Sentinel & Enterprise

What’s in, what’s out of the deal to avert

- By Kevin Freking and Farnoush Amiri

President Joe Biden and House Speaker Kevin Mccarthy have reached an agreement in principle on legislatio­n to increase the nation's borrowing authority and avoid a federal default.

Negotiator­s are now racing to complete the bill's text. Mccarthy, R- Calif., said the House will vote on the legislatio­n on Wednesday, giving the Senate time to consider it before June 5, the date when Treasury Secretary Janet Yellen said the United States could default on its debt obligation­s if lawmakers did not act in time.

While many details about the deal are unknown, both sideswill be able to point to some victories. But some conservati­ves expressed early concerns that the compromise does not cut future deficits enough, while Democrats have been worried about proposed changes to work requiremen­ts in programs such as food stamps.

A look at what's in and out of the deal, based on what's known so far:

Two-year debt increase, spending limits

The agreement would keep nondefense spending roughly flat in the 2024 fiscal year and increase it by 1% the following year, as well as provide for a twoyear debt-limit increase — past the next presidenti­al election in 2024. That's according to a source familiar with the deal who provided details on the condition of anonymity.

Veterans care

The agreement would fully fund medical care for veterans at the levels included in Biden's proposed 2024 budget blueprint, including a fund dedicated to veterans who have been exposed to toxic substances or environmen­tal hazards. Biden sought $20.3 billion for the toxic exposure fund in his budget and Republican negotiator­s ensured Sunday that funding was left untouched.

Work requiremen­ts

Republican­s had proposed boosting work requiremen­ts for able-bodied adults without dependents in certain government assistance programs. They said it would bringmore people into the workforce, who would then pay taxes and help shore up key enti

tlement programs, namely Social Security and Medicare.

The agreement would expand some work requiremen­ts for the Supplement­al Nutrition Assistance Program, or SNAP, formerly known as food stamps. It would raise the age for existing work requiremen­ts from

49 to 54, similar to the Republican proposal, but those changes would expire in 2030. The White House said it would at the same time reduce the number of vulnerable people — including veterans and people who are homeless — of all ages who are subject to the requiremen­ts.

Many of those changes will sunset in 2030, allowing Congress to measure the effectiven­ess of these changes and make

changes if need be.

Unspent COVID money

The agreement would rescind about $ 30 billion in unspent coronaviru­s relief money that Congress approved through previous bills, with exceptions made for veterans' medical care, housing assistance, the Indian Health Service, and some $ 5 billion for a program focused on rapidly developing the

next generation of COVID-19 vaccines and treatments.

Speeding up energy projects

The deal puts in place changes in the National Environmen­tal Policy Act for the first time in nearly four decades that would designate “a single lead agency” to develop environmen­tal reviews, in hopes of streamlini­ng the process.

Student loans

Republican­s have long sought to reel back the Biden administra­tion's efforts to provide student loan relief and aid to millions of borrowers during the coronaviru­s pandemic. While the GOP proposal to rescind the White House's plan to waive $10,000 to $20,000 in debt for nearly all borrowers failed to make it into the package, Biden agreed to put an end to the pause on stu

dent loan repayment.

Once Biden signs the package, the pause in student loan repayments would end within 60 days.

The fate of student loan relief, meanwhile, will be decided at the Supreme Court, which is dominated 6- 3 by its conservati­ve wing. During oral arguments in the case, several of the justices expressed deep skepticism about the legality of Biden's plan. A decision is expected before the end of June.

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