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Crucial days ahead as debt ceiling deal goes for vote and Biden calls lawmakers for support
President Biden says he "feels good" about the debt ceiling and budget deal negotiated with House Speaker Kevin McCarthy as the White House and congressional leaders work to ensure its passage this week in time to lift the nation’s borrowing limit and prevent a disastrous U.S. default.
OAKLAND - President Biden and House Speaker Kevin McCarthy are expressing optimism that their debt limit compromise deal, will be able to pass the House and Senate by the deadline June 5th.
If Congress cannot pass the 99-page bill, titled the "Fiscal Responsibility Act," by that date, the United States could default on our national debt, sending shock waves through the economy and world markets.
The House Rules Committee is scheduled to take up the bill Tuesday afternoon at 3:00 pm est.
Speaker McCarthy says he wants a full House vote by Wednesday.
The bill is now facing hurdles in the House, however, as both parties try to get hard-line progressives and hard-line conservatives on board in order to pass the deal and prevent a default on the nation's debts.
President Biden on Monday said he's been reaching out to people in both parties.
"I've spoken to a number of the members, I spoke to McConnell, I spoke to...a whole bunch of people, and it feels good, we'll see when the vote starts," said Biden.
Speaker McCarthy claimed victory in a tweet Monday night saying, "Historic $2.1 Trillion spending cut" and adding "Republicans are changing the culture and trajectory of Washington—and we’re just getting started."
Republicans, however, did not get the deep cuts they'd proposed, and some GOP lawmakers are skeptical, worried that McCarthy's deal doesn't go far enough.
"The question that everybody's struggling with is, 'Is it enough?" said Florida Republican Congressman Brian Mast, "I haven't committed yes or no yet."
The 99-page bill is a two-year deal that would suspend the debt limit through January 2025, pushing the debt limit issue until after the next presidential election.
The bill would keep spending at the same levels for 2024, and limit spending increases to 1% in 2025, with the exception of the military.
It also rescinds $30 billion in unspent coronavirus relief funds, and rescinds $1.4 billion that was designated for IRS tax fraud crackdowns.
The deal streamlines environmental reviews for energy projects and has a special approval of permits for a Mountain Valley Pipeline for natural gas in West Virginia that was supported by Democratic Senator Joe Manchin.
On student loans, Republicans did not get a reversal on President Biden's proposed loan waivers, but Biden did agree to allow student loan payments to resume at the end of August.
For food stamp recipients, Republicans raised the work requirement from 49- to 54-years-old. President Biden added an exemption for veterans and homeless people.
Economists say the debt ceiling deal would not upend the economy.
"We're not talking about very large cuts to any programs. We're not talking about large tax increases, in fact no tax increases," said Jim Wilcox, Professor of Finance at the UC Berkeley Haas School of Business.
"There is no reason why it shouldn't get done by the fifth. I'm confident that we'll get a vote in both houses, and we'll see," said Biden.
Jana Katsuyama is a reporter for KTVU. Email Jana at jana.katsuyama@fox.com and follow her on Twitter @JanaKTVU or Facebook @NewsJana or ktvu.com.