Will the debt ceiling deal save the US from a default?

WAMU 88.5

Published May 30, 2023 at 9:26 AM EDT

The sun rises behind the U.S. Capitol Building in Washington, DC.

On Sunday, one week before the Treasury Department says the United States could run out of cash to pay its bills, House Speaker Kevin McCarthy announced a tentative deal on the government debt ceiling.

Under the agreement, the debt ceiling will be suspended at $31.4 trillion through January of 2025. President Joe Biden told reporters Sunday the deal represents a necessary compromise to avoid catastrophe.

This dealcomeswith just days to spare before a potential first-ever U.S. government default.It still hasto passthrough both the House and Senate before June 5 – members of the House are expected to vote on the bill tomorrow.

We discuss some of the key highlights of the deal.