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NATaT Special Report on the Debt Limit Deal

June 5, 2023

The Senate approved the debt limit deal  and sent it to the President to sign into law in advance of the June 5 deadline. Attached is a Special Report on the deal that NATaT hopes is helpful to you.

NATaT Special Report: U.S. Debt Limit (PDF)

Table of ContentsIntroduction

Division A – Limit Federal Spending

Discretionary Spending Limits for Fiscal Years 2024 and 2025

Division B – Rescission of Unobligated Funds

Division C – Grow the Economy

Temporary Assistance to Needy Families (TANF)

Supplemental Nutrition Assistance Program (SNAP)

Permitting Reform

Division D – Increase in Debt Limit

President Joe Biden and Speaker Kevin McCarthy (R-Calif) announced on May 27, 2023, that they had agreed to negotiated terms for suspending the $31.4 trillion debt limit for two years, through January 1, 2025. On May 31, the House voted to pass the debt limit legislation, the Fiscal Responsibility Act of 2023 (H.R. 3746) by a vote of314-117, with 165 Democrats and 149 Republicans voting for the bill. On June 1, the Senate passed the legislation by a vote of 63-36. The Congressional Budget Office (CBO) estimates that the legislation will reduce deficits by about $1.5 trillion through FY 2033.

Notably, the Fiscal Responsibility Act does not rescind any funding from the following:

- The American Rescue Plan Act’s (P.L. 117-2) State and Local Fiscal Recovery Fund (SLFRF)

- The Infrastructure Investment and Jobs Act/Bipartisan Infrastructure Law (P.L. 117-58)

- Clean energy tax credits authorized within the Inflation Reduction Act (P.L. 117-169)

- $3.1 billion in funds for the Department of Transportation’s Transit Grants Administrative Pay-As-You-Go (PAY-GO)

The Secretary of the Treasury will be able to utilize “extraordinary measures” to avoid a default on the national debt between January and Spring 2025, providing the newly elected 119th Congress several months to pass new legislation addressing the debt limit issue.

Full Report: https://drive.google.com/file/d/1lOZK1P6G6TgIWQqcS6oCD_pq9sUyT_T1/view?usp=drive_link