Tentative debt ceiling bill to be voted on Wednesday

WASHINGTON D.C. — House Speaker Kevin McCarthy announced Saturday night he and President Joe Biden reached a tentative deal on the nation’s debt ceiling.

>>RELATED: Debt ceiling: White House, Republicans strike deal to avoid default; vote is Wednesday

President Biden said in a statement Saturday’s agreement in principle is “an important step forward.”

“Earlier this evening, Speaker McCarthy and I reached a budget agreement in principle. It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone. And, the agreement protects my and Congressional Democrats’ key priorities and legislative accomplishments. The agreement represents a compromise, which means not everyone gets what they want. That’s the responsibility of governing. And, this agreement is good news for the American people, because it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost. Over the next day, our negotiating teams will finalize legislative text and the agreement will go to the United States House and Senate. I strongly urge both chambers to pass the agreement right away.”

Speaker McCarthy said Saturday that lawmakers still have work to do.

News Center 7′s Taylor Robertson says it’s now in the hands of Congress to get it to the President before the June 5th deadline.

>>RELATED: Biden says debt deal ‘very close’ with default deadline now set at June 5

“There are no new taxes, no more government programs,” said McCarthy. “We have more to do (Saturday) tonight to finish the writing of it.”

Robertson reports as the President left Washington Friday for the holiday weekend on Friday, he seemed to hint that a deal could soon be on the horizon.

“With regard to the debt limit, things are looking good, very optimistic,” said Biden.

Sources tell CNN a possible deal includes raising the nation’s borrowing limit and capping some spending for two years while keeping Social Security, Medicare, Veterans Services, and Military Services off the table for reductions.

There’s also talk of shifting $10 billion of new funding meant to ease backlogs at the I.R.S. and using it to pay for other programs, possibly including health care and transportation.

>>RELATED: Local, national impacts if debt ceiling agreement not reached

“I expect to finish the writing of the bill, checking with the White House, and speaking to the President again (Sunday) tomorrow afternoon,” said Speaker McCarthy.

Republicans have pushed White House negotiators on expanding federal work requirements on some of the people who receive federal assistance, including benefits to help buy food.

With most lawmakers gone for the Memorial Day holiday weekend, they will have to be called back to vote for a deal.

>>RELATED: Local expert warns of what could happen if debt ceiling not raised

McCarthy also praised the agreement on Twitter Saturday night.

Republicans are poised to deliver big, consequential change in Washington. Soon, we will vote for a responsible debt limit agreement that stops Democrats’ reckless spending, claws back unspent COVID funds, blocks Biden’s new tax schemes, & much, much more.

Robertson says experts warn that a potential default could lead to economic chaos. The stock market would likely plummet and interest rates would go up potentially sending the U.S. into a recession.

We will continue to provide updates on this developing story.