China News Network, May 5 Comprehensive report, on the evening of the 28th local time, US House Speaker McCarthy and US President Biden both confirmed that House Republicans reached a "principled agreement" with the White House on solving the US debt ceiling issue.

McCarthy: Voting is scheduled to begin next Wednesday

McCarthy tweeted that after the call with Biden, the two sides "reached an agreement in principle that suits the American people."

Infographic: U.S. House Speaker McCarthy. Photo by China News Agency reporter Sha Hanting

He said Republicans were poised to bring about major changes, "and we will vote for a responsible debt limit deal, stop Democrats from spending recklessly, withdraw unspent COVID-related funds, block Biden's new tax plan, and more." He said there were "no new taxes and no new government plans" in the agreement.

At the heart of the package, according to the AP, is a two-year budget agreement that proposes to leave spending unchanged in 2024 and impose limits in 2025 in exchange for raising the debt ceiling for two years.

The AP believes the deal could anger both Democrats and Republicans because both sides made concessions to reach a deal.

The Associated Press said that as the outline of the agreement is finalized, the drafting of relevant legal documents will begin so that it can be voted on in the House of Representatives early next week and subsequently in the Senate.

According to the US Consumer News and Business Channel (CNBC), McCarthy said that he hopes to write the bill as soon as possible, verify with the White House and talk to Biden again, "After that, release the text of the bill tomorrow (28th) and vote on Wednesday (31st)." ”

Biden: Strongly demand that both houses pass the agreement immediately

On the 27th, Biden also posted on Twitter that he "reached a budget agreement with Speaker McCarthy in principle."

Infographic: US President Joe Biden.

Biden called the move an "important step forward" that would protect several key items while reducing spending. He believes the agreement will protect key Democratic priorities and legislative gains. Biden also said the deal represented a compromise, "that's the responsibility of the govern."

Biden called the agreement "good news for the American people because it prevents a catastrophic default that could bring recession, collapsed pension accounts, and job losses for millions." ”

Biden said that the negotiating group will finalize the legal text on the 28th, and the agreement will be submitted to the US House of Representatives and Senate. He "strongly advocates the immediate adoption of this agreement by the Senate and the House of Representatives."

Earlier, U.S. Treasury Secretary Yellen wrote to the leaders of the U.S. Congress on the 26th that the earliest date of the U.S. government's debt default was postponed to June 6, which would allow more time for bipartisan negotiations on the debt ceiling in the U.S. Congress.

Yellen has repeatedly warned that waiting until the last minute to suspend or raise the debt ceiling could cause serious damage to business and consumer confidence, higher short-term borrowing costs for taxpayers, and negative repercussions on U.S. credit ratings.