Negotiations on US debt ceiling approaching a deal

File – Republican Kevin McCarthy speaking to reporters on Capitol Hill – MICHAEL BROCHSTEIN / PRESS ZUM / CONTACT PHOTO


According to reports from ‘The New York Times’ and ‘CNBC’, White House and United States Congress negotiators were to approach a settlement agreement this Friday to raise the debt limit for a two-year term.

As sources familiar with the situation explained to the New York newspaper, the compromise, if eventually agreed to and enacted, would raise the government’s borrowing limit to two years after the 2024 election in exchange for some cuts in federal spending.

Less than a week before the country was at risk of default, Republicans, in exchange for voting to raise the debt ceiling, would have managed to achieve a reduction in federal spending and $80,000 million in partial adjustments in most discretionary programs in 2024 (€74,558m) Income Under the Inflation Reduction Act. assigned to the Administration.

Sources familiar with CNBC therefore informed CNBC that the money canceled from the IRS will be used to cover much of the local funding gap created by the GOP spending cuts, although it technically lowers the overall figure by preserving programs.

On his side, the Pentagon and veterans’ health benefits would survive any cuts, and the next year would see their funding increase.

Underscoring the fluidity of the situation, such a deal could offer victory to both sides, as Republicans could offer cuts in public spending for fiscal 2024, while Democrats argue they keep the biggest national programs, according to the US network. .

Source: Noti Merica

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