Debt ceiling deal: Full text to prevent default.

Compromise Debt Ceiling Bill Released by Speaker Kevin McCarthy’s Office

The bill, dubbed the Fiscal Responsibility Act of 2023, will suspend the debt ceiling for roughly two years in exchange for a slew of spending clawbacks and other reforms.

Speaker Kevin McCarthy’s (R-CA) office has released the full text of the compromise debt ceiling bill, which is expected to be voted on for passage on Wednesday. The bill, known as the Fiscal Responsibility Act of 2023, will suspend the debt ceiling for approximately two years in exchange for a series of spending clawbacks and other reforms.

Biden and McCarthy’s Tentative Deal Raises Debt Ceiling Until 2025

Both sides announced a tentative breakthrough on the monthslong impasse on Saturday, and staff quickly began working to draft up the text of the bill shortly thereafter. As part of the deal, non-defense and non-veteran discretionary spending growth will be effectively kept down until 2024 before increasing by roughly 1% in 2025.

In a joint statement, McCarthy, Majority Leader Steve Scalise (R-LA), Majority Whip Tom Emmer (R-MN), and Chairwoman Elise Stefanik (R-NY) said, “The American people elected House Republicans to stop the out-of-control inflationary spending that has broken family budgets. Today, we secured a historic series of wins worthy of the American people.”

Other provisions of the bill include rescinding unspent COVID-19 funds, reducing the planned IRS expansion, adding stricter work requirements to Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP), as well as permitting reform.

President Biden Maintains Position on Debt Ceiling Deliberations and Budget

The United States first bumped up against its $31.4 trillion debt limit back in January, and the Treasury Department has been deploying “extraordinary measures” to keep the money flowing. President Joe Biden still maintains his position that the debt ceiling deliberations and budget were distinct.

“You want to try to make it look like I made some compromise on the debt ceiling — I didn’t. I made a compromise on the budget,” Biden said Sunday.

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