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June 2, 2023 9:32am

Congress passes debt limit bill

Updated June 2, 2023

Last night, the U.S. Senate passed the Fiscal Responsibility Act with bipartisan support, averting a potential government shutdown and economic catastrophe.  After weeks of negotiation, the White House and Congressional leaders announced the compromise last weekend and was quickly passed by the House earlier this week with support from both sides of the aisle.

The bipartisan deal includes a two-year suspension of the current $31.4 trillion debt ceiling coupled with spending limits, permitting reform, and repeal of unspent COVID funds. GLI applauds the bipartisan passage to find compromise to ensure economic stability for our nation and control future spending.

What’s in the agreement:

  • Cuts nondefense spending and limits all discretionary spending to 1 percent growth in 2025.
  • Reduces $20 billion in funding to the Internal Revenue Service that was appropriated in last year’s Inflation Reduction Act.
  • Institutes new work requirements for adults ages 50-54 who do not have dependent children and receive food stamps through the Supplemental Nutrition Assistance Program (SNAP) and aid from the Temporary Assistance for Needy Families Program (TANF). Exclusions apply for veterans, homeless individuals, and others.
  • Streamlines permitting for energy projects by creating a lead agency to oversee reviews and ensure that they are completed in 1-2 years.
  • Repeals $30 billion in unspent COVID relief funding.
  • Ends the freeze on student loan repayments by August 2023.

Scoring from the nonpartisan Congressional Budget Office released Tuesday estimated that the proposal will save $1.3 trillion over the next decade with another $188 billion in reduced interest costs.

What’s next?

The measure now heads to President Biden where he is expected to quickly sign the deal into law.

Thank you to Senator McConnell, Senator Young, Rep. McGarvey, Rep. Guthrie, and Rep. Houchin for supporting this measure.