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WASHINGTON, May 30 (Reuters) - The U.S. Congressional Budget Office said on Tuesday its budget deficit projections would be reduced by about $1.5 trillion over the next 10 years if the debt ceiling bill now up for a vote in Congress were enacted in its present form. The projection comes following the debt ceiling deal struck last weekend between Democratic President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy. The bill, if approved by Congress, will prevent the U.S. government from defaulting on its debt and comes after weeks of heated negotiations between Biden and House Republicans. McCarthy has predicted he would have the support of a majority of his fellow Republicans for the deal to lift the $31.4 trillion U.S. debt ceiling, and House Democratic leader Hakeem Jeffries said he expected Democratic support. Reporting by Kanishka Singh and Jasper Ward; Editing by Sonali Paul and Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

Persons: Joe Biden, Kevin McCarthy, Biden, McCarthy, Hakeem Jeffries, Kanishka Singh, Jasper Ward, Sonali Paul, Christopher Cushing Organizations: U.S, Congressional, Democratic, Republican, Congress, Biden, House Republicans, Republicans, Thomson Locations: Jasper

☆ Budget analysis finds the debt deal would actually expand SNAP benefits, even though the GOP fought for work requirements
▼ + stars: | 2023-05-31 | by ( Azmi Haroun | ) www.businessinsider.com time to read: +2 min

In total, at least 78,000 people would gain access SNAP benefits per month, which is a .2% increase, the CBO wrote. Over weeks of fraught negotiations, many GOP members opposed additional public benefit spending, seeking to bolster the work requirements required to access some benefits. In February, the GOP House Budget Committee signaled that they wanted to limit public spending on SNAP. Through May, members of the America First caucus urged McCarthy to reject any deal that did not expand work requirements for public benefits. The bill raises the age for work requirements from 49 to 54.

Persons: —, Kevin McCarthy, Joe Biden, McCarthy, Meredith Lee Hill Organizations: Service, Office, SNAP, CBO, GOP, Committee, America, NBC News

☆ Debt deal sacrifices $140 bln return on investment
▼ + stars: | 2023-05-31 | by ( ) www.reuters.com time to read: +2 min

The budget deal agreed to by President Joe Biden and top congressional Republican Kevin McCarthy would move $20 billion away from the Internal Revenue Service over the next two years. The change shores up cash for other agencies, but projections suggest the IRS funding would’ve made a significant step toward closing the government’s $925 billion budget gap. Biden approved $80 billion of new cash for the IRS in 2021, arguing the funding would strengthen enforcement and increase revenue collected by Uncle Sam. The CBO estimated in 2021 that for every $1 increase to IRS funding the government would recoup $6.40 to $7.10. The $20 billion being diverted from the agency could therefore raise as much as $142 billion through 2031.

Persons: Joe Biden, Kevin McCarthy, would’ve, Biden, Uncle Sam, Ben Winck, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, U.S, Internal Revenue Service, Office, CBO, IRS, White, Twitter, Toyota, Lufthansa, Thomson Locations: Saudi, East, Italy

☆ Inside a debt ceiling standoff ‘far more dangerous than people will recognize’
▼ + stars: | 2023-05-31 | by ( Jeremy Diamond Lauren Fox Melanie Zanona Phil Mattingly Arlette Saenz Kevin Liptak | Jeremy Diamond | Lauren Fox | ) edition.cnn.com time to read: +17 min

“She’s well respected by both sides,” McCarthy said of the former longtime House Appropriations Committee staffer, according to White House officials. “Asking me about the communication (with the White House) implies there was communication,” one House Democrat said. For the White House negotiators, that meant late nights and early mornings. The White House negotiators left Capitol Hill abruptly and for hours, it was unclear when the conversations would resume. Quietly, White House negotiators had never actually stopped talking to their Republican counterparts.

Persons: Joe Biden, Kevin McCarthy, McCarthy, “, “ You’ve, ” Rep, Patrick McHenry, Biden, Steve Ricchetti, Shalanda Young, Louisa Terrell, ” McCarthy, James S, Alex Wong, Young, Garret Graves, ” Graves, Graves, Tom Cole of, ” Cole, White, Jeff Zients, McHenry, ‘, Chuck Schumer, Hakeem Jeffries, Ricchetti, ”, ” Terrell, Dan Meyer, –, apprised, decamping, ’, Anna Moneymaker, nonstarters, ” McHenry, McHenry –, —, Susan Walsh, businesslike, Biden’s, Eisenhower, Zients, Jose Luis Magana, Young –, Louisianans –, Jim Clyburn, Clyburn, Annie Kuster, ” Kuster, wasn’t, ” Young Organizations: CNN, White, ”, Republican, Legislative, Young, Management, Brady, Capitol, White House, GOP, McCarthy’s, Pennsylvania, Capitol Hill, U.S, Biden, Democrat, Democratic, Republicans, Building, Air Force, West Executive, LSU Tigers, South Carolina Democrat, New Democrat Coalition, Democrats Locations: Irish, Washington , DC, Louisiana, Tom Cole of Oklahoma, McHenry, Hiroshima, Japan, Washington

The House Rules Committee voted to advance a bill dealing with the federal debt ceiling to the full House. Raising the debt limit, now $31.4 trillion, would allow Treasury to continue borrowing to pay the US's bills. Earlier, he said on "Fox and Friends" that "There's nothing in the bill for" Democrats — hardly a helpful statement for Biden. Top administration officials are heading to Capitol Hill to brief Democrats privately ahead of Wednesday's planned vote. "It is my expectation that House Republicans would keep their promise and deliver at least 150 votes as it relates to an agreement that they themselves negotiated," Jeffries said.

Persons: —, Kevin McCarthy, Joe Biden, McCarthy, Democrats —, Biden, Wednesday's, Hakeem Jeffries, Jeffries, Scott Perry, Chip Roy, Nancy Mace, Pramila Jayapal, it's, Sen, Joe Manchin, Raul Grijalva, Chuck Schumer, McConnell, Schumer, Democratic Sen, Tim Kaine, Virginia, Janet Yellen, Aamer Madhani, Seung Min Kim, Farnoush Amiri, Darlene Superville, Mary Clare Jalonick Organizations: Treasury, Service, WASHINGTON, Republicans, Democrats, Caucus, Republican, Capitol, Fox, Office, Social Security, Democratic, Freedom Caucus, Liberal, Appalachia ., Congressional Progressive Caucus, Democrat, Natural Resources Committee, Senate, Senators, House, Associated Press Locations: Washington, Texas, Appalachia, Arizona, That's

CNN —The House of Representatives is on track to vote Wednesday on a bill to suspend the nation’s debt limit through January 1, 2025, as lawmakers race to prevent a catastrophic default. The bipartisan debt limit deal struck between the White House and House Republicans was announced over the weekend – the culmination of long days and late nights of contentious negotiations that at times looked like they might breakdown and fall apart entirely. The effort to secure a debt limit deal has proven to be a major leadership test for both House Speaker Kevin McCarthy and Biden. Suspending the debt limit through 2025 takes the threat of default off table until after the presidential election. Before the House votes on final passage of the debt limit deal, the chamber must first vote to pass a rule setting parameters for floor debate.

Persons: Joe Biden, Chuck Schumer, Kevin McCarthy, Biden, –, McCarthy, “, ” McCarthy, Patrick McHenry Organizations: CNN, Senate, Treasury Department, White, House Republicans, Capitol, GOP, Democratic, Congressional, CBO

☆ Biden and McCarthy's plan to change SNAP work requirements in the debt-ceiling deal could actually expand benefits — but not employment
▼ + stars: | 2023-05-31 | by ( Ayelet Sheffey | Madison Hoff | ) www.businessinsider.com time to read: +6 min

She led some of her Democratic colleagues in introducing an amendment to remove the new SNAP work requirements from the debt-ceiling bill. "Come see me in a year, and I'll show you how much we actually saved," McCarthy told reporters on Tuesday night. How the work requirements will impact employmentDespite McCarthy and Republicans' belief that work requirements will bolster employment, some experts aren't so sure. Work requirements in SNAP have increased employment less; in Medicaid, they appear to have had little effect on employment." "I think it goes to the principle of this bureaucratic red tape that we call work requirements," Jayapal said.

Persons: —, Joe Biden, Kevin McCarthy, Biden, McCarthy, — McCarthy, Cori Bush, Lauren Bauer, there's, Bauer, Bernard Yaros, it's, Yaros, Congressional Progressive Caucus Pramila Jayapal, Jayapal Organizations: SNAP, CBO, Service, Supplemental, Assistance, Democratic, Office, White, Economic, Brookings Institution, The, Brookings, Moody's, Congressional Progressive Caucus Locations: Missouri, TANF

☆ What happens next with debt deal? Wall Street economists gauge the odds on passage from here
▼ + stars: | 2023-05-30 | by ( Michelle Fox | ) www.cnbc.com time to read: +7 min

An agreement on the United States' debt ceiling doesn't necessarily mean a smooth path to President Joe Biden's desk. Several Wall Street economists agree the deal will likely get signed, but not without some bumps along the way. House Committee on Rules meeting Before the legislation reaches the House for a vote, it must go through the 13-member House Committee on Rules — nine Republicans and four Democrats. "If all three vote against and no Democrat votes in favor, the bill will fail," Hatzius wrote in a Monday note. Tight House vote It's expected to be a tight vote in the House.

☆ Debt ceiling woes point to need for Social Security, Medicare reform, experts say
▼ + stars: | 2023-05-16 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

As lawmakers work to hammer out a debt limit deal, experts already say more needs to be done to curb the nation's spending, and that could include Social Security and Medicare reform. The debt ceiling is the maximum amount of money that the federal government may borrow to pay its bills. More from Personal Finance:How federal payments may be delayed in debt ceiling standoffWhat the looming debt ceiling crisis means for your portfolioWho could be affected most by retirement reforms in the U.S. House Republicans have passed legislation called the Limit, Save, Grow Act to raise the debt ceiling. While there is optimism both parties will come together to address the issue, experts say it is unlikely any compromise will include long-term fixes for the nation's fiscal woes.

☆ Biden's budget vs. House debt limit bill on spending, deficits, taxes
▼ + stars: | 2023-05-15 | by ( David Lawder | ) www.reuters.com time to read: +6 min

U.S. House of Representatives Speaker Kevin McCarthy and his fellow Republicans' "Limit Save and Grow Act" is a spending reduction bill that would cut 2024 federal discretionary spending to fiscal 2022 levels and rescind signature Biden programs already approved by Congress. Republicans: The House bill would cut 2024 U.S. discretionary spending back to the 2022 level of $1.664 trillion and limit subsequent annual increases to 1% for a decade. The discretionary spending proposals would add $2.23 trillion to deficits over 10 years, offset by tax increases. Biden: Full enactment of the fiscal 2024 budget request would reduce deficits by $2.857 trillion, according to the White House. Estimates for Biden's budget request are from the White House, as CBO has not yet issued a score.

☆ Treasury Secretary Yellen reaffirms U.S. could run out of money to pay bills by early June
▼ + stars: | 2023-05-15 | by ( Christina Wilkie | In | ) www.cnbc.com time to read: +3 min

U.S. Treasury Secretary Janet Yellen and Ukraine Prime Minister Denys Shmyhal speak to the press after holding a bilateral meeting at the U.S. Treasury Department Building in Washington, D.C., U.S. April 13, 2023. WASHINGTON — Treasury Secretary Janet Yellen reaffirmed to Congress on Monday that the United States could default on its debt as early as June 1. The Democratic majority Senate is expected to back whatever the White House negotiates with the GOP controlled House. "In fact, we have already seen Treasury's borrowing costs increase substantially for securities maturing in early June," said Yellen. "If the debt limit remains unchanged, there is significant risk that at some point in the first two weeks of June, the government will no longer be able to pay all of its obligations," said the CBO report.

☆ Debt ceiling worries deepen as early June U.S. default reinforced
▼ + stars: | 2023-05-12 | by ( Richard Cowan | ) www.reuters.com time to read: +6 min

The U.S. Congressional Budget Office report, issued Friday morning, confirms Treasury Secretary Janet Yellen's earlier warnings that a default could come as early as June 1. Congress' budget scorekeeper also noted that the federal government's debt payments "will remain uncertain throughout May, even if the Treasury ultimately runs out of funds in early June." She also said she remained optimistic that the debt limit problem would be resolved. A senior Treasury official told Reuters she would do that with board members of the Bank Policy Institute lobby group. Democratic Representative Abigail Spanberger said members of the U.S. Congress ought to have their paychecks withheld until the debt limit problem is resolved.

☆ The government's main budget experts confirmed that the US could risk economic catastrophe as soon as early June
▼ + stars: | 2023-05-12 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The nonpartisan Congressional Budget Office projected the US could run out of money in early June. That projection tracks with Treasury Secretary Janet Yellen's warnings on when the US could default. Congress can step in and prevent the crisis, but so far Republicans and Democrats are still sparring. So far, though, Congress seems to be running up the clock as Republicans and Democrats spar over how to avert a preventable catastrophe. The top lawmakers were expected to meet with Biden again on Friday to discuss the debt ceiling, but the meeting was reportedly postponed to give staffers more time to chat on potential areas of compromise.

☆ U.S. can avoid default in July if Treasury can make it through June cash crunch, Congressional Budget Office says
▼ + stars: | 2023-05-12 | by ( Christina Wilkie | In | ) www.cnbc.com time to read: +3 min

The updated guidance otherwise reiterated the CBO's earlier uncertainty about the debt ceiling during the first few weeks of June. The CBO also issued an updated projection of the federal budget deficit for 2023, raising it to $1.5 trillion. The CBO is a nonpartisan federal agency that provides objective budget and economic data to Congress, typically to inform legislation. It was unclear Friday what impact, if any, the new report would have on talks currently underway at the staff level, between aides to the four congressional leaders and White House liaisons. "It seems like they want to default more than they want a deal," the California Republican told reporters in the Capitol.

☆ Fmr. CBO Director Douglas Holtz-Eakin: Short-term debt ceiling extension very likely at this point
▼ + stars: | 2023-05-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFmr. CBO Director Douglas Holtz-Eakin: Short-term debt ceiling extension very likely at this pointDouglas Holtz-Eakin, American Action Forum president and former CBO director, and former U.S. congresswoman Donna Edwards join 'Squawk Box' to discuss the latest in debt ceiling negotiations, and whether a deal can be reached at Tuesday's White House meeting.

☆ The U.S. could hit the debt ceiling by June 1, much sooner than expected, Yellen warns
▼ + stars: | 2023-05-01 | by ( Christina Wilkie | In | ) www.cnbc.com time to read: +3 min

WASHINGTON — Treasury Secretary Janet Yellen on Monday warned that the United States may run out of measures to pay its debt obligations by June 1, earlier than the government and Wall Street had been expecting. The combination of Yellen's letter and the new CBO estimate added a fresh sense of urgency to stalled negotiations between President Joe Biden and McCarthy's Republican majority in the House. "Republicans' failure to agree to cleanly raise the debt ceiling has brought the United States to the brink of economic catastrophe," said Democratic Senate Budget Committee chairman Sheldon Whitehouse, R.I., in response to Yellen's letter. The Goldman Sachs estimate noted that so far there have been few ripples in the markets from rising debt-related risk. But this could change, analysts wrote, "once the Treasury announces a specific deadline for Congress to raise the debt limit."

☆ Factbox: What's in the US House Republicans' debt-ceiling spending-cut bill?
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +5 min

SPENDING RESTRAINTSThe bill would cut a wide swath of government spending to last year's levels, a decrease of about 9%. That would save roughly $3.2 trillion, according to the nonpartisan Congressional Budget Office, compared with current projections. That would save $30 billion, according to CBO. That would save $540 billion, according to CBO. That would save $3 billion, according to CBO.

☆ House Debt Ceiling Bill Cuts Deficits by $4.8 Trillion Over 10 Years, CBO Says
▼ + stars: | 2023-04-26 | by ( David Harrison | ) www.wsj.com time to read: 1 min

Speaker Kevin McCarthy unveiled a debt-ceiling bill last week. Photo: will oliver/EPA/ShutterstockWASHINGTON—House Republicans’ debt-ceiling bill would cut government deficits by $4.8 trillion over 10 years, according to Congress’s nonpartisan scorekeeper, as party leaders moved to gather enough support for a vote this week. The bill is designed to unify Republicans around a position as they prepare for expected talks with the White House and congressional Democrats over spending cuts, ahead of a projected summer deadline to raise the country’s borrowing limit. Unless Congress raises the ceiling, the U.S. could default on payments to borrowers and other obligations.

☆ Explainer: Tax cuts, balanced budget: What's not in Republican McCarthy's debt plan?
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +4 min

Some House Republicans have called for balancing the budget within 10 years, but McCarthy's proposed cuts would almost certainly not hit that goal. McCarthy's plan would not repeal two tax hikes secured by Democrats in last year's Inflation Reduction Act: a 15% minimum tax on large corporations and a 1% excise tax on stock buybacks. It also does not try to make permanent the temporary individual tax cuts contained in the 2017 Republican tax-cut package that are due to expire in 2025. His former budget director, Russell Vought, called for cuts to housing, education and health programs in a proposal released earlier this year. McCarthy's plan would not repeal Obamacare, or roll back enhancements secured by Democrats in 2021 and 2022.

☆ House Republicans unveil their plan to raise the debt ceiling for just one year — and it already faces hurdles from its own party
▼ + stars: | 2023-04-19 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

Kevin McCarthy unveiled his bill to raise the debt ceiling on Wednesday. On Wednesday, Speaker of the House Kevin McCarthy released his 320-page bill to raise the debt ceiling by $1.5 trillion, or until March 31, 2024, whichever comes first. And some Republicans don't even want to raise the debt ceiling at all. But McCarthy and Republicans have insisted that a hike to the debt ceiling needs to be accompanied by spending cuts. Earlier on Wednesday, the Problem Solvers Caucus — comprised of moderate Democrats and Republicans — unveiled their own plan to raise the debt ceiling, which included suspending the debt ceiling through December 31, 2023, to allow time to complete next year's budget, allowing for an automatic debt ceiling increase through February 28, 2025.

But he added that "a no-strings attached debt limit increase will not pass" the House. He added that he will seek to roll back federal spending on many programs to fiscal 2022 levels, followed by spending growth of only 1% each year over the next decade. "We are seeing in real time the effects of reckless government spending," McCarthy said in his opening remarks. Before the speech, White House spokesperson Andrew Bates said, "There is one responsible solution to the debt limit: addressing it promptly, without brinksmanship or hostage taking - as Republicans did three times in the last administration." So far House Republicans have not produced a proposed budget of their own, a move that Biden contends would be a necessary starting point for negotiations on spending.

☆ Republican U.S. House Speaker McCarthy to pitch spending cuts on Wall St
▼ + stars: | 2023-04-17 | by ( Richard Cowan | ) www.reuters.com time to read: +4 min

WASHINGTON, April 17 (Reuters) - Republican U.S. House Speaker Kevin McCarthy plans to make his case for cuts in federal spending to accompany a lifting of the government's $31.4 trillion debt ceiling in a speech at the New York Stock Exchange on Monday. McCarthy leads a fractious caucus that holds a narrow 222-213 majority, including a sizeable contingent of hardline members who want sharp spending cuts and dismiss the risks of failure to act on the debt ceiling. LIST OF OPTIONSRepublicans have been discussing spending cuts for programs ranging from homeland security and law enforcement to health, education and environmental initiatives. House Republicans are also mulling reforms to the debt ceiling, which has utterly failed at its intended purpose of restraining U.S. budget deficits. House Republicans now say they are looking at indexing the limit to gross domestic product.

☆ The US Navy's Super Hornets are having trouble keeping up with the rest of the military's fighter jets
▼ + stars: | 2023-04-12 | by ( Michael Peck | ) www.businessinsider.com time to read: +6 min

F/A-18E/F Super Hornets have mostly replaced F/A-18 Hornets as the US Navy's carrier-based fighters. The Super Hornet — which includes the single-seat F/A-18E and the two-seat F/A-18F — made its maiden flight in 1995. Super Hornet availability is now about 41% compared to about 26% for the Hornet, whose readiness dropped sharply at about the 25-year mark. But the CBO asked a more specific question: How did Hornets compare to Super Hornets at a similar age? Was the discrepancy caused by Super Hornets flying more hours than Hornets?

☆ 3 reasons student-loan borrowers could start taking on more debt once Biden's plan to lower monthly payments goes into effect
▼ + stars: | 2023-03-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Biden released a plan in August to reform income-driven repayment plans for student-loan borrowers. It also projected the more generous plan would lead to increased borrowing given the lower cost to take on debt. While Democratic lawmakers lauded the proposed improvements to IDR plans, Republican lawmakers criticized the proposal, along with its potential cost. Insider has previously reported that Biden's IDR reforms could keep borrowers in the same repayment cycle if it isn't implemented properly. "Under current IDR plans, most borrowers can expect to repay some or all their debt," the analysis said.

☆ U.S. House Republican hardliners unveil spending demands for raising debt ceiling
▼ + stars: | 2023-03-10 | by ( David Morgan | ) www.reuters.com time to read: +4 min

WASHINGTON, March 10 (Reuters) - The hardline U.S. House Freedom Caucus responded to President Joe Biden's $6.8 trillion budget proposal on Friday, with a list of demands including a near freeze on discretionary spending and an end to multiple programs, in exchange for raising the debt ceiling. House Freedom Caucus Chairman Scott Perry said the plan would mean a $131 billion spending cut for fiscal 2024, which begins on Oct. 1, and save $3 trillion over a decade. "America will not default on our debts unless President Biden chooses to do so," Perry told reporters at a news conference. "To ensure America does not default on our debts, the House Freedom Caucus is offering a responsible solution." "To president Biden: your budget is dead on arrival," said Representative Byron Donalds, a House Freedom Caucus member.

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