President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) over the weekend agreed to a proposal that would raise the debt ceiling and address future spending levels.
The bill text, released over the weekend, also contains a provision that would codify the Biden administration’s planned resumption of student loan repayments by sunsetting the payment pause and interest accrual 60 days after June 30, 2023.
The language mirrors the planned end of repayment suspension that the administration put forward last fall to address the uncertainty surrounding the legal challenges to its student loan debt cancellation program.
In terms of the spending levels that were agreed to, the measure would raise the debt ceiling through 2025, which means future negotiations over a debt ceiling would not be addressed until after the next presidential election.
If Congress does not complete the appropriations process before Jan. 1, 2024 the bill would also enact an automatic continuing resolution which would prevent a government shutdown by implementing a 1% funding cut from the previous fiscal year. This provision would only be in effect for fiscal year 2024 and 2025 spending bills.
The House is expected to vote on the bill on Wednesday, May 31.
Stay tuned to Today’s News for more coverage of these spending negotiations.
Publication Date: 5/30/2023