Biden Administration and Congress Reach Deal on Debt Limit, Vote Pending
May 28, 2023
Last night, President Biden and Speaker of the House Kevin McCarthy (R-CA) agreed on a deal in principle to raise the federal debit ceiling and fund the government through 2025. The deal will be voted on next week in Congress before being finalized. Details are still being revealed, but here is what we know at this time:
- Domestic spending outside of the military and Veterans Affairs (VA) will remain at the same levels until 2025, when spending will then increase by one percent.
- Military and VA spending will be increase over the next two years in line with President Biden’s budget request.
- Social Security and Medicare will be protected from budget cuts.
“While I am pleased that Speaker McCarthy has agreed to a deal with President Biden to avoid a catastrophic default, a freeze in spending for federal agencies will lead to serious issues or make matters worse than they already are,” said NFFE National President Randy Erwin. “Accounting for inflation, this deal ultimately means federal agencies will see their funding cut over the next two years. Republicans in Congress who are pushing for these cuts need to understand that this deal will only exacerbate issues with operations and staffing, and the American public will suffer the consequences, as will federal employees. If this deal is approved, Congress must pass supplemental legislation to fully fund federal agencies.”