US President Joe Biden and House Speaker Kevin McCarthy reached, at dawn on Sunday, a preliminary agreement to end the US debt ceiling crisis, which has been going on for more than two months.
McCarthy wrote on Twitter that he had received a phone call from President Biden, during which he reached a preliminary agreement to solve the debt ceiling crisis.
He said, “I ended contact with the president a little while ago… After he wasted time and refused to negotiate for months, we reached an agreement in principle that the American people deserve”.
On January 19, the United States exceeded the debt ceiling set by $ 31.4 trillion, while it’s prohibited to exceed it without approval from the Republican-controlled House of Representatives.
The debt ceiling, also called the debt limit, is the maximum total amount of money the federal government allowed to borrow through the US Treasury, such as bonds and savings bonds.
For his part, President Biden said in a statement that the agreement with the House of Representatives represents a consensus, which means that not everyone will get what they want, and this is the responsibility of the government.
Among the most prominent provisions of the initial agreement is raising the debt ceiling for the next two years, without officially announcing the new ceiling number, and reducing spending during the same period.
The agreement also includes the recovery of unused funds that intended to combat the Corona virus, and the acceleration of the process of granting approvals for some energy projects.
