The White House and Republicans have reached an agreement in principle to raise the debt ceiling and avert a default, according to multiple reports.
Several news outlets are reporting that President Joe Biden and House Speaker Kevin McCarthy have reached a tentative deal to raise the nation's debt ceiling, narrowly avoiding the first default in United States history. Following a months-long standoff, the two sides reportedly struck a deal to raise the nation's $31.4 trillion debt ceiling.
"But, I’m not sure it’s completely settled. Might be one or two small things they need to finish. But close enough to move forward," a source familiar with the negotiations told Reuters.
McCarthy wrote on Twitter, "I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people."
McCarthy added, "It has historic reductions in spending, consequential reforms that will lift people out of poverty and into the workforce, and rein in government overreach. There are no new taxes and no new government programs."
McCarthy said he expected the bill to be finished by tomorrow afternoon, when it will be released to the public. He said the bill should be ready for a vote on Wednesday.
CNN reported, "The text of the deal will be reviewed overnight by both sides to ensure it lines up with the tentative agreement."
CBS News reported that non-defense spending would increase by 1% in the 2025 fiscal year, citing a source.
The agreement will "raise the debt limit for two years while cutting and capping some government spending over the same period," the New York Times reported, citing three sources familiar with the deal.
The Times said of the compromise between the White House and Republicans, "It was structured with the aim of enticing votes from both parties, though it would most likely draw the ire not only of conservative Republicans but also Democrats furious at being asked to vote for cuts they oppose with the threat of default looming."
Treasury Secretary Janet Yellen previously warned that a deal must be finalized by June 5 to avoid a default.
This story is breaking news and will be updated with any updated developments.
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