Debt Ceiling Deal Reached
On May 28, 2023, an agreement in principle was reached between the White House and House Speaker Kevin McCarthy (R-CA) to suspend the US debt ceiling until 2025.
In the United States, the debt ceiling is a legislative limit on the amount of national debt that can be incurred by the U.S. Treasury.
The agreement includes:
Level funding for non-defense discretionary spending in 2024 and a one percent increase in 2025. After 2025, there are no hard budget caps. However, the agreement reportedly includes a deal to limit topline federal spending to one percent of annual growth for six years. The agreement also includes a deal to encourage Congress to pass annual appropriations legislation on time or face automatic cuts.
It gradually increases age requirements from 50 years to 55-years-old for adults without dependents under the Supplemental Nutrition Assistance Program (SNAP).
Unspent federal funding appropriated to respond to COVID-19 will be rescinded and can be used for non-defense discretionary items, including Provider Relief Fund and USDA Distance Learning, Telemedicine, and Broadband program.
Changes to Temporary Assistance for Needy Families (TANF) to examine how TANF is used by states.
Provisions related to permitting process for energy projects, student loan repayments, funding for the Internal Revenue Service (IRS).
The next step in the process is for the House of Representatives to consider the text of the agreement. The House Committee on Rules held a markup of the bill at 3 p.m. EDT May 30. The bill was advanced out of the committee by a vote of 7-6.
The full House is scheduled to begin consideration on the text on May 31. This is a rapidly developing situation, and NRHA will continue to monitor and keep you informed. Legislative text of the current agreement can be found here.
As Congress considers this agreement, it is critical that funding for rural health care programs is protected. NRHA continues to advocate for robust federal funding of these programs. For more information about NRHA’s advocacy related to appropriations for fiscal year 2024 (FY24), visit our website.