Details of the agreement to raise the US debt ceiling

However, Congress will still scrutinize the bill, which also includes provisions for funding health care for veterans, changing work requirements for some government aid recipients and streamlining environmental reviews for energy projects.

Details of the American Gas Pipe Agreement Figure 1 — US President Joe Biden. Photo: CBC

Mr. McCarthy said the House would vote on the legislation on Wednesday, giving the Senate enough time to consider and vote before June 5, the date Treasury Secretary Janet Yellen said the U.S. government could default on its debt obligations.

Some hard-line Republicans say the deal does not cut enough to limit future deficits, while Democrats are worried about changes proposed by Republicans.

Here are some things to note in the new US debt ceiling deal that has been put forward:

Suspend debt limits and spending restrictions for 2 years

The deal would keep US non-defense spending largely unchanged in fiscal year 2024 and increase 1% next year, and would not cap the debt ceiling until January 2025, after the next presidential election in November 2024.

For the next fiscal year, the bill matches Mr. Biden’s proposed defense budget of $886 billion. However, it limits federal budget growth to 1% for the next six years, but that provision would not take effect starting in 2025.

Overall, the White House estimates the plan would reduce Biden administration spending by at least $1 trillion, but official calculations have not yet been released.

Medical care for veterans

The deal would fully fund veterans’ health care as detailed in Mr. Biden’s proposed 2024 budget, including a dedicated fund for veterans exposed to toxic substances or environmental hazards. The fund is expected to cost $20.3 billion.

Recover unused translation support funds

The deal would cancel about $30 billion in unspent COVID-19 relief money previously passed by Congress , including rental assistance, small business loans and rural infrastructure.

Funding for veterans' health care and about $5 billion for the development of next-generation vaccines and COVID-19 treatments would not be revoked.

Energy projects

The agreement would make changes to the National Environmental Policy Act. For the first time in nearly four decades, there would be a “single lead agency” designated to conduct periodic environmental reviews. It would also simplify some requirements for environmental reviews.

Agencies will have one year to complete environmental assessments and projects deemed to have complex environmental impacts will need to be reviewed within two years.

The Mountain Valley Pipeline, a natural gas pipeline in West Virginia, will also be granted special approval for all outstanding permit requests.

Student loans

Republicans have long sought to thwart the Biden administration’s efforts to provide student loan relief and aid to millions of people during the COVID-19 pandemic. Biden agreed to end student loan forbearance at the end of August.

What not to add

The administration’s proposal to eliminate many clean energy tax credits was not included in the deal. Mr. McCarthy and Republicans have argued that the tax cuts “would have an impact on the market and waste taxpayer money.”

Recently, hundreds of billions of dollars in tax credits have been invested in the private sector, creating thousands of manufacturing jobs in America.

Quoc Thien (according to AP)

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