Debt ceiling compromise leaves a lot to be desired. A look at key takeaways

President Joe Biden and House Speaker Kevin McCarthy announced that they have reached a tentative deal to raise the nation’s debt ceiling limit ending last-minute negotiations ahead of a possible default on paying the nation’s debt.

In January, the U.S. reached a debt limit of $31.381 trillion. Treasury Secretary Janet Yellen warned that the U.S. could default on its financial obligations by June 5 if Congress doesn’t act to increase it.

The new deal would grant the Treasury borrowing authority through the end of 2024 to finance the payment of obligations Congress has already approved. At the same time, it caps annual discretionary spending until 2025. This means that funding for domestic programs will remain the same next year. The deal also sets six years of unenforceable appropriations spending "targets."

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McCarthy said he would give lawmakers 72 hours to review the agreement before voting. With congressional members not expected to return from their Memorial Day weekend break until Tuesday, that leaves Congress only hours to review the deal and vote.

Compromises constrain Republican demands

Concessions made by leaders from both parties have angered Democratic and Republican hardliners. The compromise gives in to Republican demands over spending, welfare and environmental laws but with restraints. “It has historic reductions in spending, consequential reforms that will lift people out of poverty into the workforce and reins in government overreach," McCarthy said in a brief address from the Capitol.

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Here are other key takeaways if the proposed agreement is approved:

• Set time limits for how long able-bodied adults 54 years old or younger without dependent children can receive Supplemental Nutrition Assistance Program (SNAP) benefits or food stamps if they do not meet certain work requirements

• Impose additional work requirements for recipients of the Temporary Assistance for Needy Families (TANF)

• It would rescind $10 billion out of the $80 billion in IRS funding approved in Biden's Inflation Reduction Act last year which was intended to pursue tax evasion committed by corporations and wealthy Americans

• The deal would repeal billions in unspent COVID-19 pandemic relief funding. A memo circulated by House Republican leadership said the rollbacks include slashing $400 million from the Centers for Disease Control and Prevention's "Global Health Fund."

The deal successfully thwarted Republican attempts to nullify the Inflation Reduction Act − the president's signature climate and prescription drug bill − and the student loan forgiveness program. In concise wins for the White House, the compromise would expand food benefits for the homeless and veterans and increase funding for medical care for military veterans. It would also push another possible debt limit showdown past the next presidential election.

Contact reporter Anitra Johnson at ajohnson@delawareonline.com. Join her on the Facebook group Delaware Voices Uplifted. Support her work and become a subscriber.

This article originally appeared on Delaware News Journal: Debt ceiling deal key takeaways targets poor and spares tax cheats