- Title: White House 'dodged a bullet' with deal on debt ceiling - analyst
- Date: 28th May 2023
- Summary: BETHESDA, MARYLAND, UNITED STATES (MAY 28, 2023) (REUTERS) (SOUNDBITE) (English) GEORGE WASHINGTON UNIVERSITY PROFESSOR OF POLITICAL SCIENCE, SARAH A. BINDER, SAYING: "We don't know exactly everything in the deal, but it does seem that with the support of President Biden on behalf of the Democrats -- and some very positive spin and signs from Republicans --that this is a r
- Embargoed: 11th June 2023 17:54
- Keywords: Congress Debt ceiling House of Representatives President Joe Biden Sarah Binder Senate Speaker of the House Kevin McCarthy
- Location: VARIOUS
- City: VARIOUS
- Country: US
- Topics: Budget/Taxation/Revenue,North America,Government/Politics
- Reuters ID: LVA004571528052023RP1
- Aspect Ratio: 16:9
- Story Text: U.S. President Joe Biden and top congressional Republican Kevin McCarthy on Saturday (May 27) reached a tentative deal to avert a default on U.S. debt, but now they must get it through Congress.
Political science professor Sarah Binder, of George Washington University, said the deal to raise the U.S. debt ceiling offers enough for both parties to likely win passage in both the House and the Senate.
"It does seem that with the support of President Biden on behalf of the Democrats and some very positive spin from Republicans that this is a relatively small deal but gets the job done, raises the debt limit, maybe a slight cutback in federal spending."
But McCarthy and Biden will be under pressure to get it signed into law before time runs out. The Treasury has projected the U.S. will run out of funds to pay its bills by June 5th, which could bring an unprecedented default with dire implications for the U.S. economy.
"At the end of the day, most expect the bill to pass.," Binder said. "The question is how much leeway are they giving the Treasury Department before they really hit that January 5th deadline?"
The deal would suspend the debt limit while capping spending in the 2024 and 2025 budgets, claw back unused COVID funds, speed up the permitting process for some energy projects and includes some extra work requirements for food aid programs for poor Americans.
"There are already requirements for certain aged people to get a job for a certain number of hours a week in order to receive their food stamps. This deal will basically increase the age of those who have to show that they can that they can work," Binder explained.
After months of back-and-forth, the tentative agreement came together in a call between Biden and McCarthy on Saturday evening.
McCarthy on Sunday dismissed vehement opposition among party hardliners to suspend the $31.4 trillion debt ceiling for two years, predicting that most House Republicans would support the deal.
To win the speaker's gavel, McCarthy agreed to enable any single House member to call for a vote to unseat him, potentially making him vulnerable to ouster by disgruntled Republicans. The speaker said he was "not at all" concerned about that possibility.
"I think all of us collectively have underestimated Speaker McCarthy," said Binder. "I don't see his speakership in danger. I think there are really two reasons. First, there's been an extraordinary effort, it appears, to try to build support all along and to keep informed the folks on his side of the aisle. Second ... I think his rank and file are quite pleased with him."
Democrats, who were due to be briefed on the deal at 5 p.m. by the White House, had feared the agreement would parallel a Republican debt ceiling plan that passed the House last month and would have imposed deep cuts on domestic spending.
"I think the Democrats here ...can claim they did quite well in negotiations and stood up for Democratic priorities," Binder said.
The deal boosts spending on the military and veterans' care, and caps it for many discretionary domestic programs, according to sources familiar with the talks.
"There's a ton of partisanship and it makes it very difficult and very acerbic in Washington," said Binder. "But I think this is when all said and done, when you close the doors and get the principals in the room, there is still some capacity for the parties to reach decisions. Granted, again, with that Sword of Damocles hanging over their head because it really both sides agreed it wasn't acceptable for the government to have a default."
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