Debt ceiling agreement signed, prevents disastrous economic consequences

The agreement, which President Biden signed into law June 2, suspends the $31.4 trillion debt limit until January 2025.

The national debt limit has been suspended until January 2025 thanks to a bipartisan debt ceiling agreement. The agreement was passed by the Senate June 1. 

“Tonight, senators from both parties voted to protect the hard-earned economic progress we have made and prevent a first-ever default by the United States,” President Joe Biden said. “No one gets everything they want in a negotiation, but make no mistake: This bipartisan agreement is a big win for our economy and the American people.” 

Biden signed the agreement into law June 2. 

A default on the American debt would’ve had severe negative implications for the irrigation industry, Nathan Bowen, Irrigation Association advocacy and public affairs vice president, told Irrigation Today in May 

“The debt ceiling agreement serves the purpose of preventing an economic calamity,” says Bowen. “It provides a measure of helpful clarity regarding the Supplemental Nutrition Assistance Program and the farm bill. Importantly, the agreement didn’t redirect funds from the Inflation Reduction Act. While the implementation of the IRA has not been perfect, it does present our industry with ongoing opportunities.” 

The agreement suspends the $31.4 trillion debt limit until January 2025, allowing the government to borrow unlimited sums to pay its debts. It also sets new spending levels and amends policy changes on energy project permitting and work requirements on social benefits. 

The agreement passed 63-36. 

“The agreement itself is a positive thing for the industry and the bipartisan effort by leaders on both sides of the aisle is an illustration of how the two parties can come together to get critical legislation to home plate,” says Bowen. “Our elected leaders have a similar responsibility to prioritize the needs of the nation’s farmers and businesses by actively engaging in constructive and collaborative efforts to ensure the successful passage of a comprehensive farm bill this year.” 

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Nathan Bowen, advocacy and public affairs vice president for the Irrigation Association, voiced concerns about the bill’s implications.
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The legislative journey towards a balanced and effective farm bill has been fraught with challenges and steeped in strategic negotiations.
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The CTA requires small businesses with 20 or fewer employees or $5 million or less in revenues to report beneficial owners to the FinCEN.