December 22, 2024
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Deal approved, Biden will address budget, debt agreement from Oval Office Friday evening

President Joe Biden will address the nation Friday evening from the Oval Office on the budget deal that lifts the federal debt limit and averts a U.S. government default

By CHRIS MEGERIAN - The Associated Press
FILE - President Joe Biden talks with House Speaker Kevin McCarthy of Calif., on the House steps as they leave after attending an annual St. Patrick's Day luncheon gathering at the Capitol in Washington, Friday, March 17, 2023. Facing the risk of a government default as soon as June 1, President Joe Biden has invited the top four congressional leaders to a White House meeting for talks on Tuesday, May 9.

Joe Biden, Kevin McCarty FILE - President Joe Biden talks with House Speaker Kevin McCarthy of Calif., on the House steps as they leave after attending an annual St. Patrick's Day luncheon gathering at the Capitol in Washington, Friday, March 17, 2023. Facing the risk of a government default as soon as June 1, President Joe Biden has invited the top four congressional leaders to a White House meeting for talks on Tuesday, May 9. (AP Photo/Alex Brandon, File/AP)

WASHINGTON — (AP) — President Joe Biden planned to discuss the contentious, just-passed budget deal in a speech to the nation Friday night, ready to sign the agreement averting the country’s first-ever government default, which would have sent shock waves through the U.S. and global economies.

The measure was approved late Thursday night after passing the House in yet another late session the night before. Biden was expected to sign it at the White House on Saturday

After days of default threats, the debt limit-budget agreement was worked out by Biden and House Speaker Kevin McCarthy, giving Republicans some of their spending-cut demands but holding the line on major Democratic priorities.

“No one gets everything they want in a negotiation, but make no mistake: This bipartisan agreement is a big win for our economy and the American people,” Biden said in a statement on Thursday.

Biden's speech on Friday, scheduled for 7 p.m. EDT, will be the most extended remarks from the Democratic president on the compromise. He largely remained quiet publicly during negotiations, a decision that frustrated some members of his party but was intended to give space for both sides to reach a deal.

Fast action was vital if Washington hoped to meet next Monday’s deadline, when Treasury has said the U.S. will start running short of cash to pay its bills.

The deal suspends the nation's debt limit until 2025, after the next presidential election, and ensures that the government can continue borrowing to pay already incurred U.S. debts.

Overall, the 99-page bill restricts spending for the next two years and changes some policies, including imposing new work requirements for older Americans receiving food aid and greenlighting an Appalachian natural gas line that many Democrats oppose. Some environmental rules were modified to help streamline approvals for infrastructure projects.

The legislation also bolsters funds for defense and veterans, cuts back new money for Internal Revenue Service agents and rejects Biden’s call to roll back Trump-era tax breaks on corporations and the wealthy to help cover the nation’s deficits. It imposes automatic overall 1% cuts if Congress fails approve its annual spending bills. The tally was 46 Democrats AND INDEPENDENTS and 17 Republicans in favor; 31 Republicans along with four Democrats and one independent who caucuses with the Democrats opposed.

The vote in the House was 314-117. In the Senate it was 63-36, including 46 Democrats and independents and 17 Republicans in favor, 31 Republicans along with four Democrats and one independent who caucuses with the Democrats opposed.

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AP White House Correspondent Zeke Miller and AP Congressional Correspondent Lisa Mascaro contributed to this report.

Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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