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President Biden, House Speaker McCarthy Reach Deal on Borrowing Limit

President Joe Biden and House Speaker Kevin McCarthy on Sunday reached a bipartisan agreement to suspend the debt ceiling for two years, reduce government spending during the period and increase military spending by approximately 3 percent, The Wall Street Journal reported Monday.

The deal would curb spending on domestic programs and increase the age of people who must work to get food assistance under the Supplemental Nutrition Assistance Program while removing work requirements for veterans, homeless and young individuals who are leaving foster care, according to WSJ.

Treasury Secretary Janet Yellen has said the government could default on its obligations by June 5, if Congress fails to raise or suspend the debt limit.

According to the report, procedural hurdles in the House and Senate could slow the passage of the deal seeking to prevent a default, including the need for the measure to pass through the House Rules Committee before reaching the lower chamber’s floor.

McCarthy promoted the debt ceiling agreement as a significant spending reform.

Biden said the bipartisan budget deal marks a key step in taking “the threat of catastrophic default off the table.”

“That agreement now goes to the United States House and to the Senate. And I strongly urge both — both chambers to pass that agreement,” the president said in a statement published Sunday.

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