Debt ceiling standoff exhibits pivot from pandemic-era spending to deficit prevention

WASHINGTON — One consequence is evident as Washington reaches for a finances deal to finish the debt ceiling standoff: The formidable COVID-19 period of presidency spending to deal with the pandemic and rebuild in its aftermath is giving strategy to a brand new fiscal deal with tailor-made investments and stemming deficits.

President Joe Biden has stated recouping unspent coronavirus cash is “on the desk” in finances talks with Congress. Whereas the White Home has threatened to veto Republican Home Speaker Kevin McCarthy’s debt ceiling invoice with its “devastating cuts” to federal applications, the administration has signaled a willingness to contemplate different finances caps.

The top result’s a turnaround from only a few years in the past, when Congress handed and then-president Donald Trump signed the historic $2.2 trillion CARES Act in the beginning of the general public well being disaster in 2020. It’s a dramatic realignment at the same time as Biden’s bipartisan infrastructure legislation and Inflation Discount Act at the moment are investing billions of {dollars} into paving streets, shoring up the federal security web and restructuring the U.S. financial system.