US media reports revealed that the agreement to prevent debt default in the United States includes a two-year increase in the national debt ceiling in return for reducing federal spending.
“The agreement, in principle, raises the debt ceiling for a period of two years, limits non-defense spending for 2024, and increases it by 1% in the fiscal year 2025,” CNN reported, quoting an unnamed source.
The network quoted a source familiar with the talks as saying that the debate between the White House and the Republicans, who control the House of Representatives, over the issue of the national debt ceiling focused on increasing it or canceling it temporarily, which the opposition linked to limiting budget spending.
Without congressional approval for additional borrowing, the United States, according to Treasury calculations, was already at risk at the beginning of June of not being able to meet its obligations in full.
Earlier, US President Joe Biden and House Speaker Kevin McCarthy announced that an agreement had been reached “in principle”, but they did not provide any additional details.
The two parties stated that the agreement, after its completion, will be published on Sunday, and will be submitted in the form of a bill next Wednesday to Congress for approval.
This article was originally published by RT.
