Debt deal between Biden and McCarthy

[Opti]

www.cnn.com/2023/05/30/politics/whats-in-the-debt-ceiling-deal/index.html#:~:text=Here%E2%80%99s%20what%20we%20know%20about%20the%20deal%2C%20based,a%20potential%20issue%20in%20the%202024%20presidential%20election.

Under the deal, non-defense spending would remain relatively flat in fiscal 2024 and increase by 1% in fiscal 2025, after certain adjustments to appropriations were made, according to a White House official. After fiscal 2025, there would be no budget caps.
But the adjustments would bring the resources available for spending outside of veterans’ medical care to $637 billion for the coming fiscal year, compared to $638 billion for the current one.


Under the deal, $11 billion in rescinded unobligated Covid-19 relief funds and $10 billion in money shifted from the Internal Revenue Service would be used to beef up non-defense discretionary spending. Also, $10 billion in funds repurposed from mandatory programs and $23 billion that’s designated as emergency funding would be shifted.

The deal would maintain full funding for veterans’ health care and would increase support for the PACT Act’s toxic exposure fund by nearly $15 billion for fiscal year 2024, according to a White House source.


The House GOP fact sheet says veterans’ medical care would be fully funded.



The agreement calls for temporarily broadening of work requirements for certain adults receiving food stamps.

Currently, childless, able-bodied adults ages 18 to 49 are only able to get food stamps for three months out of every three years unless they are employed at least 20 hours a week or meet other criteria. The agreement would increase the upper limit of the mandate to age 55 in phases, according to the bill text.


No real surprises to me. GOP wants to keep the option of not capping defense spending yet is against current defense spending because Biden and the Dems want to assist Ukraine, because we recognize the threat of an unchecked Russia. Prior to Trump, I like to think most of the GOP did too.

The usual cuts in benefits to make the GOP happy as if FT jobs are falling of the trees for anyone 18 to 49.     Those that have to bike or walk to work or limit themselves to bus runs will have to play benefit math like Carl used to tell us about. I think the potential debt ceiling fallout is why I saw no celebrations here by anyone really in the complex, but especially Hispanic families who used to do barbeques and what not on Memorial day or the next closest good weather day. Weirdly quiet Memorial day in my micro area of NJ and it wasn't because people were gone for the weekend elsewhere. 

[Opti]

FWIW, watched the vote pass the House on CBS news. Hope this is good news for anyone effected negatively from it not passing sooner.

[ripvanwinkle]

May 31, 2023 20:58:11 GMT -5 Opti said:

FWIW, watched the vote pass the House on CBS news. Hope this is good news for anyone effected negatively from it not passing sooner.

I haven't heard what concessions both parties made to reach the debt ceiling deal but who knows. Did McCarthy and crew use a razor sharp knife or a dull butter knife? If both sides had 6mo to do this why does it always take up to the last minute to raise the debt ceiling. They all know it will be raised.

[pulmonarymd]

The House is responsible for budget deals. Republicans w as tied do they could put pressure on bidrn for cuts, and for political theater. Now that it is done, they can go back to business as usual, and pass a budget with deficit spending, and pontificate on how bad deficits are while doing nothing to stop the spending

[Opti]

May 31, 2023 22:39:00 GMT -5 ripvanwinkle said:

May 31, 2023 20:58:11 GMT -5 Opti said:

FWIW, watched the vote pass the House on CBS news. Hope this is good news for anyone effected negatively from it not passing sooner.

I haven't heard what concessions both parties made to reach the debt ceiling deal but who knows. Did McCarthy and crew use a razor sharp knife or a dull butter knife? If both sides had 6mo to do this why does it always take up to the last minute to raise the debt ceiling. They all know it will be raised.

Some of the concessions are in the OP, some are in the article I linked in the OP and you probably can find even more details by searching and reading.

One part of the agreement was to somewhat kick the can down the road so the budget ceiling could not affect the 2024 elections. It will however affect the President in office in Jan 2025 (part of the agreement). There will be opinions a plenty but one pundit on CBS thought McCarthy did well in getting his coaltion to act on this.

[Opti]

And now the Senate. Not sure where we are, have not accessed any news today, except saw this -


The clock continues to tick as a bipartisan bargain to raise America’s debt ceiling faces an arguably riskier trial now that it has cleared the Republican-controlled House.



That’s because just one senator in the Democratic-run chamber has the power to thwart the plan reached by President Joe Biden and Speaker Kevin McCarthy ahead of the June 5 default deadline.



Even a small procedural motion could delay the deal’s passage, which the White House and congressional leaders warn could put financial markets and average Americans at risk.

Senate Majority Leader Chuck Schumer, D-N.Y., reiterated Thursday that brinksmanship isn't an option and that senator's should be prepared to stay as long as it takes.



"The Senate will stay in session until we send a bill avoiding default to President Biden's desk," he said. "We will keep working until the job is done. Time is a luxury the Senate does not have."

www.msn.com/en-us/news/politics/senate-leaders-must-now-navigate-debt-ceiling-deal-3-things-to-know/ar-AA1bYujN?ocid=msedgntp&cvid=2a0e6f3668f54b1e89b69b97cd33d1c3&ei=8