The White House and Republicans reached a deal over the holiday weekend that will avoid the nation’s first breach of its debt limit and leave untouched leftover pandemic aid allocated to cities and states. A House vote on the Fiscal Responsibility Act of 2023 is set for Wednesday to move the bill ahead of a U.S. default as soon as June 5. The House Rules Committee is set to take up the legislation Tuesday afternoon. “The agreement prevents the worst possible crisis: a default for the first time in our nation’s history,” President Joe Biden said Sunday night at a White House press conference. It “takes the threat of a catastrophic default off the table.” The 99-page bill would cap discretionary spending for six years — but with a sequester mechanism in place only for the first two years — as well as rescind enforcement funding for the Internal Revenue Service and streamline energy infrastructure project permitting.
Source: The Bond Buyer
