Washington- The United States is approaching its debt limit, meaning a solution to avoid the U. S. potentially defaulting, needs to be found. A deal was possibly found, the House of Reps. has now passed it, the senate all passing it.

Currently the debt limit is set at $31.4 trillion, which is the maximum amount of money that the federal government is allowed to borrow. The limit is almost reached, and if it does so the U. S. would be lead to a default.

Janet Yellen, Treasury Secretary warns the debt limit is expected to be reached as early as July 5, as the Treasury Department has been using accounting measures to avoid default. Leaving lawmakers scrambling to fix this issue.

After that, the talks continued with negotiaters, now a deal finally made with President Biden and Speaker Kevin McCarthy, over the phone, as Biden is in Delaware for Memorial Day weekend.

McCarthy release a 99-page bill that the House of Reps. have voted to pass, and the Senate.

The 99-page bill contains:

  • Suspension of the U. S. debt limit until 2025
  • Keep nondefense spending roughly flat in the 2024 fiscal year and increase it by 1% the following year
  • Requiring Congress to approve 12 annual spending bills or face a snapback to spending limits from the previous year
  • Fully fund medical care for veterans at the levels included in Biden’s proposed 2024 budget blueprint
  • Rescinding about $30 billion in unspent coronavirus relief money that Congress approved through previous bills
  • Rescinding $1.4 billion from the IRS
  • Resignate “a single lead agency” to develop and schedule environmental reviews, in hopes of streamlining the process
  • Rescinding the White House’s plan to waive $10,000 to $20,000 in debt for nearly all borrowers failed to make it into the package

But what didn’t make it in to the bill?

  • Legislation passed last month that would have created new work requirements for some Medicaid recipients, but that was left out of the final agreement, leaving some republicans skeptical
  • Clean energy tax credits Democrats passed in party-line votes last year to boost the production and consumption of clean energy.

In the end it seems some simple ground was found

The debt ceiling bill also has a whole on Wall Street, meaning if this doesn’t pass we could see tons of economic effects.

Latest video update: