By Stefan J. Bos, Chief International Correspondent Worthy News
WASHINGTON (Worthy News) – U.S. President Joe Biden signed legislation raising the debt ceiling on Saturday, just two days before the June 5 default deadline and financial markets reopening.
Biden made the announcement while addressing the nation on how to avoid the first default in U.S. history, which could have global implications.
The president, who had been criticized over his perceived slow response to the crisis, said the bipartisan deal pulled the nation back from the brink of its first default, which would have led to “economic collapse.”
The agreement suspends the debt limit through January 1, 2025, and caps spending in the 2024 and 2025 budgets. Under the deal, the government will claw back unused COVID pandemic funds, speed up the permitting process for some energy projects, and impose additional work requirements for Americans who receive food aid.
The deal authorizes over $886 billion for security spending in the fiscal year 2024 and over $703 billion in non-security expenditures for the same year, not including some adjustments, Reuters news agency reported. It would also authorize a 1 percent increase in security spending in fiscal year 2025.
Biden described the bill’s enactment as “essential to the progress we’ve made over the last few years.” He said the deal was “keeping full faith and credit of the United States of America and passing a budget that continues to grow our economy and reflects our values as a nation.”
President Biden had to agree on spending cuts, including abandoning his planned loan forgiveness to students, as part of his negotiations with Republican House of Representatives Speaker Kevin McCarthy.
The U.S. Congressional Budget Office said on Tuesday its budget deficit projections would be reduced by about $1.5 trillion over the next 10 years if the debt ceiling was signed in its present form.
Yet the deal drew fire from hardline Republicans and progressive Democrats, but Biden and McCarthy successfully banked on getting enough votes from both sides.
The debt ceiling agreement ensures however there the issue will not come up next year when Biden seeks re-election despite concerns over his health and age after he fell on stage at the U.S. Air Force Academy graduation ceremony in Colorado on Thursday.
Reporters said the 80-year-old leader of the Free World tripped on a black sandbag being used to steady his teleprompter while shaking hands.
Hours later, Biden could be seen bumping his head on the top of a helicopter’s doorframe.
The White House press pool report confirmed the president hit his head but stressed he looked “spry” after getting off the helicopter on the South Lawn.
If you are interested in articles produced by Worthy News, please check out our FREE sydication service available to churches or online Christian ministries. To find out more, visit Worthy Plugins.