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Biden celebrates bipartisanship: ‘Crisis averted’

President Joe Biden celebrated a “crisis averted” in his inaugural speech to the nation from the Oval Office Friday evening, ready to sign a budget agreement that eliminates the potential for a first-ever government default that would have sent shock waves through the U.S. and global economies, according to the Associated Press:

Biden celebrates bipartisanship: ‘Crisis averted’

Newslooks- WASHINGTON (AP)

President Joe Biden celebrated a “crisis averted” in his inaugural speech to the nation from the Oval Office Friday evening, ready to sign a budget agreement that eliminates the potential for a first-ever government default that would have sent shock waves through the U.S. and global economies.

The bipartisan measure was approved by the Senate late Thursday night after passing the House in yet another late session the night before. Biden is set to sign it at the White House on Saturday with just two days to spare until the Treasury Department has warned the U.S. wouldn’t be able to meet its obligations.

Voting tally sheets are seen in the press gallery after a hectic series of amendment votes and final passage on the big debt ceiling and budget cuts package, at the Capitol in Washington, Thursday, June 1, 2023. The legislation now goes to President Joe Biden’s desk to become law before the fast-approaching default deadline. (AP Photo/J. Scott Applewhite)

The agreement was hashed out by Biden and House Speaker Kevin McCarthy, giving Republicans some of their demanded federal spending cuts but holding the line on major Democratic priorities. It raises the debt limit until 2025 — after the 2024 presidential election — and gives legislators budget targets for the next two years, in hopes of assuring fiscal stability as the political season heats up.

“No one got everything they wanted but the American people got what they needed,” Biden said, highlighting the “compromise and consensus” in the deal. “We averted an economic crisis and an economic collapse.”

“We’re cutting spending and bringing deficits down at the same time,” Biden said. “We’re protecting important priorities from Social Security to Medicare to Medicaid to veterans to our transformational investments in infrastructure and clean energy.”

President Joe Biden addresses the nation on the budget deal that lifts the federal debt limit and averts a U.S. government default, from the Oval Office of the White House in Washington, Friday, June 2, 2023. (Jim Watson/Pool via AP)

Biden’s remarks were the most detailed comments from the Democratic president on the compromise he and his staff negotiated. He largely remained quiet publicly during the high-stakes talks, a decision that frustrated some members of his party but was intended to give space for both sides to reach a deal and for lawmakers to vote it to his desk.

“Passing this budget agreement was critical,” Biden was to say. “The stakes could not have been higher.”

White House press secretary Karine Jean-Pierre said Friday that Biden was using the occasion to deliver his first address to the nation from behind the Resolute Desk in the Oval Office because “he just wanted to make sure that the American people understood how important it was to get this done, how important it was to do this in a bipartisan way.”

House Speaker Kevin McCarthy of Calif. along with other Republican members of the House, speaks at a news conference after the House passed the debt ceiling bill at the Capitol in Washington, Wednesday, May 31, 2023. The bill now goes to the Senate. (AP Photo/Jose Luis Magana)

Biden praised McCarthy and his negotiators for operating in good faith, and all congressional leaders for ensuring swift passage of the legislation. “They acted responsibly, and put the good of the country ahead of politics,” he said.

Overall, the 99-page bill restricts spending for the next two years and changes some policies, including imposing new work requirements for older Americans receiving food aid and greenlighting an Appalachian natural gas pipeline that many Democrats oppose. Some environmental rules were modified to help streamline approvals for infrastructure and energy projects — a move long sought by moderates in Congress.

Senate Majority Leader Chuck Schumer, D-N.Y., says good night after speaking to reporters following a hectic series of amendment votes and final passage on the big debt ceiling and budget cuts package, at the Capitol in Washington, Thursday, June 1, 2023. The legislation now goes to President Joe Biden’s desk to become law before the fast-approaching default deadline. (AP Photo/J. Scott Applewhite)

The Congressional Budget Office estimates it could actually expand total eligibility for federal food assistance, with the elimination of work requirements for veterans, homeless people and young people leaving foster care.

The legislation also bolsters funds for defense and veterans, cuts back some new money for Internal Revenue Service and rejects Biden’s call to roll back Trump-era tax breaks on corporations and the wealthy to help cover the nation’s deficits. But the White House said the IRS’ plans to step up enforcement of tax laws for high-income earners and corporations would continue.

In this image from Senate Television, the final vote of 63-36 shows passage of the bill to raise the debt ceiling Thursday night, June 1, 2023, in the Senate at the Capitol in Washington. President Joe Biden is expected to quickly sign the bill that will stave off default. (Senate Television via AP)

The agreement also imposes an automatic overall 1% cut to spending programs if Congress fails approve its annual spending bills — a measure designed to pressure lawmakers of both parties to reach consensus before the end of the fiscal year in September.

In both chambers, more Democrats backed the legislation than Republicans, but both parties were critical to its passage. In the Senate the tally was 63-36 including 46 Democrats and independents and 17 Republicans in favor, 31 Republicans along with four Democrats and one independent who caucuses with the Democrats opposed.

The vote in the House was 314-117.

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