However, the proposed legislation has faced criticism from both Republicans and Democrats. Some lawmakers from both parties have expressed opposition to certain aspects of the agreement, indicating potential hurdles during the voting process in the House and Senate.
The bill spans 99 pages and includes several key provisions. It raises the debt limit for two years, introduces stricter work requirements for federal public assistance programs, and rescinds around $28 billion in unused COVID-19 funding. Defense spending is capped at $886 billion for fiscal year 2024 and $895 billion for fiscal year 2025.
Notably, the bill maintains full funding for veterans' medical care and includes exemptions for veterans, homeless individuals, and former foster youth in the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. Work requirements for certain adults receiving food stamps would be temporarily broadened, gradually increasing the upper age limit to 55.
The bill also aims to claw back $30 billion in unobligated COVID-19 relief funds, while retaining funding for vaccine development, treatments, housing assistance, and the Indian Health Service.
Internal Revenue Service (IRS) funding would be cut, redirecting $20 billion to other non-defense areas and canceling the total fiscal year 2023 staffing funding request. The bill would require borrowers to resume student loan repayments, in line with the Biden administration's plans, while also maintaining the income-driven repayment plan and potential debt relief measures.
Climate and clean energy provisions from the Inflation Reduction Act would remain intact, and the bill would expedite the completion of the Mountain Valley Pipeline in West Virginia.
Speaker McCarthy released the bill's text on Sunday evening, initiating the 72-hour review period before the House vote. The House could vote on the bill as early as Wednesday, followed by Senate consideration. However, securing sufficient support from both sides of the aisle may prove challenging, as lawmakers express concerns about the legislation's provisions.
With a June 5 deadline looming, Treasury Secretary Janet Yellen has warned that the US risks running out of funds to meet its financial obligations without a debt ceiling increase, potentially leading to the nation's first-ever default. Senate Majority Leader Chuck Schumer has cautioned Senate Democrats that they may need to work through the coming weekend to ensure the bill's passage, given the possibility of procedural delays by conservative Senator Mike Lee.
The agreement follows negotiations between representatives designated by President Biden and Speaker McCarthy, with the aim of averting a default and raising the debt ceiling.