Negotiators for President Biden and House Speaker Kevin McCarthy (R-CA) struck an agreement late Saturday, May 27 on legislation that would suspend the debt ceiling until Jan. 1, 2025, while administering limits on discretionary government spending for two years, new work requirements for certain federal aid recipients and cancellations of unspent COVID-19 funds. On Friday, May 26, Treasury Secretary Yellen notified lawmakers that the U.S. is expected to have until June 5 until it risks defaulting on its debt. The bill, called the Fiscal Responsibility Act of 2023 (H.R. 3746), will need to be passed by both chambers of Congress by June 5 to avert default.

House members voted 314-117 on Wednesday evening to pass the Fiscal Responsibility Act (FRA). The bill now goes to the Senate, where lawmakers in both parties have raised questions about the deal. A section-by-section summary of FRA can be viewed here. If enacted, the bill would:

• Establish fiscal year (FY) 2024 and FY2025 defense and non-defense discretionary (NDD) spending caps.
• Rescind $27 billion of unobligated funds that were provided to address COVID-19.
• End the suspension of federal student loan payments.
• Expand work requirements for the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF) program.
• Expedite the permitting process for certain energy projects.
• Extend the debt ceiling through January 1, 2025.

Read more here.