The United States debt ceiling is currently $31.4 trillion. By what amount they will be raised, it is not yet revealed.
Congress is scheduled to vote on the deal on Wednesday, May 31.
The US Treasury estimated that the US national debt ceiling would be reached on June 5.
Biden said the deal was good news for the American people because it would prevent a potentially catastrophic default that would lead to an economic recession and millions of lost jobs.
McCarthy, who called Biden on Saturday to hammer out a deal, said there was still work to be done but expressed confidence the deal was a good one.
To allow the government to continue borrowing money and remain solvent, the national debt ceiling has been raised, extended or revised a total of 78 times since 1960.
This usually happens without much political fuss, but this year, in exchange for votes to raise the debt ceiling, congressional Republicans demanded significant spending cuts and changes to Biden’s policies, including the student loan repayment program and green energy tax credits. Democrats opposed it.
But by all accounts, both sides have made some concessions.
A source informed about the negotiations revealed that the agreements provide for an increase in the debt ceiling for two years, which means that in 2024, when the US presidential elections are scheduled, such negotiations will not be necessary.
But there are no major spending cuts that Republicans wanted, but non-defense spending will effectively remain flat next year and grow by just 1% in 2025, the source said.
