McCarthy said in a tweet on Twitter, “I just hung up on the President. After wasting time and refusing to negotiate for months, we have reached an agreement in principle that the American people deserve.”
Biden described the deal in a statement as “an important step forward” and said, “The deal represents consensus, which means not everyone gets what they want. This is the responsibility of the government”.
The agreement raises the debt ceiling for two years and reduces spending over the same period.
This also includes the recovery of funds that were intended to fight the COVID-19 pandemic and which have not been used, the acceleration of the approval process for certain energy projects and certain additional working conditions for energy programs. food aid to poor Americans.
Biden and McCarthy had a 90-minute phone call Saturday to discuss the deal.
“We still have a lot of work to do tonight to finalize the text of the agreement,” McCarthy told reporters in Congress.
He indicated that he expects to finish drafting the text of the draft agreement on Sunday, and then he will speak to Biden.
A vote on the deal is expected on Wednesday.
“This includes historic spending cuts and subsequent reforms that will lift people out of poverty into the workforce. There are no new taxes or government programs,” he said.
A source familiar with the matter said negotiators had agreed to keep non-military spending at this year’s level for another year and to increase it by 1% in 2025.
If the deal passes Congress before the Treasury Department can find the money to cover all of its debts, the country will avoid a destabilizing default.
And the Treasury Department warned on Friday that could happen unless the debt ceiling is raised before June 5.
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