The latest on the US debt ceiling deal: live updates

8:32 a.m. ET, May 28, 2023

What we know about the debt ceiling deal

From CNN’s Tami Luhby

President Joe Biden and House Republicans have An agreement in principle was reached After weeks of tense negotiations to raise the debt ceiling and limit spending.

Now, congressional leaders in both parties have to Convince their members adequately To vote on a deal that contains provisions that lawmakers on each side of the aisle don’t support.

Here’s what we know about the deal, based on a fact sheet circulated by House Republicans and a source familiar with the negotiations.

Raising the credit limit: The agreement extends the credit limit for two years.

Controls Unsafe Expenditure: Under the deal, unsecured spending would remain relatively flat in fiscal year 2024 and increase by 1% in fiscal year 2025, after some unspecified changes in funding allocations, according to the source.

After fiscal year 2025, the funding targets will remain in place but will not be implemented, the source said.

The House GOP fact sheet says that unprotected discretionary spending would be restored to fiscal 2022 levels and that overhead federal spending would be limited to 1% annual growth for the next six years.

Expanding Job Requirements: The agreement calls for temporarily expanding work requirements for certain adults receiving food stamps.

Currently, childless, able-bodied adults between the ages of 18 and 49 can only receive food stamps for three months every three years unless they work at least 20 hours per week or meet other criteria. According to the source, the contract will raise the age to 54. The GOP fact sheet says it applies to people up to age 55.

Resume Student Loan Repayment: According to the House GOP fact sheet, borrowers must repay their student loans, although it does not specify when repayment will begin. They have been suspended since the start of the Covid-19 pandemic.

Read more about the deal Here.

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