Biden speaks on debt ceiling deal: ‘Stakes were high’

President Joe Biden recently addressed the nation from the Oval Office on June 2, promoting the recent debt ceiling agreement that prevented a historic U.S. default. He emphasized the significance of the deal he reached with House Speaker Kevin McCarthy (R-Calif.) and said he would sign the bill into law on Saturday.

Biden’s Legislative Wins

During his address, Biden highlighted his legislative wins and said he protected important priorities such as Social Security, Medicare, veterans’ benefits, infrastructure, and clean energy investments. He also noted that he would continue to prioritize raising revenue by increasing taxes, going after tax evaders, and ensuring that everyone pays their fair share.

How Negotiations Began

In January, Treasury Secretary Janet Yellen informed Congress that the United States would soon surpass its $31.4 trillion debt ceiling. House Speaker Kevin McCarthy (R-Calif.) demanded that the White House reduce spending in exchange for raising the limit. Biden refused to negotiate, saying it would put the “full faith and credit of the United States” at risk. The impasse was broken on April 26 when House Republicans passed the Limit, Save, Grow Act, which included an increase in the debt ceiling as well as spending cuts that reflected Republican priorities. Negotiations began in earnest on May 9 and lasted for three weeks.

The Bill

The Financial Responsibility Act suspends the debt ceiling until Jan. 1, 2025, slightly reduces non-defense discretionary spending in 2024, and caps discretionary spending growth at 1 percent in 2025. The deal also includes oil and gas drilling permitting reforms, revisions to work requirements for some social welfare programs, and clawbacks of $20 billion in IRS funding and $30 billion in unspent COVID-19 relief funds.

Bipartisan Support

The bill was approved by the House on May 31 by a bipartisan vote of 314 to 117, and it cleared the Senate on June 1 by a bipartisan vote of 63 to 36. House Minority Leader Hakeem Jeffries (D-N.Y.) and Senate Majority Leader Chuck Schumer (D-N.Y.) both expressed their support for the bill.

“We have saved the country from the scourge of default.” – Senate Majority Leader Chuck Schumer (D-N.Y.)

President Biden concluded his address by stating that the American people ultimately won and that the debt ceiling agreement averted an economic crisis and economic collapse. He also expressed his determination to continue working for the American people and to win with their help.

“I’m going to be coming back and with your help, I’m going to win.” – President Joe Biden