Fiscal conservatives react to debt ceiling deal. Democratic President Joe Biden and House Speaker Kevin McCarthy (R–Calif.) have reached a deal on the debt ceiling, after a monthslong standoff in which Republicans said they wouldn't raise the federal government's borrowing limit unless Democrats agreed to certain spending cuts. If the debt ceiling isn't raised, the U.S. will have to start defaulting on its debts.
But for anyone hoping the standoff would inject a little more fiscal discipline into the mix, the Biden-McCarthy deal is pretty much a dud. McCarthy has agreed to suspend the debt ceiling through January 2025. The deal will also raise military spending to Biden's desired level and only sets an enforceable cap on non-defense discretionary spending for two years. And those caps keep spending at post-COVID levels, without rolling back any of the big $1.7 trillion omnibus spending approved last year.
