White House, Republicans reach debt ceiling deal in principle

NEW YORK, May 27 (Xinhua) -- U.S. White House and Republicans on Saturday reached an "agreement in principle" to raise the debt ceiling to avert a possible default amid deep partisan divide and global concerns.

The agreement is an important step forward and represents a compromise, said U.S. President Joe Biden in a statement.

"Over the next day, our negotiating teams will finalize the legislative text and the agreement will go to the United States House and Senate," said Biden.

U.S. House Speaker Kevin McCarthy also announced the news on his social media account.

The text of the debt ceiling agreement will be available to lawmakers on Sunday and the House of Representatives will vote on it on Wednesday, said McCarthy.

Both Biden and McCarthy claimed credit for the breakthrough, though no detail of the agreement was revealed formally.

"The agreement reduces spending while protecting critical programs for working people and growing the economy for everyone," said Biden in the statement, while urging both chambers of Congress to pass the agreement right away.

Republicans are poised to deliver a big, consequential change in Washington by stopping Democrats' reckless spending, clawing back unspent COVID funds, and blocking Biden's new tax schemes, said McCarthy.

It's widely reported that the deal would suspend the debt limit until January 2025, allowing the upcoming presidential election not to be troubled by the debt ceiling issue.

However, it's not clear if the agreement would win enough support in Congress as Republicans control the House and Democrats have an upper hand in the Senate.

The Department of Treasury will have insufficient resources to satisfy the government's obligations if Congress has not raised or suspended the debt limit by June 5, said U.S. Treasury Secretary Janet Yellen on Friday.

The debt ceiling has been modified 102 times since World War II, according to the U.S. Congressional Research Service.