Takeaways on debt ceiling: McCarthy’s balancing act, Biden’s choice and the challenges ahead

By MARY CLARE JALONICK and SEUNG MIN KIM
Associated Press

WASHINGTON (AP) — After weeks of negotiations, President Joe Biden and House Speaker Kevin McCarthy have struck an agreement to avert a potentially devastating government default. The stakes are high for both men — and now each will have to persuade lawmakers in their parties to vote for it. Treasury Secretary Janet Yellen said last week that the United States could run out of cash to pay the bills and default on its debt obligations by June 5. The ultimate agreement is a two-year budget deal that would essentially hold spending flat for 2024, while boosting it for defense and veterans, and capping increases at 1% for 2025.