Revealing the specifics of the White House agreement with Congress to avoid default.

US media reports have shown that the default avoidance agreement in the United States includes a two-year increase in the national debt ceiling in exchange for federal spending cuts.

“The agreement, in principle, raises the debt ceiling by two years, limits non-defense spending for 2024, and increases it by 1% in fiscal 2025,” CNN told CNN, citing an unnamed source.

The network quoted a source familiar with the talks as saying the discussion between the White House and Republicans who control the House of Representatives over the debt ceiling was focused on raising or temporarily lifting it, which the opposition attributed to spending cuts.

Without congressional approval of additional US borrowing, according to the calculations of the Ministry of Finance, already in early June, they risked not fulfilling their obligations in full.

Earlier, US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy said that the agreement was reached “in principle”, but did not provide any additional details.

Both sides said the agreement, once finalized, would be published on Sunday and submitted as a bill next Wednesday to Congress for approval.

Source: News