The agreement between President Joe Biden and House Speaker Kevin McCarthy to lift the federal debt limit has received opposition from both Democrats and Republicans.
The House of Representatives is due to vote on the measure Wednesday, and it must pass both houses by June 5, the date Treasury Secretary Janet Yellen says is the latest the government will be able to pay its bills without selling new bonds. The deal was announced late Saturday.
Failing to lift the debt ceiling would have drastic consequences for markets, since U.S. government bonds are the cornerstone of the global financial system. Investors have been kept on edge for months about whether a default might occur as House Republicans sought to secure spending cuts to the federal budget in exchange for agreeing to lift the limit.
Two Republicans on the House Rules Committee, the gatekeeper for legislation coming to the floor, have said they oppose the deal, The Wall Street Journal reported. That raises the possibility that McCarthy will have to rely on votes from the minority Democratic Party to get a vote to the floor, which could damage his standing.
Republicans who are opposing the deal say the spending cuts don’t go far enough. Democrats who are against it say the cuts are too severe.
Biden and McCarthy both said over the weekend they are confident the deal will pass.
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