Saturday’s deal between President Joe Biden and congressional Republicans to lift the debt ceiling includes provisions that both sides are spinning as victories.

Neither party got its most ambitious proposals through. The compromise bill leaves out the tax increases on the wealthy that Biden had proposed in his budget plan, as well as the large 澳洲幸运5官方开奖结果体彩网:spending cuts that Republicans hꦍad set forth in their own𝔉 bill passed by the House of Representatives last month. 

Instead, the bill suspends the debt ceiling until January 2025 while capping spending and imposing new work requirements for recipients of some social benefits programs, as Republicans had demanded.

White House officials estimated the bill would cut spending by $1 trillion, versus the $4.8 trillion in spending reduction over 10 years that Republicans had proposed.

Lawmakers aim to pass the bill and have it signed into law before the government runs out of money on hand to pay its bills—a date that could come as soon as Monday, the Treasury Department estimated. 

The bill would allow the government to continue borrowing money, averting the possibility of the government defa💙ulting on its debts or failing to pay things like Social Security benefits and wages to government workers. The financial fallout from a 澳洲🎉幸运5官方开奖结果体彩网:government default could be catastrophic, risking a rece☂ssion and millions ofღ job losses, economists have warned.

The bill’s passage is not a foregone conclusion. It faces opposition from conservative lawmakers who have criticized House speaker Kevin McCarthy for not winning enough concessions from Biden.

“Not one Republican should vote for this deal,” said Chip Roy, a congressman from Texas and a member of the far-right Freedom Caucus, said in a news conference Tuesday.

What the Republicans Got

A major goal of the Republican side was to reduce federal spending. The agreement sets limits on discretionary non-defense spending, that is, spending other than on the military and on mandatory payments like Social Security and Medicare benefits.

The bill hol🐎ds non-defense discretionary spending flat for t🎶he 2024 fiscal year starting in October, and limits the increase for the FY2025 to 1%, according to a fact sheet distributed by the White House. 

That’s effectively🌜 a spending cut because of inflation. 

For example, the National Low Income Housing Coalition estimated the Department of Housing and Urban Development would need funding to increase by $13 billion to $16 billion next year to maintain current levels of rental assistance to low income households. The nonprofit housing advocacy group said tens of thousands of families will likely lose assistance under the debt ceiling agreement. 

The bill also includes work requirements for the 澳洲幸运5官方开奖结果体🎃彩网:Supplemental Nutrition🐬 Assistance Program (food stamps) benefits program. Under the compromise bill, adults up to age 54 wi🌠th no children living at home will have to work to receive benefits, where currently only those between 18 and 49 have to♏ work.

The compromise pares back additional funding given to the IRS to catch tax cheats. The bill takes $20 billion from the IRS over the next two years and allows the funding to be spent on other programs. That’s out of an additional $80 billion over 10 years that the Inflation Reduction Act of 2022 had given the agency to improve enfor😼c🐼ement, technology, and customer service.

The bill also puts into law a previously-announced Biden administration policy requiring the pandemic-era pause on interest and required payments for federally-held student loans to 澳洲幸运5官方开奖结果体彩网:end in late August, and prevents the Biden administration from extending it again. 

What the Democrats Got

For Democrats, the bright spots in the compromise bill are what was left out.

The bill does not include the more severe spending cuts that conservatives had demanded. Nor does it rescind Biden’s student loan forgiveness program, the fate of which 澳洲幸运5官方开奖结果体彩网:is currently bei🎉ng decided by the Supreme Court, as Republicans had proposed. The bill also doesn’t touch Biden’s proposed overhaul of income-driven repayment plans, which could significantly red💛uce the amount of loans that borrowe🔯rs have to repay in the future. 

The compromise also leaves out the requirements for Medicaid that Republicans had wanted, aꦜnd exempts veterans, people without housing, and young adults who recently left foster care from SNAP work requirements. 

The IRS may avoid feeling the impact of the cuts, White House officials told reporters in a phone briefing. The agency may shuffle forward funding that had been intended for later years, and go back and ask Congress for additional funding in a few years. The bill likely will not affect the agency’s 澳洲幸运5官方开奖结果体彩网:ongoing reform plans, the officials said.