Biden and McCarthy come to agreement on debt ceiling issue.

Speaker of the House Kevin McCarthy and President Joe Biden reached an agreement to raise the debt ceiling, McCarthy announced Saturday.

“I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we’ve come to an agreement in principle that is worthy of the American people,” the Speaker tweeted.

Flanked by chief GOP negotiators Rep. Garret Graves of Louisiana and Patrick McHenry of North Carolina, McCarthy announced at a late-night press briefing that while the negotiators still have work to do, their agreement has “historic reductions in spending, consequential reforms that will lift people out of poverty into the workforce, reign in government overreach.”

“There are no new taxes, no new government programs. There’s a lot more within the bill. We still have more work to do tonight to finish all the writing of it,” he added while declining to take questions from reporters.

McCarthy did not release more information about the agreement, saying he would not do so until he briefs the House Republican Conference. The Speaker added he would release the bill’s text Sunday and schedule a vote for Wednesday, May 31. The House was originally scheduled to be on its Memorial Day recess through the week though members were told they would receive 24 hours’ notice to return to Washington to vote once a deal has been reached.

According to a fact sheet distributed by McCarthy to congressional Republicans, the Fiscal Responsibility Act will roll back non-defense discretionary spending to Fiscal Year 2022 levels. It will also resume student loan payments and cap federal spending increases to one percent per year over a six-year period. It also includes work requirements for welfare recipients and permitting reform, both of which were originally passed in the Limit, Save, Grow Act at the beginning of May.

Treasury Secretary Janet Yellen said Saturday the federal government will default on its debts by June 5, later than initial estimates for June 1.

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