Debt ceiling deal reached in principle by Biden and McCarthy to avoid default : NPR

The Capitol is seen in Washington on May 22.

J. Scott Applewhite/AP

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J. Scott Applewhite/AP

The Capitol is seen in Washington on May 22.

J. Scott Applewhite/AP

Negotiators for President Joe Biden and House Republicans reached an agreement in principle to avoid default, House Speaker Kevin McCarthy told reporters Saturday night.

He plans to put the measure to a vote in the House chamber as early as next Wednesday.

“After weeks of negotiations, we have come to an agreement in principle,” McCarthy said speaking in the U.S. Capitol. “We still have a lot of work to do but I believe this is an agreement in principle that’s worthy of the American people.“

House Republican leaders are planning to hold a call with GOP members Saturday evening to unveil the details of the deal.

McCarthy praised the agreement for having “historic reductions in spending,” while also ensuring there would be “no new taxes and no new government programs.” He added that the deal included “consequential reforms that will lift people out of poverty and into the workforce.”

McCarthy said that members are still working through the night to write the bill. He expects to finish drafting the bill and to have another conversation with President Biden tomorrow, before posting the text of the legislation Sunday afternoon.

The breakthrough comes about an hour after House Speaker Kevin McCarthy and President Biden spoke on the phone. Earlier in the day, Biden spoke with Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.

The deal also follows weeks of negotiations and a tense creep toward potential default on the nation’s loans. The final deal is expected to have opponents on the extremes of both parties, but the announcement indicates that Republican and Democratic leaders believe they have the support necessary to pass the legislation.

On Friday, Treasury Secretary Janet Yellen updated her guidance on the so-called “X date” — when the U.S. would run out of money to pay its bills — to June 5. Previously she had said it would be as early as June 1.

The timeline to avoid a default remains tight. McCarthy has vowed that House members would get 72 hours to review any legislation before a vote. After that, the bill would head to the Senate for a vote on final passage and then to the president to sign.