Biden, Republicans reach debt limit deal in principle

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Biden, Republicans reach debt limit deal in principle

A tentative agreement in principle was reached on Saturday night between Democrats and Republicans to raise the nation's debt ceiling, averting a potential U.S. default.

President Joe Biden and House Speaker Kevin McCarthy reached the agreement on the phone on Saturday evening.

This had angered House Democrats, who had made concessions with negotiators agreeing to some Republican demands for increased work requirements for recipients of food stamps.

Support from both sides will be needed to win congressional approval next week before a June 5 deadline.

A source familiar with the negotiations tells FOX News that it is a two-year budget deal and two-year debt limit increase.

It holds spending flat for 2024, and limits for 2025 are set for 2025.

Non-defense spending will be roughly flat as compared with current FY 2023 levels in 2024, when factoring in agreed-upon appropriations adjustments.

Changes to SNAP that decreases work requirements for veterans, people who are homeless, others, while increasing age for work requirements from 49 to 54.

Earlier this evening, Biden said, Speaker McCarthy and I reached a budget agreement in principle. And, he added, the agreement protects my and Congressional Democrats key priorities and legislative accomplishments.

The agreement is a contract, which means that not everyone gets what they want. That's the responsibility of governing, he said.

We still have a lot of work to do. I believe this is an agreement in principle that's worthy of the American people. It has historic reductions in expenditure, consequential reforms that will lift people out of poverty into the workforce, he said, including government overreach. There's a lot more within the bill, he said.

With the outlines of a deal in place, the deal can be drafted and shared with lawmakers in time for votes early next week in the House and later in the Senate.

The deal came together after the Secretary of State Janet Yellen told Congress that the United States could default on its debt by June 5 - four days later than previously expected.