Biden, McCarthy strike tentative deal to slow spending and raise debt limit 

‘Agreement in principle’ must still pass House and Senate to avert debt default by June 5.

Published: May 27, 2023 9:17pm

Updated: May 27, 2023 11:46pm

President Joe Biden and House Speaker Kevin McCarthy struck a tentative deal late Saturday to slow federal spending and raise the debt limit, a key step to averting a default on the nation’s debt by early next month.

Multiple officials confirmed to Just the News Saturday night that an “agreement in principle” had been reached for a two-year budget that holds spending flat in 2024 and limits spending growth to 1 percent in 2025. The debt limit would be raised until after the next presidential election.

The deal must still be fleshed out and pass the House and Senate to avoid a U.S. default, the officials said.

“We still have a lot of work to do. But I believe this is an agreement in principle that's worthy of the American people,” McCarthy said. “It has historic reductions in spending, consequential reforms that will lift people out of poverty into the workforce, rein in government overreach.

"There are no new taxes, no new government programs. There's a lot more within the bill," he added.

Biden said the compromise “means not everyone gets what they want.”

"It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone,” the president said. “And, the agreement protects my and Congressional Democrats’ key priorities and legislative accomplishments.”

Negotiators agreed to some Republican demands for enhanced work requirements on recipients of food stamps, an idea strongly opposed by many Democrats.

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