Biden touts tentative debt deal as ‘good news for the American people’

President Biden on Saturday hailed the tentative budget agreement struck between the White House and Speaker Kevin McCarthy’s (R-Calif.) team to avert a default and raise the debt ceiling.

“The agreement represents a compromise, which means not everyone gets what they want,” Biden said in a statement. “That’s the responsibility of governing.”

The president said the deal, which will be voted on in the coming days, “reduces spending while protecting critical programs for working people and growing the economy for everyone. And, the agreement protects my and Congressional Democrats’ key priorities and legislative accomplishments.”

“And, this agreement is good news for the American people, because it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost,” Biden added.

The president and the Speaker talked on the phone earlier Saturday to broker a final agreement on government spending that would also allow for the debt ceiling to be lifted just days before the U.S. was at risk of defaulting.

The agreement that was reached in principle must still make it through the House and Senate and will likely require a bipartisan vote.

It would lift the debt ceiling for two years and keeps non-defense spending roughly consistent with fiscal year 2023 levels.