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| Original file line number | Diff line number | Diff line change |
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| @@ -0,0 +1,86 @@ | ||
| import Typography from '@mui/material/Typography'; | ||
|
|
||
| import InsightPage from '../../components/InsightPage'; | ||
|
|
||
| export default function DebtCeilingCompromise() { | ||
| return ( | ||
| <InsightPage | ||
| title='Compromise Agreement on Debt Ceiling' | ||
| image='https://portal.ehawaii.gov/assets/webp/page/government/federal/executive.webp' | ||
| description='White House and Congress Near Compromise Agreement on Debt Ceiling as Deadline Looms' | ||
| subheader='Political Insight' | ||
| authors={ | ||
| [ | ||
| 'Jason Estabillo' | ||
| ] | ||
| } | ||
| > | ||
| <Typography sx={{ paddingY: '1rem' }}> | ||
| Negotiations between the White House and congressional lawmakers are | ||
| intensifying as the deadline to raise the debt ceiling approaches. With | ||
| just six days remaining before the nation faces the risk of debt default, | ||
| both sides are closing in on a compromise agreement to extend the debt | ||
| ceiling for a two-year period. | ||
| </Typography> | ||
| <Typography sx={{ paddingTop: '1rem' }}> | ||
| The prospect of a deal has injected optimism into the markets, leading | ||
| to a rise in stocks on Friday morning. Meeting the Treasury Department's | ||
| June 1 deadline is crucial to avoid potential damage to the U.S. economy | ||
| and the jeopardy of essential benefits relied upon by millions of Americans. | ||
| </Typography> | ||
| <Typography sx={{ paddingTop: '1rem' }}> | ||
| House Speaker Kevin McCarthy, appearing upbeat, expressed confidence in | ||
| the progress made so far as he arrived at the Capitol on Friday morning. | ||
| Negotiators have been striving to strike a balance that would appease both | ||
| parties. Under the current proposed agreement, House Republicans would | ||
| achieve two of their top priorities in exchange for their support in | ||
| raising the debt ceiling. | ||
| </Typography> | ||
| <Typography sx={{ paddingTop: '1rem' }}> | ||
| The first priority for Republicans is to roll back baseline federal | ||
| spending for most discretionary programs in 2024. Additionally, they | ||
| seek to rescind a portion of the $80 billion allocated for the Internal | ||
| Revenue Service (IRS) as part of the 2022 Inflation Reduction Act. | ||
| By reallocating the rescinded IRS funds, the GOP aims to cover the funding | ||
| shortfall resulting from their proposed spending cuts, while ensuring | ||
| that programs like defense and veterans' health benefits remain untouched | ||
| and even receive increased funding next year. | ||
| </Typography> | ||
| <Typography sx={{ paddingTop: '1rem' }}> | ||
| While specific details are still being worked out, the trade-off | ||
| involving IRS funding is considered a crucial element of the negotiations. | ||
| House Republicans, led by Representatives Patrick McHenry and Garret | ||
| Graves, are working closely with the White House team, including Office | ||
| of Management and Budget Director Shalanda Young and Biden counselor Steve | ||
| Ricchetti, to navigate the challenging path towards a bipartisan solution. | ||
| </Typography> | ||
| <Typography sx={{ paddingTop: '1rem' }}> | ||
| The urgency of the situation was underscored by the recent announcement | ||
| from credit rating agency Fitch, which placed the United States' | ||
| triple-A status on "rating watch negative." Treasury Secretary | ||
| Janet Yellen warned that failure to raise or suspend the debt limit by | ||
| June 1 would likely result in the United States being unable to meet | ||
| its financial obligations. The potential consequences of a debt default | ||
| range from higher interest rates to a loss of confidence in the U.S. | ||
| dollar as the world's reserve currency. | ||
| </Typography> | ||
| <Typography sx={{ paddingTop: '1rem' }}> | ||
| Despite the challenges, there is still hope for a timely resolution. If | ||
| a final agreement is reached on Friday, there would be sufficient time for | ||
| the House to hold a vote on Tuesday, followed by a Senate vote on | ||
| Wednesday, just before the June 1 deadline. However, given the divided | ||
| nature of Congress, it is expected that the final bill may not garner | ||
| unanimous support from both Democrats and Republicans. | ||
| </Typography> | ||
| <Typography sx={{ paddingTop: '1rem' }}> | ||
| As the negotiations continue, it is clear that compromises will need | ||
| to be made on both sides. House Speaker McCarthy acknowledged that not | ||
| everyone would be pleased with the final outcome, emphasizing that the | ||
| legislative process operates in such a manner. | ||
| </Typography> | ||
| <Typography sx={{ paddingTop: '1rem' }}> | ||
| As the situation unfolds, further updates will be provided. | ||
| </Typography> | ||
| </InsightPage> | ||
| ); | ||
| } |