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The debt deal clears the HouseThe debt-ceiling deal is a step closer to becoming law after its breezy passage in the House last night, making the prospect of a U.S. default all the more remote. Investors expressed relief, sending global markets and U.S. stock futures higher this morning. The bill now heads to a final vote in the Democratic-controlled Senate. The House vote was always seen as riskier, but the bill’s passage in the upper house is by no means a fait accompli. And some fiscal hawks in his party see the deal as a betrayal.

Persons: Rand Paul, Bernie Sanders, Biden’s, Mitch McConnell, Kevin McCarthy, McCarthy, Jim Jordan of Organizations: Democratic, Republican, The Times, Republicans Locations: U.S, Kentucky, Vermont, Jim Jordan of Ohio

☆ The Calm Man in the Capital: Biden Lets Others Spike the Ball but Notches a Win
▼ + stars: | 2023-06-01 | by ( Peter Baker | ) www.nytimes.com time to read: +2 min

The president’s approach to the negotiations — and especially their aftermath — reflects a half-century of bargaining in Washington. When someone has been around the track as long as Mr. Biden has, resisting the temptation to spike the ball and claim victory can be critical to actually securing the victory in the first place. From the start of the clash with Mr. McCarthy’s Republicans, Mr. Biden has followed the instincts he has developed through long, hard and sometimes painful experience. In their view, Mr. Biden was too eager to get an accord even at the expense of policy concessions they found anathema and too passive in making the case for the pact once he signed off on it. The who-won debate now raging in Washington could shape the narrative for both parties as they navigate this new era of divided government.

Persons: Biden, McCarthy’s, Mr, ”, Jamaal Bowman Organizations: Senate, McCarthy’s Republicans, Republicans, Republican Party, ” Locations: Washington, New York

☆ McCarthy Emerges From the Debt Limit Fight With Victories, and Some Wounds
▼ + stars: | 2023-05-31 | by ( Carl Hulse | ) www.nytimes.com time to read: +1 min

When the debt limit fight began, it was widely assumed that Speaker Kevin McCarthy, untested and inexperienced in high-stakes negotiations, would either preside over an economically and politically calamitous government default or lose his hard-won post in a right-wing mutiny after caving to Democrats. So far, he has managed to avoid both outcomes while claiming some fiscal and policy wins. With House approval on Wednesday night of the debt limit package he personally negotiated with President Biden, Mr. McCarthy defied expectations and even earned grudging respect from White House officials while defusing the debt limit time bomb he himself planted by insisting on concessions in return for raising the nation’s borrowing limit. The bar was set low for Mr. McCarthy, known more for politicking and fund-raising than for policymaking, after he struggled mightily to win his post in the first place as House Republicans took control in January. But in the end, he delivered an agreement that met his goal of cutting spending from current levels.

Persons: Kevin McCarthy, Biden, McCarthy, mightily, — Organizations: White House, Mr, Republicans

☆ A Vote on the Debt Deal
▼ + stars: | 2023-05-31 | by ( Matthew Cullen | ) www.nytimes.com time to read: +1 min

The House will vote tonight on a bipartisan plan to suspend the nation’s debt ceiling for two years and limit spending as lawmakers race to act before a looming default. The legislation is a product of intense negotiations between President Biden and Speaker Kevin McCarthy, who demanded concessions from Democrats in exchange for suspending the borrowing limit. McCarthy predicted that he would have the necessary votes by around 8:30 p.m. Eastern time, when the final vote is expected. (We are covering it live.) My colleague Catie Edmondson told me that the bill was likely to pass, but that “something could always blow up.” The vote comes just days ahead of a June 5 deadline, when Treasury Secretary Janet Yellen has said the U.S. will run out of cash to pay all of its bills on time.

Persons: Biden, Kevin McCarthy, McCarthy, Catie Edmondson, Janet Yellen Locations: U.S

☆ Can McCarthy Pass the Debt Deal and Keep His Job?
▼ + stars: | 2023-05-31 | by ( Catie Edmondson | ) www.nytimes.com time to read: +1 min

A movement to depose Mr. McCarthy as speaker could still bubble up, particularly if he is forced to rely on Democrats to win a procedural vote to get the debt-limit deal to the floor or to lean more on Democratic votes than Republicans to pass the measure. So far, though, there has been little appetite for such a move among even the most conservative lawmakers in his conference. Mr. McCarthy negotiated the compromise with that threat in mind, attempting to strike a careful balance: he could — and likely would — lose conservatives’ votes, but could not afford to reach a deal that so infuriated the far right that they would move to oust him. One hard-right Republican so far — Mr. Bishop — has publicly said that he considered the debt and spending deal grounds for ousting Mr. McCarthy from his post. “Let’s get through this battle and decide if we want another battle,” Mr. Buck said was the response.

Persons: Mr, McCarthy, ’, Bishop —, Ken Buck, Scott Perry, “ Let’s, ” Mr, Buck Organizations: Democratic, Republicans, Republican, Mr, Freedom Caucus Locations: Colorado, Pennsylvania

☆ Four Questions About the Biden-McCarthy Debt Ceiling Deal - The New York Times
▼ + stars: | 2023-05-31 | by ( Ezra Klein | ) www.nytimes.com time to read: +3 min

In 2010 and 2011, the Obama administration negotiated over the debt ceiling in part because it wanted a debt deal. As long as the debt ceiling exists, there is no way to avoid negotiating over the debt ceiling. The way to get rid of the debt ceiling is to get rid of the debt ceiling. Defenders of the debt ceiling will tell you that it’s often the forcing mechanism for bipartisan debt deals, and as such, does more good than harm. Debt ceiling negotiations have become structurally unbalanced in a way that will make larger debt deals impossible.

Persons: McCarthy, Donald Trump’s, don’t, Obama, It’s, Biden Organizations: Republican, Social Security, Republicans, Democratic

☆ Packing Figures and Charts, Roy Leads G.O.P. Revolt Against Debt Limit Deal
▼ + stars: | 2023-05-31 | by ( Luke Broadwater | ) www.nytimes.com time to read: +1 min

At the height of Speaker Kevin McCarthy’s quest for his post in January, Representative Chip Roy, Republican of Texas, darted from meeting to meeting ensuring that hard-line conservatives got what they wanted before agreeing to back the California Republican. One by one, nearly all of their demands were met in what Mr. Roy would later call a “power-sharing” agreement between Mr. McCarthy and his right flank. He and his allies are attempting to shoot down the agreement Mr. McCarthy reached with President Biden to suspend the debt ceiling just days before the country is headed for default. If not, he said, the House Freedom Caucus might once again have to go toe-to-toe with Mr. McCarthy. Several members have floated the idea of calling for Mr. McCarthy’s removal.

Persons: Kevin McCarthy’s, Chip Roy, Roy, McCarthy, Mr, Biden Organizations: Republican, California Republican, Republicans, Caucus Locations: Texas, California

☆ 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.

☆ GOP lawmaker says Kevin McCarthy is 'emasculating himself' by striking a debt ceiling deal with Biden and calls for his removal as House speaker
▼ + stars: | 2023-05-30 | by ( Sonam Sheth | ) www.businessinsider.com time to read: +3 min

GOP Rep. Dan Bishop called for Kevin McCarthy's removal as House speaker after he struck a debt ceiling compromise with Biden. "All you're hearing from the mainstream media is Kevin McCarthy is an adult. Kevin McCarthy is a leader. Kevin McCarthy is responsible," Bannon said. Biden announced the debt ceiling deal on Sunday, saying it would take the threat of a "catastrophic default off the table."

Persons: Dan Bishop, Kevin McCarthy's, Biden, it's, Bishop, McCarthy, emasculating, —, Joe Biden, who's, excoriated McCarthy, Steve Bannon, Donald Trump's, Kevin McCarthy, Bannon, they're, Biden White, overreach Organizations: Republicans, Service, North Carolina Rep, Caucus, Republican, GOP, Democratic, North, White, Biden Locations: North Carolina

☆ What's in the debt limit bill? Key provisions in the Biden-McCarthy deal to avert default
▼ + stars: | 2023-05-30 | by ( Sahil Kapur | ) www.cnbc.com time to read: +2 min

In fiscal year 2024, it would limit military spending to $886 billion and nonmilitary discretionary spending to $704 billion. McCarthy said the deal was "historic," as it would amount to "cutting spending year-over-year for the first time in over a decade." Factoring in adjustments, the White House projects that when veterans funding is set aside, nondefense spending would barely change — with a slight reduction overall from 2023 to 2024. It would eliminate $1.4 billion in IRS funding and shift about $20 billion to nondefense funds. The bill would overhaul the National Environmental Policy Act to streamline permitting for projects; House Republicans tout it as "the first significant reforms to NEPA since 1982."

☆ DeSantis, Wading Into Debt-Ceiling Fight, Puts Pressure on Trump
▼ + stars: | 2023-05-30 | by ( Jonathan Weisman | ) www.nytimes.com time to read: +1 min

Ron DeSantis of Florida to oppose the debt-ceiling agreement struck by Speaker Kevin McCarthy and President Biden injected presidential politics into the fraught effort to raise the government’s borrowing limit, further dividing the Republican Party and pressuring other White House hopefuls to join the fight. Treasury Secretary Janet L. Yellen has predicted that the “extraordinary measures” she has used to pay the government’s obligations will be depleted by June 5. Mr. DeSantis’s broadside comes as Mr. McCarthy is trying to round up Republican votes to approve the deal this week. The first test will be Tuesday, when the House committee that sets the parameters and instructions for floor debate is set to report out the rule for the debt deal. The deal sets aside the statutory borrowing limit for two years, ensuring the issue will not re-emerge before the next presidential election, while imposing some caps on spending and some additional work requirements for food stamp recipients.

☆ Debt Limit Bill Heads to Key Committee in First Test of G.O.P. Support
▼ + stars: | 2023-05-30 | by ( Carl Hulse | ) www.nytimes.com time to read: +1 min

If they are joined by another Republican on the committee, they could sideline the agreement before it even reaches the floor. A third ultraconservative on the panel, Representative Thomas Massie of Kentucky, is considered a potential ally of Mr. Roy and Mr. Norman but has shown receptiveness to the debt limit deal. Lawmakers are generally expected to back bills they had a hand in writing, even if they object to other aspects. “This debt deal arguably puts us on a better footing to do the appropriations process properly,” Mr. Massie said on Twitter on Monday. members backing the bill could also look to Democrats on the panel for support for the measure.

☆ Explainer: What is the U.S. debt ceiling?
▼ + stars: | 2023-05-29 | by ( Jason Lange | ) www.reuters.com time to read: +4 min

WHEN WAS THE DEBT CEILING REACHED? IS THE DEBT CEILING GOOD FOR ANYTHING? Few counties in the world have debt ceiling laws and Washington's periodic lifting of the borrowing limit merely allows it to pay for spending Congress has already authorized. Others argue the debt ceiling itself violates the U.S. Constitution. In a 2011 showdown, House Republicans successfully used the debt ceiling to extract sharp limits on discretionary spending from Democratic President Barack Obama.

☆ Get ready to see millions of Americans lose their jobs if Congress doesn't raise the debt ceiling in the next few days
▼ + stars: | 2023-05-29 | by ( Madison Hoff | Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

The US could default on its debt as soon as June 5 if the debt ceiling isn't raised by then. That would translate to "7.8 million jobs lost from peak to trough," Yaros said. Other industries would see over half a million jobs lost in this scenario, including construction. "It's something closer to the 2001 recession that we had after the dot-com bubble, and you get about 1.5 million jobs lost from peak to trough," Yaros said. And 1.5 million jobs lost — that's still a huge human toll that was unnecessarily incurred."

☆ Biden and McCarthy's bumpy journey to a debt ceiling deal
▼ + stars: | 2023-05-29 | by ( Steve Holland | ) www.reuters.com time to read: +6 min

During months of tense exchanges over the U.S. 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. But it also preserves much of Biden's Inflation Reduction Act and punts the next debt ceiling showdown into 2025, which Republicans hate. Although he initially called for the debt ceiling to be raised without negotiations, he ended up making compromises.

☆ Republican tries to scuttle debt limit bill in House Rules Committee as pressure grows on key swing vote
▼ + stars: | 2023-05-29 | by ( Manu Raju | ) edition.cnn.com time to read: +4 min

That would essentially doom the debt ceiling bill since Roy – who sits on the panel – and another conservative committee member are trying to stop the bill from advancing. A third conservative who sits on the panel – Massie – has been mum about how he plans to handle the rule vote in committee. But in January, Massie told CNN he was reluctant to vote against rules to stop bills in their tracks. “And when I checked, there wasn’t a rule that something has to come out of Rules Committee unanimously. “I think that comment was that it had to be unanimous to come out of the Rules Committee to go to the floor is the tweet that I read.

☆ What’s in the Bipartisan Debt Limit Agreement
▼ + stars: | 2023-05-29 | by ( Jim Tankersley | Alan Rappeport | ) www.nytimes.com time to read: +2 min

The bill also claws back about $30 billion in unspent money from a previous Covid relief bill signed by Mr. Biden, which had been a top Republican priority entering negotiations. Congress must fill them in by passing a raft of spending bills later this year. The agreement between Mr. Biden and Mr. McCarthy attempts to prod Congress to pass all its spending bills and avoid a shutdown, by threatening to reduce spending that is important to both parties. What’s not in the billThe final agreement includes far less reduction in future debt than either side proposed. Mr. Biden wanted to raise taxes on corporations and high earners, and to take new steps to reduce Medicare’s spending on prescription drugs.

[1/3] U.S. President Joe Biden hosts debt limit talks with U.S. House Speaker Kevin McCarthy (R-CA) in the Oval Office at the White House in Washington, U.S., May 22, 2023. Here's what we know so far:A CAP ON DISCRETIONARY SPENDINGThe deal would suspend the $31.4 trillion debt ceiling until January of 2025, allowing the U.S. government to pay its bills. Republicans have told their members that non-defense discretionary spending would be cut to 2022 levels, apart from veterans' healthcare, which would remain fully funded. The U.S. government will spend $936 billion on non-defense discretionary spending in 2023. 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 per borrower is under review by the Supreme Court.

WASHINGTON, May 27 (Reuters) - U.S. President Joe Biden and top congressional Republican Kevin McCarthy reached a tentative deal to suspend the federal government's $31.4 trillion debt ceiling on Saturday evening, ending a months-long stalemate. Biden and McCarthy held a 90-minute phone call earlier on Saturday evening to discuss the deal, McCarthy briefed his members later in the evening, and the White House and the House leader spoke afterward. [1/6] General view of the U.S. Capitol after U.S. House Speaker Kevin McCarthy (R-CA) reached a tentative deal with President Joe Biden to raise the United States' debt ceiling and avoid a catastrophic default, in Washington, U.S. May 27, 2023. The long standoff on raising the debt ceiling spooked financial markets, weighing on stocks and forcing the United States to pay record-high interest rates in some bond sales. The work to raise the debt ceiling is far from done.

[1/3] U.S. President Joe Biden hosts debt limit talks with U.S. House Speaker Kevin McCarthy (R-CA) in the Oval Office at the White House in Washington, U.S., May 22, 2023. REUTERS/Leah MillisWASHINGTON, May 27 (Reuters) - U.S. President Joe Biden and House Republican Speaker Kevin McCarthy on Saturday reached an agreement in principle to lift the debt ceiling that would trim some U.S. federal spending. Here's what we know so far:A CAP ON DISCRETIONARY SPENDINGThe deal would suspend the $31.4 trillion debt ceiling until January of 2025, allowing the U.S. government to pay its bills. In exchange, non-defense discretionary spending would be capped at current year levels in 2024 and increased by only 1% in 2025. INCREASED DEFENSE SPENDINGThe deal is expected to boost defense spending to around $885 billion, in line with Biden's 2024 budget spending proposal.

☆ Debt ceiling deal will be 'transformational' for Americans, McCarthy says
▼ + stars: | 2023-05-28 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

U.S. President Joe Biden hosts debt limit talks with U.S. House Speaker Kevin McCarthy (R-CA) in the Oval Office at the White House in Washington, U.S., May 22, 2023. REUTERS/Leah MillisHouse Speaker Kevin McCarthy said Sunday that the tentative deal House Republicans have reached with the White House to address the nation's debt ceiling will be "transformational" for the American public. Treasury Secretary Janet Yellen warned that failing to raise the debt ceiling by early June could result in "economic chaos." Some House Republicans, like Rep. Chip Roy of Texas, have been vocal critics of the deal on social media. McCarthy on Sunday encouraged members of Congress to read the bill when it's released before taking a stance.

☆ Biden and McCarthy reach debt ceiling deal, avoiding national default
▼ + stars: | 2023-05-28 | by ( Katherine Tangalakis-Lippert | ) www.businessinsider.com time to read: +3 min

The White House and House of Representatives have reached an agreement in debt ceiling talks. Representatives for the White House and Rep. McCarthy did not immediately respond to Insider's request for comment. The GOP, spearheaded by McCarthy, has insisted that a debt ceiling raise should be tied to advancing their party's priorities through spending cuts. Republican proposals in the debt ceiling negotiations included banning student-loan forgiveness, bolstering work requirements on welfare programs, and rescinding unspent pandemic funding, Insider previously reported. Since its introduction in 1917, the debt ceiling has been raised dozens of times to avoid such outcomes, Insider previously reported.

☆ Debt Ceiling Deal: What's in – and What's Been Left Out?
▼ + stars: | 2023-05-28 | by ( Associated Press | ) www.businessinsider.com time to read: +4 min

Work requirementsRepublicans had proposed boosting work requirements for able-bodied adults without dependents in certain government assistance programs. Democrats had roundly criticized the proposed changes, saying they would lead to fewer people able to afford food or health care without actually increasing job participation. However, the agreement would expand some work requirements for the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps. The budget agreement keeps Biden's student loan relief in place, though the Supreme Court will have the ultimate say on the matter. The Supreme Court is dominated 6-3 by conservatives, and those justices' questions in oral arguments showed skepticism about the legality of Biden's student loans plan.

☆ Initial Takeaways From the Spending and Debt Ceiling Deal
▼ + stars: | 2023-05-28 | by ( Peter Baker | ) www.nytimes.com time to read: +1 min

President Biden and Speaker Kevin McCarthy reached an agreement on Saturday to raise the debt ceiling while imposing new restraints on federal spending. If approved by Congress, it will end a partisan deadlock and avert a potentially devastating national default. The deal will not only resolve the high-octane dispute over debt and spending issues that has gripped Washington for weeks but also enact important changes in environmental permitting, work requirements for social safety-net programs, and Internal Revenue Service tax enforcement. The debt ceiling would be increased until 2025, after the next election. The federal government reached the $31.4 trillion debt ceiling set by law in January, but the Treasury Department has been using various accounting tricks to avoid breaching it.

☆ With Debt Limit Deal in Hand, McCarthy and Biden Turn to Task of Selling It
▼ + stars: | 2023-05-28 | by ( Luke Broadwater | Chris Cameron | ) www.nytimes.com time to read: +1 min

“Terrible policy, absolutely terrible policy,” Representative Pramila Jayapal, Democrat of Washington, said on CNN’s “State of the Union,” referring to the work requirements for food stamps and other public benefit programs. Some on the right had already ruled out doing so before seeing the details. “No one claiming to be a conservative could justify a YES vote,” Representative Bob Good, Republican of Virginia and a member of the House Freedom Caucus, wrote on Twitter. Representative Dan Bishop, Republican of North Carolina, posted his reaction to news of the deal: a vomit emoji. Some Senate Republicans, who under that chamber’s rules have more tools to slow consideration of legislation, were also up in arms.

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