stupidity.”The House rules committee has started debating the debt ceiling bill, a compromise between Biden and McCarthy that has garnered growing opposition from Republican lawmakers.The stream of the debate is available at the top of the liveblog.Utah representative Chris Stewart will resign from the House due to his wife’s health issues, according to sources familiar with the matter.The Salt Lake Tribune first reported that Stewart will probably step down from office as early as this week, shrinking the Republican majority in the House.The Tribune did not confirm what health issues Stewart’s wife is dealing with.Stewart was first elected in 2012 and is serving his sixth term in the House. Many believed Stewart would leave his House seat to unseat Mitt Romney as US senator for Utah, the Tribune reported.Stewart’s departure will kick off a special election in the House, organized by the Utah governor’s office.Here’s an exclusive from the Guardian’s Hugo Lowell, as Trump’s lawyer says that he was steered away from searching Trump’s office for secret records, where the FBI later found the most sensitive materials.
      Donald Trump’s lawyer tasked with searching for classified documents at Mar-a-Lago after the justice department issued a subpoena told associates that he was waved off from searching the former president’s office, where the FBI later found the most sensitive materials anywhere on the property.
      The lawyer, Evan Corcoran, recounted that several Trump aides had told him to search the storage room because that was where all the materials that had been brought from the White House at the end of Trump’s presidency ended up being deposited.
      Corcoran found 38 classified documents in the storage room. He then asked whether he should search anywhere else, like Trump’s office, but was steered away, he told associates. Corcoran never searched the office and told prosecutors the 38 papers were the extent of the material at Mar-a-Lago.
      The assertion that there were no classified documents elsewhere at the property proved to be wrong when the FBI seized 101 classified documents months afterwards, including from the office, which was found to be where the most highly classified documents had been located.
      Read the full article here.Former first lady Rosalynn Carter has been diagnosed with dementia, the the Carter Center announced Tuesday.The non-profit founded by the Carters released a statement on Carter’s condition.The center said that the 95-year old continues to live at home with her husband, former president Jimmy Carter, and receive visits from loved ones.The statement also noted Carter’s role as a mental health advocate and work to decrease mental health stigma, adding that releasing the statement was to help increase conversations around dementia.“We recognize, as she did more than half a century ago, that stigma is often a barrier that keeps individuals and their families from seeking and getting much-needed support. We hope sharing our family’s news will increase important conversations at kitchen tables and in doctor’s offices around the country,” read the statement.A majority of Republican voters think Donald Trump would be their strongest nominee for president next year, according to a new poll.According to the survey, from Monmouth University in New Jersey, 45% of Republicans (including Republican-leaning voters) think Trump is definitely the strongest candidate the party can hope to field against Joe Biden. Another 18% of such voters think Trump is probably the strongest possible GOP nominee.This, remember, is a former president who has pleaded not guilty to 34 criminal counts over a hush money payment to the porn star Stormy Daniels; who was found liable for sexual assault and defamation against the writer E Jean Carroll, and fined $5m; who faces further problems in a related case after continuing to criticise Carroll; who faces a New York state civil suit over his business affairs; who faces indictment in state and federal investigations of his election subversion, including inciting the deadly January 6 attack on Congress; and also faces indictment over his retention of classified materials.He’s also the former president who, according to the Washington Post, made 30,573 false or misleading statements in his four years in office. That too.In the Monmouth poll, 13% of Republicans thought another candidate would definitely be the strongest nominee and 19% said another would probably be strongest.More bad news, you’d think, for Ron DeSantis: the hard-right Florida governor who remains Trump’s closest challenger … if around 30 points behind in most polling averages and after a campaign rollout featuring its fair share of hiccups.DeSantis, however, is feeling bullish. Here’s what he told Fox News he plans to do after winning the nomination and a general election against Biden. Clue – he doesn’t plan to start small:And in more news from Texas – though unrelated – Elizabeth Holmes, the Theranos founder who was found guilty of defrauding investors, has begun her 11-year prison sentence.It marks the end of the blood-testing firm’s fraud saga after the 39-year-old had tried and failed to delay her prison sentence.Here’s a video of Holmes arriving at the prison in Bryan, Texas:And you can read the full report here:Away from the debt ceiling for a moment, it has emerged that the wife of the Texas attorney general, Ken Paxton, has a vote in the impeachment proceedings against him.The AP reports that state senator Angela Paxton could be voting on whether to restore her suspended spouse to office or banish him permanently.It is a conflict of interest that would not be allowed in a criminal trial and one that raises an ethical cloud over the senate proceeding.One legal expert says it will be up to Angela Paxton’s “moral compass” to decide if she will recuse herself. The impeachment charges against Ken Paxton include bribery related to his extramarital affair with an aide to a state senator.Here’s an explainer from Mary Yang on how the debt ceiling compromise could get passed.
      What are its chances of getting through?
      While lawmakers have expressed confidence that the bill would successfully get past Congress, some hardline Republicans have signaled they will not sign the deal.
      Representative Chip Roy of Texas, a member of the Rules committee, has urged fellow lawmakers to vote no on the deal.
      “This is not a deal that we should be taking,” Roy told Fox News’ Glenn Beck on Tuesday.
      What’s in the deal?
      If passed, the deal would suspend the US debt limit through 1 January 2025, well past the next US presidential election, which is in November 2024. But suspending the debt limit is a temporary measure, and the US would need to bring down the national debt or raise the ceiling by the new deadline.
      The deal would keep non-defense spending roughly the same for fiscal year 2024 and raise it by 1% in fiscal year 2025.
      The bill would also place new restrictions on SNAP benefits, limiting the number of individuals eligible for food stamps. Unspent emergency aid related to the Covid-19 pandemic, totaling about $30bn, will also be returned to the government.
      Read the full explainer here.An increasing number of Freedom Caucus members speaking during Tuesday’s press conference are telling their Republican colleagues to reject the debt ceiling compromise. More

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      McCarthy insists Republican support for debt deal ‘easy’ despite vocal opposition

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      The Republican speaker of the US House, Kevin McCarthy, insisted on Tuesday that supporting the debt ceiling deal would be “easy” for his party and it was likely to pass through Congress despite one prominent rightwinger’s verdict that the proposed agreement is a “turd sandwich”.Amid loud denunciations from the Republican right and also from closer to the centre, McCarthy said he was not worried the agreement would fail, or that it would threaten his hold on the speaker’s gavel.The bill is the “most conservative deal we’ve ever had”, McCarthy told reporters, of a two-year agreement that includes spending freezes and rescinding Internal Revenue Service funding while leaving military and veterans spending untouched.Negotiators fielded by McCarthy and Joe Biden reached the deal to raise the $31.4tn US debt ceiling last weekend.A default would be likely to have catastrophic consequences for the US and world economies. The treasury secretary, Janet Yellen, has said that will happen on 5 June if no bill is passed.But members of the far-right the House Freedom Caucus have balked at the deal.Chip Roy of Texas, who in January played a key role in securing the speakership for McCarthy after 15 rounds of voting, amid a rightwing rebellion, had perhaps the most pungent response.He said the debt ceiling deal was a “turd sandwich”, because it did not include spending cuts demanded by the hard right.Speaking to reporters at the Capitol on Tuesday, Roy said he had not changed his mind.“Right now, it ain’t good,” he said.Another rightwing firebrand, Thomas Massie of Kentucky, said he “anticipate[d] voting for” the bill, having said: “I think it’s important to keep in mind the debt limit bill itself does not spend money.”But a comparative moderate, Nancy Mace of South Carolina, resorted to personal abuse of Biden when she said on Twitter: “Washington is broken. Republicans got outsmarted by a president who can’t find his pants. I’m voting no on the debt ceiling debacle because playing the DC game isn’t worth selling out our kids and grandkids.”Republicans regularly claim without evidence that Biden, 80, is too old and mentally unfit to be president. Conversely, many political observers have credited Biden and his White House negotiators with pulling off a deal to avoid default while keeping Democrats on the front foot.Saluting Biden’s “capacity to over-perform after an onslaught of negative press and Democratic hand-wringing”, the Washington Post columnist Jennifer Rubin said: “Biden brushed back the litany of outrageous demands, kept his spending agenda and tax increases intact and got his two-year debt limit increase.“And in making a deal with [McCarthy] Biden helps stoke dissension on the GOP side as the extreme Maga wing denounces the agreement.”Biden has also faced criticism from progressives and from environmental activists, in the latter case over the inclusion in the deal of approval for a controversial pipeline in Virginia and West Virginia.“Singling out the Mountain Valley pipeline for approval in a vote about our nation’s credit limit is an egregious act,” said Peter Anderson of Appalachian Voices, which has charted hundreds of environmental violations by the project.skip past newsletter promotionafter newsletter promotionRepublicans control the House by 222-213. By Tuesday afternoon, more than 20 Republicans had said they would vote against the deal. Donald Trump, the frontrunner for the Republican presidential nomination, has said the party should let default happen if Biden does not cave.If defections proliferate, McCarthy could be left needing Democratic support to pass the bill arising from the deal and thereby avoid default.On Tuesday, the House Democratic leader, Hakeem Jeffries, said his party would do their part to win passage of the bill.“My expectation is House Republicans will keep their commitment to produce at least two-thirds of their conference which is approximately 150 votes” and pass the bill, Jeffries said. “Democrats are committed to making sure we do our part in avoiding default.”Jeffries said he did not think there would be a problem advancing the bill through the rules committee. That panel was due to consider the 99-page bill beginning at 3pm ET on Tuesday, ahead of votes in the Republican-controlled House and Democratic-held Senate.Democrats control the Senate 51-49. Some Senate Republicans have voiced dissatisfaction with the deal.On Tuesday, one of Biden’s negotiators, the budget director, Shalanda Young, said the White House “strongly urged” Congress to pass the bill. Wally Adeyemo, the deputy treasury secretary, told MSNBC the deal was a “good faith compromise” that took a debt default off the table.A White House spokesperson said Biden was having conversations with both progressive and moderate Democrats ahead of a House vote planned for Wednesday.Markets have reacted positively to the deal so far.Reuters contributed reporting More

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      US debt ceiling deal: what has to happen now to get it passed?

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      The United States has days before it runs out of time to pay its bills and avoid a first-ever national default. Washington lawmakers are scrambling to push through a deal that would temporarily suspend the US debt limit, averting a potential disaster for the domestic and global economy.The debt ceiling, which caps the amount of debt the US can hold, currently sits at $31.4tn. The US hit that limit in January. Since then, the treasury has taken “extraordinary measures” to prevent default.Last week, the treasury secretary, Janet Yellen, warned lawmakers that the US must pay its debts by 5 June – at which point the government would default.The deal on the tableOver the weekend, negotiators for Joe Biden and the House speaker, Kevin McCarthy, reached a tentative deal to suspend the debt limit and avoid a debt default.The clock then began for members of the House, who had 72 hours to review the deal and pass it through a floor vote.Then there’s a voteThe powerful House rules committee meets to review the deal, called the Fiscal Responsibility Act of 2023, on Tuesday afternoon. The deal is expected to go to a chamber vote on Wednesday.If passed by a simple majority in the House, the bill would then move to the Senate for another review, which could take days. The Senate majority leader, Chuck Schumer, told senators to be prepared to vote on Friday and potentially over the weekend, days before the 5 June deadline.Once it moves through both chambers of Congress, the bill then goes to the president’s desk for his signature.What are its chances of getting through?While lawmakers have expressed confidence that the bill would successfully get past Congress, some hardline Republicans have signaled they will not sign the deal.Representative Chip Roy of Texas, a member of the rules committee, has urged fellow lawmakers to vote no on the deal.“This is not a deal that we should be taking,” Roy told Fox News’ Glenn Beck on Tuesday.What’s in the deal?If passed, the deal would suspend the US debt limit through 1 January 2025, well past the next US presidential election, which is in November 2024. But suspending the debt limit is a temporary measure, and the US would need to bring down the national debt or raise the ceiling by the new deadline.skip past newsletter promotionafter newsletter promotionThe deal would keep non-defense spending roughly the same for fiscal year 2024 and raise it by 1% in fiscal year 2025.The bill would also place new restrictions on Snap benefits, limiting the number of individuals eligible for food stamps. Unspent emergency aid related to the Covid-19 pandemic, totaling about $30bn, will also be returned to the government.What happens if the US credit score drops?A national default would probably tank the US credit rating, currently at AAA, the highest status. A lower credit rating makes it more risky for international lenders and costly for individuals living in the US to take out loans.The last time the US reached the brink of a national default was 2011. After that, one credit rating agency, S&P, downgraded the US’s credit rating, citing troubled policymaking in Washington. That sent markets tumbling, sending shockwaves through the global economy, and made it more expensive for ordinary consumers seeking to buy a house or a car.What’s next?Concessions had to be made on both sides of the aisle. Biden and McCarthy will need to assuage members of their party ahead of a major election year, in which both are seeking another term.“We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,” Yellen wrote in a letter to McCarthy on Friday.Failing to increase the debt limit “would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests”, Yellen added. More

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      ‘Whatever it takes’: Biden and McCarthy’s tense journey to debt deal

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      When Kevin McCarthy was struggling early this year to get enough votes from his own Republicans to become speaker of the House of Representatives, Democratic president Joe Biden called the prolonged saga a national embarrassment, then had a little fun.“I’ve got good news for you,” Biden said, pointing playfully at a reporter after a speech in Kentucky. “They just elected you speaker.”During months of tense exchanges over the US debt ceiling, McCarthy has also taken some swipes at Biden. Arguing that Biden should meet him to discuss his demands for lifting the debt ceiling in March, McCarthy made fun of the 80-year-old president’s advanced age.“I would bring lunch to the White House. I would make it soft food if that’s what he wants. It doesn’t matter. Whatever it takes to meet,” McCarthy told reporters.In the last few weeks, however, both men have stopped the put-downs and cobbled together an agreement that will now lead to a congressional vote to suspend the US debt ceiling and avoid a default that would wreak economic havoc on the country.Like the deal they crafted, the relationship the two men forged does not look pretty but appears to have gotten the job done.“I think he negotiated with me in good faith,” Biden said of McCarthy on Sunday. “He kept his word. He said what he would do. He did what he said he would do.”The deal caps federal spending and forces more poor people to work for food aid, concessions that Democrats hate. But it also preserves much of Biden’s Inflation Reduction Act and punts the next debt ceiling showdown into 2025, which Republicans hate.The two leader are strange political bedfellows. Biden, a veteran former senator from Delaware, talks about the days when both parties would often come together to solve pressing problems. Although he initially called for the debt ceiling to be raised without negotiations, he ended up making compromises.McCarthy, a 58-year-old Californian, is representative of a pugilistic style of Republican politics that took root with the rightwing Tea Party congressional group formed during the Obama administration, which blossomed when Donald Trump was president.He came up through the party ranks pushing tax cuts for companies and reduced government spending and is now presiding over an unruly House Republican membership in which radical lawmakers have threatened to force him out of the speaker job unless he takes a very hard line with the White House.After an initial 1 February meeting at the White House, an optimistic McCarthy predicted that he and Biden would find common ground and meet again soon. Instead, a three-month stand-off ensued.Even after negotiations finally began in earnest, McCarthy tweeted about Biden: “He’d rather be the first president in history to default on the debt than to risk upsetting the radical socialists who are calling the shots for Democrats right now.”But his tone changed as both sides moved toward a deal last week, expressing his respect for White House negotiators, saying: “These are highly intelligent, highly respected on both sides. They know their work, they know their job, they know the numbers.”House Republican Patrick McHenry, a key negotiator in the talks, said last week of the two leaders: “What I saw in the Oval Office yesterday was a willingness to engage with each other in a sincere way – air disagreements, listen.Biden aides say the relationship is largely cordial and businesslike and that the president recognizes the speaker has a struggle on his hands presiding over the various party factions.It may not help their relationship that both men were very close to the other’s predecessor.Biden idolized former Democratic House speaker Nancy Pelosi, a woman “who I think will be considered the greatest speaker in the history of this country”, he said.McCarthy was an enthusiastic Trump supporter and a frequent flyer on Air Force One with the then-president.He was among 147 Republicans who voted to overturn Biden’s 2020 election victory, but eventually acknowledged Biden as the legitimate president.He criticized Trump for failing to stop his own supporters as they stormed the US Capitol on 6 January 2021, but remains in touch with him. More

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      US debt ceiling deal: what’s in and out of Biden and McCarthy’s agreement

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      Details of the deal between Joe Biden and Kevin McCarthy take the form of a 99-page bill that would suspend the nation’s debt limit into 2025 in order to avoid an unprecedented federal default, which the White House said on Monday would be “catastrophic for the American people”, while limiting government spending.The Democratic president and Republican House speaker are trying to win over lawmakers to the plan in time to avert a default that would shake the global economy. But Congress will be scrutinizing and debating the legislation fiercely this week.McCarthy said the House will vote on the legislation Wednesday, giving the Senate time to consider it before 5 June, the date when the treasury secretary, Janet Yellen, said the US could default on its debt obligations if lawmakers did not act in time.With the details of the deal now clear, here’s what’s in and out:Two-year debt limit suspension, spending limitsThe agreement would keep non-defense spending roughly flat in the 2024 fiscal year and increase it by 1% the following year, as well as suspend the debt limit until January 2025 – past the next presidential election.For the next fiscal year, the bill matches Biden’s proposed defense budget of $886bn and allots $704bn for non-defense spending. It also requires Congress to approve 12 annual spending bills or face a snapback to spending limits from the previous year, which would mean a 1% cut.Overall, the White House estimates that the plan would reduce government spending by at least $1tn, but official calculations have not yet been released.Care for military veteransThe agreement would fully fund medical care for veterans at the levels included in Biden’s proposed 2024 budget blueprint, including a fund dedicated to veterans who have been exposed to toxic substances or environmental hazards. Biden sought $20.3bn for the toxic exposure fund in his budget.Unspent money from Covid-19 pandemicThe agreement would rescind about $30bn in unspent coronavirus relief money that Congress approved through previous bills, including federal programs for rental assistance, small business loans and broadband internet for rural areas.The legislation protects pandemic funding for veterans’ medical care, housing assistance, the Indian Health Service and developing the next generation of Covid-19 vaccines and treatments.Funding for the Internal Revenue ServiceRepublicans targeted money that the federal tax agency was allotted last year to crack down on tax fraud. The bill bites into some Internal Revenue Service (IRS) funding, rescinding $1.4bn.skip past newsletter promotionafter newsletter promotionWork-for-benefits requirementThe agreement would expand work requirements attached to the Supplemental Nutrition Assistance Program, Snap, formerly known as food stamps – a longtime Republican priority. But the changes are pared down from a hardline debt ceiling bill previously generated and passed in the House, which are a huge no for progressive Democrats.Work requirements already exist for most able-bodied adults between the ages of 18 and 49. The bill would phase in higher age limits, bringing the maximum age to 54 by 2025. But the provision expires, bringing the maximum age back down to age 49 five years later, in 2030.Democrats also won some new expanded benefits for veterans, homeless people and young people ageing out of foster care. The agreement would also make a small boost to the Temporary Assistance to Needy Families program, which gives cash aid to families with children, making it harder for states to avoid paying.Energy projectsThe deal puts in place changes in the National Environmental Policy Act for the first time in nearly four decades that would designate “a single lead agency” to develop and schedule environmental reviews, in hopes of streamlining the process for approval for energy projects – both involving fossil fuels and renewable energy.The bill also gives special treatment to the controversial Mountain Valley pipeline, a West Virginia natural gas pipeline championed by pivotal Democratic senator Joe Manchin, and Republican senator Shelley Moore Capito, by approving all its outstanding permit requests.Student loansRepublicans have long sought to reel back Biden’s temporary relief on student loans during the coronavirus pandemic. Biden has agreed that the pause in loan repayments will end in late August. Meanwhile, a GOP proposal to rescind the White House’s plan to waive $10,000 to $20,000 in debt for nearly all student borrowers is not in the debt ceiling package. The conservative-dominated US supreme court is due to rule next month on whether Biden has the power to waive the debt.What’s left out?House Republicans passed legislation last month that would have created new work requirements for some Medicaid recipients, but the White House successfully blocked that from the deal. Also absent is a GOP proposal to repeal many of the clean energy tax credits Democrats passed in party-line votes last year. More

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      Biden, McCarthy agree to raise US debt ceiling – what’s in the deal?

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      Joe Biden and Kevin McCarthy have reached an agreement to lift the US debt ceiling and avoid a disastrous and unprecedented default. Prior to the details being presented to lawmakers, ahead of an expected vote on Wednesday, here is what sources familiar with negotiations have revealed:Cap on discretionary spendingThe deal would suspend the $31.4tn debt ceiling until January 2025, allowing the government to pay its bills. In exchange, non-defense discretionary spending would be “roughly flat” at current year levels in 2024, “when factoring in agreed-upon appropriations adjustments”, a source said. It would increase by only 1% in 2025.Republicans have told their members that non-defense discretionary spending, apart from military veterans’ healthcare, would be cut to 2022 levels.What about the 2024 presidential election?The debt limit extension schedule means Congress would not need to address the deeply polarizing issue again until after the November 2024 election. This would prevent another political showdown that rattles global investors and markets until after either a Republican is elected president or Biden wins a second term.Increased defense spendingThe deal is expected to boost defense spending to around $885bn, in line with Biden’s 2024 budget spending proposal, an 11% increase from the $800bn allocated in the current budget.Special IRS funding for federal tax authoritiesBiden and Democrats secured $80bn in new funding for a decade to help the Internal Revenue Service enforce the tax code for wealthy Americans in last year’s Inflation Reduction Act. Republicans and Democrats had battled over moving that funding, which was allocated under the act as “mandatory spending” to keep it from the political fighting of the annual budgeting process, to “discretionary spending” to be allocated by Congress.Covid clawback, cuts for the CDCBiden and McCarthy are expected to agree to claw back unused Covid-19 relief funds as part of the budget deal, including funding that had been set aside for vaccine research and disaster relief. The estimated amount of unused funds is between $50bn and $70bn. The bill will also cut $400m from the Centers for Disease Control (CDC) global health fund “that sends taxpayer money to China”, Republicans told members, despite the risks of future pandemics.Work requirementsBiden and McCarthy battled fiercely over imposing stricter work requirements on low-income Americans who benefit from federal food and healthcare programs.skip past newsletter promotionafter newsletter promotionNo changes were made to Medicaid health insurance in the deal, but the agreement would impose new work requirements on low-income people who receive food assistance, up to age 54, instead of 50.Student loansRepublicans said that they ensured borrowers would have to repay their student loans. However, other sources say the deal codifies relief from student loan payments while Biden’s executive action providing up to $20,000 of debt relief for each borrower is under review by the US supreme court, with a decision expected next month.‘Pay-go’Republicans said they secured a budgeting mechanism known as “pay-go”, short for “pay-as-you-go”, that says new legislation or executive orders affecting revenues and spending on Medicare, social security and other key programs must be budget-neutral.Energy permittingThe two leaders agreed to new rules to make it easier for energy projects – including fossil fuel-based ones as well as renewable energy – to gain permit approval. More

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      in US Politics

      Biden says debt ceiling deal ‘in good shape’ amid rush to avert catastrophic default

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      Legislation was being urgently worked on in Washington on Sunday to spell out the details of the tentative deal to raise the US debt ceiling struck between President Joe Biden and House speaker Kevin McCarthy, with the aim of putting it before Congress and avoiding a catastrophic and unprecedented default in early June.Members of Congress expect to be shown the details of the deal on Sunday evening and McCarthy wants the forthcoming bill to be voted on in the House on Wednesday, he indicated in a press conference on Capitol Hill on Sunday mid-morning, noting that negotiators had been up all night.Biden on Sunday afternoon told reporters when arriving back at the White House, after attending the high school graduation of one of his granddaughters in Delaware, that there were no sticking points before finalizing the agreement with McCarthy and, when asked if he was confident the deal would be voted through Ccongress and reach his desk, replied “yes”.He and the speaker were due to speak again to, as Biden put it: “Make sure all the Ts are crossed and the Is are dotted,” adding, “I think we’re in good shape.”Biden and McCarthy had held a 90-minute phone call earlier on Saturday evening to discuss the deal before the outline agreement was first announced that night, with the Democratic US president joining the call from the Camp David retreat and the Republican speaker in the nation’s capital.Biden had said after that: “The agreement represents a compromise, which means not everyone gets what they want. That’s the responsibility of governing,” while calling the pact “an important step forward”.McCarthy will have to get the legislation through the Republican-controlled House, where his party holds only a five-seat majority. He faces hostility from his far-right wing members who are expected to balk at spending cuts that they deem not deep enough, while progressives may be more likely to choke down cuts and benefits restrictions that they loathe in order to pass the deal.Earlier on Sunday morning, McCarthy boasted on Fox News Sunday that “there’s not one thing in the bill for Democrats” even though Biden achieved his fundamental goal of persuading the Republican to agree to a debt ceiling increase. McCarthy predicted House GOP members will support the deal.McCarthy added at the press conference later: “We are going to put the bill on the [House] floor in 72 hours and pass it.”To reduce spending, as Republicans had insisted, the package includes a two-year budget deal that would hold spending flat for 2024 and impose limits for 2025. That’s in exchange for raising the debt limit for two years, until after the next election.It also expands some work requirements for certain food-stamp recipients and tweaks an environmental law to try to streamline reviews to build new energy projects.Treasury Secretary Janet Yellen has said the United States could default on its debt obligations by 5 June if lawmakers do not act in time to raise the federal debt ceiling.Democratic and Republican negotiators ironed out the final details of an agreement to suspend the federal government’s $31.4tn debt ceiling in time to promise to present the legislation to lawmakers before the Memorial Day holiday on Monday.A failure by Congress to deal with its self-imposed debt ceiling before 5 June could trigger a default that would shake financial markets and send the US into a deep recession.House minority leader and Democratic New York representative Hakeem Jeffries said in a letter: “I am thankful to President Biden for his leadership in averting a devastating default,” the letter said.Washington state Democratic representative Pramila Jayapal, chair of the congressional progressive caucus, told CNN’s State of the Union show on Sunday morning that she did not yet know if she would vote for the deal as she needed to see “the exact legislative text”.She said the notion of tightening conditions for hungry families to claim food stamps was “absolutely terrible policy”.But she warned: “The American people have to understand that we are on the brink of default” after House Republicans forced a negotiation, while further warning that Republicans want to cut “basic spending on things like healthcare, education, child care, all of the things you care about”.South Dakota Republican congressman Dusty Johnson, who was involved in the behind-the-scenes negotiations prior to the leaders agreeing, cheered “a fantastic deal” on Sunday morning, also talking to CNN.Johnson noted he is the leader of the mainstream Republican caucus in the House and said he believes there are freedom caucus members who will vote for it, though maybe not the most “colorful” ones.Republicans control the House by 222-213, while Democrats control the Senate by 51-49. These margins mean that moderates from both sides will have to support the bill, as any compromise will almost definitely lose the support of the far left and far right wings of each party.To win the speaker’s gavel, McCarthy agreed to enable any single member to call for a vote to unseat him, which could lead to his ousting if he seeks to work with Democrats. On Sunday, he said he was “not at all” worried that could happen.Some hardline Republicans balked at McCarthy cooperating with the White House.“If Speaker’s negotiators bring back in substance a clean debt limit increase … one so large that it even protects Biden from the issue in the presidential [election]…it’s war,” representative Dan Bishop, a member of the right wing Freedom Caucus, tweeted.The deal does just that, sources briefed on it said.The deal would boost spending on the military and veterans’ care, and cap it for many discretionary domestic programs, according to sources familiar with talks. But Republicans and Democrats will need to debate, as the deal doesn’t specify them. More