Debt ceiling deal: what’s in, what’s out

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However, some Conservatives are already raising concerns that the compromise will not sufficiently reduce future deficits. And Democrats have been concerned about proposed changes to work requirements in programs like food stamps.

Biden announced Sunday night that he and McCarthy had reached a final agreement on the legislation and that they would lobby for Congress to pass it. McCarthy, R-California, said the House of Representatives will vote on the legislation on Wednesday, giving the Senate time to consider it before June 5, the date when Treasury Secretary Janet Yellen said the United States could no longer meet its payment obligations if the legislature did not act in time.

A look at the content and implications of the deal based on what is known so far:

TWO-YEAR DEBT INCREASE, SPEND REST

The deal would keep non-defense spending roughly stable in fiscal 2024, increase it by 1% the following year, and provide for a two-year debt ceiling hike beyond the next presidential election in 2024. That’s according to a source familiar with the deal, who gave details on the condition of anonymity.

VETERANS CARE

The agreement would fully fund veterans’ medical care at the rate provided for in Biden’s proposed 2024 budget, including a fund for veterans who have been exposed to toxic substances or environmental hazards. Biden requested $20.3 billion for the poison exposure fund in his budget, and Republican negotiators Sunday ensured funding remained untouched.

WORK REQUIREMENTS

Republicans had proposed increasing work requirements for able-bodied adults without dependents in certain federal assistance programs. They said it would bring more people into the workforce, who would then pay taxes and help support key entitlement programs, namely Social Security and Medicare.

The agreement would expand some work requirements for the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps. It would raise the age for existing work requirements from 49 to 54, similar to the Republican proposal, but those changes would expire in 2030. The White House said it would simultaneously reduce the number of vulnerable people — including veterans and people who are homeless — of any age to which the requirements apply.

Many of these changes will expire in 2030, allowing Congress to measure the effectiveness of these changes and make changes as needed.

UNSPENTED COVID MONEY

The agreement would withdraw about $30 billion in unspent coronavirus relief funds that Congress approved through previous bills, with exceptions for veterans’ medical care, housing benefits, the Indian Health Service and about $5 billion for a program focused on the rapid development of next-generation COVID-19 vaccines and treatments.

Accelerate energy projects

The deal leads to changes in the National Environmental Policy Act For the first time in nearly four decades, “a single lead agency” would be tasked with developing environmental assessments in hopes of streamlining the process.

STUDENT LOANS

Republicans have long sought to roll back efforts by the Biden administration to provide student loan ease and aid to millions of borrowers during the coronavirus pandemic. While Republicans’ proposal to repeal the White House plan to forgive $10,000-$20,000 in debt for nearly all borrowers was not included in the package, Biden agreed to the pause in student loan repayments end.

Once Biden signs the package, the pause in student loan repayments would end within 60 days.

Meanwhile, the fate of student loan relief is being decided by the Supreme Court, dominated 6-3 by its conservative wing. During the hearing in the case, several judges expressed deep skepticism about the legality of Biden’s plan. A decision is expected before the end of June.

WHAT IS OMITTED

House Republicans passed legislation last month that would have created new work requirements for some Medicaid recipients, but that was left out of the final agreement. The idea met with strong opposition from the White House and Congressional Democrats, who said it would result in fewer people being able to afford food or health care without actually increasing the labor force.

Also absent from the final agreement is the GOP’s proposal to repeal many of the clean energy tax credits that Democrats passed in party votes last year to boost clean energy production and consumption. McCarthy and the Republicans argued that the tax break “distorted the market and wasted taxpayers’ money.”

The White House has defended that the tax credits resulted in hundreds of billions of dollars in private sector investment and created thousands of US manufacturing jobs