Spending and debt ceiling plan: What’s next? 

President Biden and Speaker Kevin McCarthy (R-Calif.) reached an agreement in principle late Saturday to cap spending and raise the debt ceiling in an effort to avoid a potentially disastrous financial crisis. Attention is now focusing on the release of the legislative text, which is being finalized. 

McCarthy said that he will abide by the 72-hour rule — providing lawmakers a full three days to read the text of the legislation before they’re asked to vote on it — and could release the text of the legislation on Sunday.

With lawmakers not expected to return to work from the Memorial Day recess until Tuesday at the earliest, McCarthy said that expects to stage a floor vote on the bill as early as Wednesday, with the bill likely facing an uphill battle in the House as conservative House Republicans are already lining up to criticize the agreement.  

Rep. Dan Bishop (R-N.C.), for example, tweeted a vomiting emoji, noting that some Republicans are “congratulating McCarthy for getting almost zippo in exchange for $4T debt ceiling hike.” Rep. Chip Roy (R-Texas) also tweeted out his hesitancy, saying “I do not like the ‘deal’ as I understand it from the cheerleading so far” 

If it passes the House, the legislation would still need to be approved by the Senate, where Democrats hold the majority. If the measure passes both chambers without any holdups, then default should be avoided by the June 5 deadline.  

Treasury Secretary Janet Yellen warned lawmakers last week that the agency would run out of funds and default on June 5 without congressional action. McCarthy vowed Saturday night that Congress would meet that deadline.  

The agreement announced late Saturday would raise the debt ceiling by two years instead of specifying a monetary amount, meaning that the lawmakers can avoid the issue until after the next presidential election. It also includes some additional work requirements for food stamp recipients and for those enrolled in the Temporary Assistance for Needy Families (TANF) program. 

The deal also includes no new taxes for new programs, McCarthy said Saturday. It does include a clawback from COVID-19 relief funds and no budget caps after 2025, a source familiar with the agreement told The Hill.

White House officials planned to brief House Democrats on the agreement in a video call on Sunday.

–Updated at 8:08 a.m.