The United States managed to avoid a major economic crisis by reaching an agreement on raising its debt ceiling.
Over the weekend, President Joe Biden and House Speaker Kevin McCarthy finalized a budget deal as one of the steps to resolve the issue.
Among the 'compromise' made in the agreement is that the US cannot increase non-defense spending until 2025 and withdraw unused Covid aid funds.
Additionally, they will speed up the permitting process for some energy projects and include additional work requirements for food assistance programs for poor citizens.
Through the agreement, the US will suspend the debt limit until January 1, 2025.
The 99-page bill would authorize security spending in fiscal year 2024 of up to more than $886 billion, and $703 billion in non-security spending for the same year.
It would also authorize a 1% increase for security spending in fiscal year 2025.
Although an agreement has been reached, the bill still needs to be voted on by the House of Representatives (majority Republicans) and the Senate (majority Democrats).
If approved by both Houses, it will be taken directly to President Biden to be signed into law and implemented.
