Tuesday, March 19, 2024

Inside The Debt Ceiling Deal

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The showdown is rapidly coming to a close on Capitol Hill.

On Wednesday, the House passed the 99-page bill by a vote of 314-117, sending the bill to the upper chamber. Once passed by the Senate, the bill will avert a default on the nation's $31.4 trillion debt and limit discretionary spending.

The passage of the bill was a mark of success for House Speaker Kevin McCarthy, R-Calif., who struggled to win the gavel in January.

While the bipartisan bill halts the threat of government default until 2025 still has work to do to actually fund the government before Oct. 1 or face a shutdown.

Republicans ultimately conceded to keep non-defense spending the same in 2024, with a 1% rise in 2025.

The spending bill also stipulates the return of unused funds allocated for the COVID-19 public health emergency. The Congressional Budget Office has estimated approximately $30 billion in funds have remained untouched. President Biden signed a bill officially ending the public health emergency in April.

During negotiations over the bill, Republicans pushed to tighten welfare regulations with stricter work requirements.

The welfare being looked at by Republicans included Medicaid, the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF).

In a significant win for Democrats, lawmakers secured $80 billion for the Internal Revenue System (IRS) to enforce the tax code in last year's Inflation Reduction Act on America's wealthiest. Republicans argued against the measure, claiming the funds would be used to weaponize the IRS against Americans by hiring an army of agents. (RELATED: IRS Issues New Strategic Plan – See What They Actually Want)

Democrats also unsuccessfully negotiated for higher taxes for wealthy Americans.

Lawmakers also reached a deal with President Biden regarding student loans. Under the deal, federal student loan repayments and interest accrual would restart on Aug. 30 after a three-year pause.

The deal also prohibits Secretary Miguel Cardona from extending the pause on federal student loan payments without a vote by Congress, according to Fox Business.

The debt-ceiling compromise does not address President Biden's plan to wipe out student loan debt for millions of borrowers.

Over 70 Republicans voted against the deal after the House Freedom Caucus heavily criticized it. Dozens of progressives also opposed the bill, arguing that President Biden didn't fight harder against McCarthy's budget cuts.

Rep. Patrick McHenry, R-N.C., one of the GOP negotiators for the debt bill, told The Hill that the had “for damn sure” underestimated McCarthy.

has always been underestimated,” McHenry said.

But critics of the deal on both sides of the aisle remain undeterred.

READ NEXT: Debt Ceiling Bill Heads To Final Vote In Democratic-Controlled Senate

Nancy Jackson
Nancy Jackson
Nancy grew up in the South where her passion for politics first began. After getting her BA in journalism from Ole Miss she became an arts and culture writer for Athens Magazine where she enjoyed reporting on the eclectic music and art scene in Athens, GA. However, her desire to report on issues and policies impacting everyday Americans won out and she packed her bags for Washington, DC. Now, she splits her time between the Nation’s Capital and Philadelphia where she covers the fast-paced environment of politics, business, and news. In her off time, you can find Nancy exploring museums or enjoying brunch with friends.

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