The repercussions of this agreement, led by Joe Biden
The measure suspends the debt ceiling for the next two years, until after the November 2024 presidential elections. Specifically, it suspends the current debt limit of $31.4 trillion until January 1, 2025.
In return, the agreement reached over the weekend between the White House and the Republicans of the Lower House contemplates, among others, caps on spending on programs financed by Congress in areas such as health, education, justice or environmental protection.
At the same time, it cuts part of the new funds earmarked for the Public estate to reassign them to items that are not defense and contemplates the resumption of payments by university students of the debt they have accumulated.
Under that pact, non-defense spending will stay the same in fiscal year 2024 and increase 1% in fiscal year 2025.
Likewise, it tightens the work requirements to access social benefits, such as food stamps, and rescinds 28,000 million unspent dollars that had been assigned to aid programs against the pandemic.
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The approval of the agreement in Congress and the subsequent signing of the president was crucial so that the country did not default on its public debt, after the debt ceiling was reached last January, the legal limit to the money that the United States. The US can borrow to meet its commitments.