Congress gained a few days because the country’s treasury won’t be drained until June 5, not June 1, according to an updated estimate reported Friday by US Treasury Secretary Janet Yellen.
The deal between Democratic President Joe Biden and Republican House Speaker Kevin McCarthy is expected to be approved by lawmakers, some of whom have expressed strong opposition.
If this does not happen, the United States runs the risk of defaulting on its debts, which is an unprecedented event whose repercussions could be catastrophic for the economy.
The House Rules Committee gave its first indication of the direction on Tuesday by approving the bill by seven votes in favor, six against, with two Republicans and four Democrats voting against.
Now the text is presented to the House of Representatives, which has a Republican majority, and a vote is expected to take place in plenary session on Wednesday, before the text is presented to the Senate, which has a Democratic majority, to a vote on that too.
On Tuesday, Biden called on lawmakers to “firmly” pass the law, which is the result of a settlement he personally brokered.
“Let’s move forward with our commitments to build the most powerful economy in human history,” he said on Twitter.
But McCarthy still has the toughest task of persuading her Republican majority to ratify the new law so it doesn’t appear dependent on Democratic representatives.
This task is likely to be more difficult than expected because the opposition within the Republican Party is not limited to supporters of former President Donald Trump in the House.
Republican Opposition
South Carolina Republican Representative Nancy Mace confirmed on Twitter on Tuesday that she would not vote for this solution.
“This (agreement) legitimizes the record level of federal spending achieved during the pandemic and establishes it as a baseline for future spending,” she wrote.
On the side of Trump supporters within the party, Texas Rep. Chip Roy denounced “a bad deal,” saying “no Republican should vote on it.”
“We will continue to fight today and tomorrow no matter what,” he said.
Some right-wing Republicans are even considering a no-confidence motion to force Kevin McCarthy out of the administration. This proposal can only be presented by one Member.
On the side of the Democrats, some elected officials also show doubts, such as Ro Cana, an elected official from California, who estimated that many representatives of his party opposed to the budget cuts “do not yet know how they will vote”.
The deal calls for raising the US public debt ceiling for two years, until after the 2024 presidential elections.
The deal did not include the deep cuts Republicans want, though non-defense spending will remain virtually unchanged next year, rising only nominally in 2025.
It also includes a $10 billion cut in tax service funds to modernize and strengthen controls, which was a Republican request, as well as a refund of COVID-19 funds that have not yet been spent.
By contrast, McCarthy’s office said the deal provides for the recovery of “billions of dollars in Covid money that went unspent” during the outbreak, but did not elaborate further.
There is a big point of contention. The regulation includes changes to the conditions for receiving certain social benefits, so that adults without children must work until the age of 54, not 49, to receive food aid, but it removes this obligation to work for old people. fighters and the homeless.
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