Biden and McCarthy sign Fiscal Responsibility Act averting first-ever US debt default

President Biden signs the Fiscal Responsibility Act of 2023 (H.R. 3746), ending a months-long standoff with House Speaker Kevin McCarthy that had pushed the U.S. to the edge of a first-ever debt default. The law suspends the $31.4 trillion debt ceiling until January 2025 in exchange for caps on non-defense discretionary spending, clawback of approximately $28 billion in unused COVID relief funds, and expanded work requirements for SNAP (food stamp) recipients up to age 54. The CBO estimates the deal reduces the deficit by $1.5 trillion over 10 years. Democrats criticize the SNAP work requirements. Republicans call the spending caps insufficient.