Here’s what’s in the deal to raise the debt ceiling

Raises debt ceiling two years

The deal raises the debt limit for two years rather than by a monetary amount, meaning the issue wouldn’t come up again until after the next presidential election.

Spending caps

But a source familiar with the agreement said there are no budget caps in place after 2025, only “non-enforceable appropriations targets.” And the source said non-defense spending would stay roughly flat when factoring in other agreed appropriations adjustments. 

That same source said defense spending would be consistent with what Biden requested in his 2024 budget proposal, which was nearly $900 billion.The deal fully funds medical care for veterans, including funding the Toxic Exposure Fund through the bipartisan PACT Act.

Work requirements

The agreement phases in an increase for the age until which recipients of food stamps must seek work to be eligible for the benefits, from 49 to 54, but it also includes reforms to reduce the number of vulnerable people, including veterans and people who are homeless, subject to the limits under the SNAP program.

A source familiar with the agreement said changes included in the original House GOP bill to raise the debt limit are not in the final deal, which would have put more than 1 million potential beneficiaries at risk.The agreement does not include any changes to work requirements for Medicaid recipients, which Republicans had proposed but that the White House pushed back hard on.

COVID-19 funds clawback

Biden had indicated in recent weeks that he would open to putting unused COVID-19 relief funds on the table as part of spending talks.

IRS funds

The deal would cut some IRS funding without nixing the full $80 billion funding boost over a decade that Democrats approved last year 


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