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Deal governance in United States

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well we haven't seen the text of it yet it sounds as though the finer details are still being worked out but essentially what President Joe Biden and Republican house Speaker Kevin McCarthy have agreed to is to raise the nation's debt ceiling for two years while at the same time capping and in some cases cutting government spending over that same time period this has been a really intense round of negotiations the president canceled a visit that he was supposed to make to Australia recently in order to focus on these talks and the most recent warning that we'd had from the treasury secretary was that the U.S could run out of money to pay its bills by June 5th if the debt limit was not lifted so Joe Biden has described this in principal agreement as a compromise he says it means not everyone gets what they want that's the responsibility of governing but he says that it's good news for the American people because it prevents uh in his words what could have been a catastrophic default and would have led to an economic recession retirement accounts devastated and millions of jobs lost we've also heard from Kevin McCarthy this deal was announced late on a Saturday night local time in the middle of a long weekend but he spoke to reporters shortly after getting off the phone to the president to provide an update on where things stand at this stage we still have a lot of work to do but I believe this is an agreement in principle that's worthy of the American people it has historic reductions in spending consequential reforms that will lift people out of poverty into the workforce reign in government overreach there are no new taxes no new government programs there's a lot more within the bill we still have more work to do tonight to finish all the writing of it so Jay this is a major step forward but the agreement isn't guaranteed yet no that's right it still needs to be passed by a divided Congress Republicans control the House of Representatives and Democrats hold the Senate so both sides will need enough support from both parties in order to get this passed and as the president said not everyone has got what they wanted here Kevin McCarthy could face particular pressure from some Republicans who had really been pushing for deeper spending cuts so this is a really significant breakthrough but as the speaker said there is still a lot of work to do before this is put to a vote in both Chambers next week

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