Wot You Need fo’ Know ‘Bout Da New Debt Limit Deal! 📜💰💔
Dem new details about da debt limit deal goin’ make some waves in Congress dis week. Speaker Kevin McCarthy wen strike one agreement wit President Biden, an’ now we get da full scoop on wot dis deal involve. House lawmakers goin’ cast dey votes, an’ we breakin’ it all down fo’ you!
Suspension of Da Debt Limit 📉
Da main piece of dis agreement stay da suspension of da debt ceiling. Dis stay da total amount of money da government can borrow. Right now, da limit stay at $31.4 trillion, an’ if dis agreement pass before June 5, da United States can keep borrowin’ money an’ payin’ bills on time. It stay one temporary suspension dat goin’ last until Jan. 2025. But if da agreement no pass, Treasury wen say we goin’ run outta cash. So, time stay runnin’ out!
Limits on Federal Spending 💸
Republicans wen put dey demands on da table. Dey wanted to make sure federal discretionary spending no grow too much in da next two years. Dis includes domestic law enforcement, scientific research, forest management, an’ mo’. So, dis agreement goin’ limit da growth of discretionary spending to just 1 percent in 2025. But some details stay fuzzy. Legislative text an’ White House officials tell different stories ’bout how big da cuts really goin’ be. So, we no get da full picture yet.
Cuts to I.R.S. Funding 💔💰
One big focus for President Biden stay beefin’ up da Internal Revenue Service (I.R.S.). He want dem fo’ go aftah tax cheats an’ make sure da rich an’ companies pay dey fair share. But Republicans no too happy ’bout dis idea. So, dis deal goin’ claw back $1.38 billion from da I.R.S. immediately, an’ eventually take anotha $20 billion from da $80 billion dat was earmarked fo’ da I.R.S. before. Dis one political win fo’ da Republicans, who even wen tryin’ to rescind da whole $80 billion. Dis cutback goin’ affect da I.R.S.’s efforts to catch dem tax cheats, but da agency still got some leeway on how dey spend da money.
New Work Requirements 🛠️💪
Dis deal goin’ impose new work requirements on some folks who get government benefits. For example, folks ages 50 to 54 without kids livin’ wit ’em goin’ face new work requirements fo’ food stamps. Right now, da requirements only apply to folks age 18 to 49. Dis age limit goin’ phase in ovah three years, startin’ in fiscal year 2023. Da bill also got a technical change fo’ da Temporary Assistance for Needy Families Program. But don’t worry, veterans, homeless folks, an’ former foster kids get exemptions from da new work requirements.
Permitting Reform an’ Surprises 🚧😮
Dis agreement also got some surprises in store. Dey tryin’ to speed up da approval process fo’ energy projects. Da deal goin’ create one lead agency to oversee da reviews an’ require dat dey get completed in one to two years. But here da big surprise: dey even includin’ one fast track fo’ construction of one new natural gas pipeline from West Virginia to Virginia. Dis been a big deal fo’ Republican lawmakers an’ one centrist Democrat. Environmentalists an’ civil rights activists been against dis project, but da bill say dis pipeline stay “required in da national interest.”
Student Loans an’ Unspent Covid Money 🎓🦠
Da bill goin’ end President Biden’s freeze on student loan repayments by August. But da House Republicans wanted to put one halt on Biden’s student loan forgiveness program, which he rolled out last year. Dat program still under review by da Supreme Court, so da bill no take action on it. Da bill also claw back ’bout $30 billion in unspent Covid relief money from an earlier bill signed by Biden. Some of dat money goin’ be repurposed fo’ boostin’ nondefense discretionary spendin’. But don’t worry, important Covid programs like Project NextGen an’ free coronavirus shots fo’ da uninsured still get fundin’.
Avoidin’ a Government Shutdown 🛑
Dis agreement set da stage fo’ da next two years of spendin’, but Congress gotta fill in da details wit passin’ more spendin’ bills. If dey no agree on da plans in time, da government might shut down. Da agreement tryin’ to avoid dat by threatenin’ to reduce spendin’ dat important to both parties. So, if lawmakers no pass all 12 regular fundin’ bills by end of da year, da agreement tighten da spendin’ caps. Dis mean nondefense discretionary spendin’ goin’ be set 1 percent below current year levels. An’ dat could mean significant cuts to defense an’ veterans’ spendin’ compared to da caps dat was agreed upon. Democrats think dis goin’ push Republicans to work things out an’ pass da appropriations bills on time.
Wot Ain’t In Da Bill ❌
Dis final agreement got less debt reduction dan both sides wanted. Republicans wanted more cuts an’ stricter work requirements, while Biden wanted to raise taxes on corporations an’ high earners an’ reduce Medicare’s spendin’ on prescription drugs. None of dat made it into dis deal.
Da full legislative text laid it all out, an’ now da House goin’ vote. Dis deal got its ups an’ downs, but it’s da compromise dat could shape da nation’s spendin’ fo’ da next couple of years.
NOW IN ENGLISH
💰💔 What You Need to Know About the New Debt Limit Deal! 📜
New details about the debt limit deal are causing a stir in Congress this week. Speaker Kevin McCarthy has reached an agreement with President Biden, and we now have the full scoop on what this deal entails. House lawmakers are gearing up to cast their votes, and we’re here to break it all down for you!
Suspension of the Debt Limit 📉
The key element of this agreement is the suspension of the debt ceiling. This represents the total amount of money that the government is allowed to borrow. Currently, the limit is set at $31.4 trillion, and if this agreement is passed before June 5, the United States can continue borrowing money and paying its bills on time. This temporary suspension will last until January 2025. However, if the agreement fails to pass, the Treasury has warned that we will run out of cash. Time is running out!
Limits on Federal Spending 💸
Republicans have put forth their demands, aiming to ensure that federal discretionary spending doesn’t grow too much over the next two years. This includes areas such as domestic law enforcement, scientific research, forest management, and more. The agreement will limit the growth of discretionary spending to just 1 percent in 2025. However, some details remain unclear as the legislative text and White House officials provide differing accounts of the extent of the cuts. So, we don’t yet have the full picture.
Cuts to I.R.S. Funding 💔💰
President Biden has made it a priority to strengthen the Internal Revenue Service (I.R.S.) to crack down on tax evaders and ensure that the wealthy and corporations pay their fair share. However, Republicans have voiced their opposition to this idea. As part of the deal, $1.38 billion will be clawed back from the I.R.S. immediately, and an additional $20 billion will be repurposed from the $80 billion it received previously. This is a political win for Republicans who had even sought to rescind the entire $80 billion. These cutbacks will impact the I.R.S.’s efforts to combat tax evasion, but the agency still has some flexibility in how it allocates its funding.
New Work Requirements 🛠️💪
The deal will introduce new work requirements for certain individuals receiving government benefits. For example, individuals aged 50 to 54 without dependent children will now face work requirements for food stamps. Currently, these requirements only apply to individuals aged 18 to 49. The age limit will be phased in over three years, starting in fiscal year 2023. The bill also includes a technical change for the Temporary Assistance for Needy Families Program. However, veterans, homeless individuals, and former foster children are exempt from these new work requirements.
Permitting Reform and Surprises 🚧😮
The agreement contains some unexpected elements. Efforts are being made to expedite the approval process for energy projects. The deal establishes a lead agency to oversee reviews and requires completion within one to two years. But here’s the big surprise: the agreement includes a fast track for the construction of a new natural gas pipeline from West Virginia to Virginia. This pipeline has been strongly supported by Republican lawmakers and a centrist Democrat. Environmentalists and civil rights activists have opposed the project, but the bill declares it as “required in the national interest.”
Student Loans and Unspent Covid Money 🎓🦠
The bill will bring an end to President Biden’s freeze on student loan repayments by August. However, House Republicans wanted to halt Biden’s student loan forgiveness program, which he introduced last year. As the program is currently under review by the Supreme Court, the bill does not take action on it. Additionally, the bill will claw back approximately $30 billion in unspent Covid relief funds from a previous bill signed by Biden. Some of this money will be redirected to bolster nondefense discretionary spending. Rest assured, important Covid programs like Project NextGen and free coronavirus shots for the uninsured will continue to receive funding.
Avoiding a Government Shutdown 🛑
This agreement sets the stage for the next two years of spending, but Congress must fill in the details by passing additional spending bills. Failure to agree on these plans in time could lead to a government shutdown. To avoid this, the agreement includes a provision that threatens to reduce spending deemed important to both parties. If lawmakers fail to pass all 12 regular funding bills by the end of the year, the agreement tightens spending caps. Nondefense discretionary spending would be set at 1 percent below current year levels. This could result in significant cuts to defense and veterans’ spending compared to the agreed-upon caps. Democrats believe these looming cuts to military spending will provide a strong incentive for Republicans to strike a deal and pass appropriations bills on time.
What’s Not in the Bill ❌
The final agreement falls short of the debt reduction goals of both sides. Republicans wanted deeper spending cuts and stricter work requirements, while Biden sought to raise taxes on corporations and high earners and reduce Medicare’s spending on prescription drugs. None of these measures made it into the deal.
The full legislative text has laid out all the details, and now it’s up to the House to vote. This deal has its ups and downs, but it represents a compromise that will shape the nation’s spending for the next couple of years.
