Biden defends debt limit compromise despite bipartisan criticism.

Biden Defends Tentative Deal with McCarthy to Raise Debt Ceiling

“We’ve got good news,” Biden said from the White House on Sunday evening. “I spoke with Speaker McCarthy and we’ve reached a bipartisan agreement that we’re ready to move to the full Congress.”

President Joe Biden has defended his tentative deal with House Speaker Kevin McCarthy (R-CA) to raise the debt ceiling, calling it “good news” for the country. The deal, which was reached on Saturday evening, would raise the debt ceiling for two years and enact spending cuts to avert a debt default. However, the deal has faced criticism from both progressives and hard-line conservatives.

The Details of the Deal

The deal would roll back non-defense discretionary spending to Fiscal Year 2022 levels and cap top-line federal spending to one-percent annual growth over the next six years. The debt ceiling would be raised until January of 2025, and nearly $29 billion in unspent COVID relief funds would be clawed back. Work requirements would also be added to the Temporary Assistance for Needy Families program and the Supplemental Nutrition Assistance Program up to age 54. The deal would also claw back the $1.9 billion appropriated to the Internal Revenue Service for the 87,000 new agents, implement a temporary 99% continuing resolution cap until all 12 appropriations bills are passed, and would restart student loan payments in 60-days.

Biden’s Defense of the Deal

Despite the criticism, Biden has defended the deal, stating that it takes the threat of catastrophic default off the table and protects the country’s hard-earned economic recovery. He also emphasized that the agreement represents a compromise, and that no one got everything they wanted. When asked about concerns from Democrats that he gave away too much in negotiations with McCarthy, Biden replied, “They’ll find I didn’t.” He also dismissed claims that the deal would cause hunger for poorer Americans as “a ridiculous assertion.”

The debt ceiling will need to be raised or abolished next month to avert a default, and economists have warned that such a default would wreak havoc on the economy. Treasury Secretary Janet Yellen has stated that the United States will be unable to pay its bills by June 5.

Overall, the tentative deal between Biden and McCarthy has been met with mixed reactions. While it may avert a debt default, it has also faced criticism for its spending cuts and work requirements. Only time will tell if the deal will ultimately be passed by Congress.