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US debt ceiling maintains defence spending, edits welfare requirements

  • By Al Mayadeen English
  • Source: Agencies
  • 29 May 2023 19:52
3 Min Read

US President Joe Biden reaches a bipartisan deal with House Speaker Kevin McCarthy on a spending bill maintaining defense expenditure while editing welfare requirements.

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  • US President Joe Biden speaks at an event at Carpernters Pittsburgh Training Center in Pittsburgh, Pennsylvania, US, March 31 2021. (Reuters)
    US President Joe Biden speaks at an event at Carpenters Pittsburgh Training Center in Pittsburgh, Pennsylvania, US, March 31 2021 (Reuters)

US President Joe Biden and House Speaker Kevin McCarthy have reached a bipartisan agreement on proposed legislation that encompasses several crucial measures. The bill aims to impose limits on non-defense discretionary spending, enforce work requirements for welfare programs, and reclaim unused funds designated for COVID-19 relief efforts.

The US President said that the plan is ready to be presented to Congress, urging both the Senate and the House of Representatives to pass the legislation.

Biden claimed that the role of the agreement is crucial in eliminating the immediate threat of default and safeguarding the ongoing economic recovery of the United States.

Biden admitted that the agreement is the result of compromise, acknowledging that not all parties involved achieved their desired outcomes.

The #US is at risk of defaulting next month if the debt ceiling problem isn't resolved, and negotiations are at a stalemate, meaning a solution is not likely to be reached soon regarding the issue. pic.twitter.com/kFyvVHhrU8

— Al Mayadeen English (@MayadeenEnglish) May 20, 2023

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According to the provisions within the bill, the Biden administration will be allocated $704 billion for non-defense spending.

This allocation will be relatively the same for the year 2024, with a modest 1% increase to $711 billion expected in 2025.

On the other hand, the proposed legislation designates $886 billion for the year 2024, with a subsequent increase to $895 billion in the following year, for defense expenditure.

The legislation also introduces significant changes to the work requirements for able-bodied adults participating in the Supplemental Nutrition Assistance Program (SNAP). Under the new provisions, the maximum age limit will be gradually raised to 54 by 2025. However, it's important to note that this particular provision is set to expire by 2030, thereby reverting the maximum age back to 49.

Additionally, the bill aims to retrieve approximately $30 billion in unutilized funds that were initially allocated for COVID-19 aid.

Furthermore, the legislation introduces measures to streamline environmental reviews as a designated lead agency will assume responsibility for preparing environmental documentation specific to various energy projects.

Moreover, the bill expedites the completion of the Mountain Valley Pipeline, a project located in West Virginia.

It's worth noting that if the White House fails to garner Republican support in Congress to raise the nation's $31.4 trillion debt ceiling, the US risks approaching a default on its financial obligations.

Read more: US debt ceiling agreement reached 'in principle', not fully there yet.

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