Democrats and Republicans reach an agreement in principle to raise the debt ceiling

The White House and Republicans have a “principle of agreement” for egraise the debt ceiling and prevent the United States from defaultingas confirmed by the president Joe Bidenand the Leader of the House of Representatives Kevin McCarthy.

In a brief appearance to the press, McCarthy assured that the deal was a “historic reduction in government spending” and reforms that “getting people out of poverty and into work“We have reached an agreement in principle worthy of the American people,” he stressed.

For his part, President Biden has explained that this principle of agreement contains concessions from the Democrats, but maintains the “main prioritiesfrom his administration. “It is a major step forward that reduces spending while protecting critical programs for workers and growing the economy for all,” he added.

Now the negotiating teams of both sides have the task of finalizing the legal textwhat will be voted in both the House of Representatives (Republican controlled) like in the senate (controlled by the Democrats) on Wednesday the 31st.

The debt limit is the total amount of money that the United States government is allowed to borrow for comply with your existing legal obligations and be able to pay Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments.

From time to time, the United States is faced with defaulting on its national debt because, unlike other countries, the government can only issue debt up to limit set by Congresswho has the power to raise that ceiling as he sees fit.

On January 19, the country reached its Statutory debt limit of $31.4 trillion, prompting the Treasury Department to resort to extraordinary measures to pay the bills ever since. In this way, a period of strong confrontation between Democrats and Republicans, who have been trying in vain for months to approach positions on this issue, will come to an end.