President Trump has announced that he’s cut a major deal with Congressional leaders over a budget for the next two years. And while we don’t know all the details yet, we do know that it included raising the debt ceiling. More on that in a minute.
Trump first tweeted news of the deal noting that there are no controversial amendments that might derail it. He called it a great compromise that is a big victory to the military and veterans. “I am pleased to announce that a deal has been struck…with no poison pills,” he wrote. “This was a real compromise in order to give another big victory to our Great Military and Vets!”
The agreement suspends the debt ceiling limit until July 2021. That means there won't be the threat of reaching its borrowing limit causing government funding to lapse. The Democratic leadership in Congress is praising a bipartisan budget deal. In a joint statement, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said the deal enhances national security and invests in the middle class.
So what’s a debt ceiling? For average Americans, that’s like the balance in our bank account – as in, the maximum amount of money we have to cover our bills. We can only borrow so much – and while we’re out of luck if we run out of money, it’s different for the Feds. They can simply “kick the can down the road” and decide to borrow more.
Source: The Hill