Biden signs agreement to raise the debt ceiling in the US

Rate this post

The President of the United States, Joe Biden, signed the agreement on Saturday achieved between the White House and the Republicans to raise the debt ceiling until 2025, thus preventing the country from going into suspension of payments.

“We are going to continue the work of build the strongest economy in the world“, the president wrote in a tweet, accompanied by a video of him signing the agreement in the Oval Office.

With Biden's ratification, the country will avoid the default that would have occurred as soon as Monday had Congress not reached an agreement to raise the debt ceiling, which sets the limit on how much money the US can borrow and can only be raised or stopped by legislative action.

In an address to the nation this Friday night, Biden noted that suspension of payments "would have been catastrophic" and sent the country into "a recession."

The agreement to raise the debt ceiling in exchange for some caps on public spending was reached last weekend, in a negotiation against the clock Between the White House and House Republicansled by Kevin McCarthy.

The measure suspends the debt ceiling for the next two years, until after the presidential elections of November 2024. Specifically, suspends the current debt limit of $31.4 trillion until January 1, 2025.

They will reduce part of the new funds destined to public finances

In exchange, the agreement reached over the weekend between the White House and the Republicans in the Lower House contemplates, among other things, caps on spending on congressionally funded programs in areas like healthcareeducation, justice or environmental protection.

In parallel, cuts part of the new funds destined to the public Treasury to reassign them to items that are not defense and contemplates the resumption of payments by university students of the debt they have accumulated.

Under that agreement, non-defense spending will remain the same in fiscal year 2024 and will increase 1% in fiscal year 2025.

In addition, tightens the work requirements to access social benefitssuch as food stamps, and rescinds $28 billion of unspent dollars that had been earmarked for pandemic relief programs.

The approval of the agreement in Congress and the subsequent signature of the president it was crucial for the country not to default on its public debtafter the debt ceiling was reached last January, the legal limit to the money that the US can borrow to meet its commitments.

Author Profile

Nathan Rivera
Allow me to introduce myself. I am Nathan Rivera, a dedicated journalist who has had the privilege of writing for the online newspaper Today90. My journey in the world of journalism has been a testament to the power of dedication, integrity, and passion.

My story began with a relentless thirst for knowledge and an innate curiosity about the events shaping our world. I graduated with honors in Investigative Journalism from a renowned university, laying the foundation for what would become a fulfilling career in the field.

What sets me apart is my unwavering commitment to uncovering the truth. I refuse to settle for superficial answers or preconceived narratives. Instead, I constantly challenge the status quo, delving deep into complex issues to reveal the reality beneath the surface. My dedication to investigative journalism has uncovered numerous scandals and shed light on issues others might prefer to ignore.

I am also a staunch advocate for press freedom. I have tirelessly fought to protect the rights of journalists and have faced significant challenges in my quest to inform the public truthfully and without constraints. My courage in defending these principles serves as an example to all who believe in the power of journalism to change the world.

Throughout my career, I have been honored with numerous awards and recognitions for my outstanding work in journalism. My investigations have changed policies, exposed corruption, and given a voice to those who had none. My commitment to truth and justice makes me a beacon of hope in a world where misinformation often prevails.

At Today90, I continue to be a driving force behind journalistic excellence. My tireless dedication to fair and accurate reporting is an invaluable asset to the editorial team. My biography is a living testament to the importance of journalism in our society and a reminder that a dedicated journalist can make a difference in the world.