Bill may come soon to increase debt limit in America
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The danger of angering both Democrats and Republicans
However, the concessions or conditions that have been set to reach this agreement run the risk of angering both the country’s major parties – Democrats and Republicans. Negotiators have agreed on Republicans’ growing need for work for food stamp recipients, which Democrats have raised an uproar. McCarthy said Saturday night that the agreement was reached after a phone conversation between the Democratic president and the Republican speaker on Saturday evening. At the same time, Biden said in a statement on Saturday night, a ‘compromise’ had to be done to reach this agreement. This means that not everyone will get what they want. Describing the agreement as good news for the people of America, Biden said that it could save the country from a lapse that could have taken it into an economic recession. Also, retirement accounts would have been affected and millions of people would have lost their jobs if there was no agreement.
what’s inside the deal
Non-defense spending will not be increased in FY 2024. Next year also it will be increased by 1% only. Also, after the 2024 presidential election, the debt limit should be increased for two years.
In Biden’s budget proposal for 2024, full funding will be given for the medical care that has been said to be given to the elderly. It also offers medical care in case of exposure to toxic substances or environmental hazards. Biden has proposed $ 20.3 billion for.
It has been agreed to change the criteria related to the job for some time.
– It has been agreed to change the National Environmental Policy Act. Under this act, it has been said to form an agency to conduct environmental review.
– Biden wanted to waive the loan of all the student loan borrowers ranging from $10,000 to $20,000, on which both sides have not discussed.
What is credit limit dispute
The US government legally borrows money to meet its expenses and obligations. The Parliament of America has made a law and fixed the limit for taking this loan, which is called Debt Ceiling. According to the US Constitution, Congress (Parliament) has been given the right to control government spending. Without the approval of the Congress, the government cannot borrow more than the fixed debt limit. The opposition Republican Party has a majority in the US House of Representatives. Republican lawmakers were not in favor of raising the debt ceiling, causing controversy. If there was no agreement on the debt limit soon, then America’s coffers could be empty, due to which America was in danger of bankruptcy. This would have affected not only America but the entire global economy.
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