The US debt ceiling agreement is facing its first test in Congress today

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Tuesday, May 30, 2023 - 15:48
Point Trader Group

A bipartisan agreement on the $31.4 trillion government debt ceiling faces its first test in Congress on Tuesday, kicking off a crucial week in which the deal is voted on before the country defaults on its obligations.

The 99-page bill is scheduled to be considered by the House Rules Committee at 3 p.m. local time before the Republican-controlled House and Democratic-controlled Senate vote on it.       

Both Democratic President Joe Biden and the top Republican in Congress, House Speaker Kevin McCarthy, expect the bill to get enough votes to become law before Monday, the day the Treasury Department says it will not have enough money to cover its obligations.

The bill would suspend the US debt ceiling until January 1, 2025, allowing Biden and lawmakers to postpone this politically risky issue until after the November 2024 presidential election.

It also caps some government spending over the next two years, speeds up the approval process for some energy projects, returns unused COVID-19 funds, and sets work conditions for some poor Americans to benefit from food aid programs.


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