Debt Ceiling Deal Reached

by | Jun 2, 2023 | Peace & Service

President Joe Biden and Speaker Kevin McCarthy (CA-20) reached a budget deal earlier this week. With an agreement in hand, the House and Senate voted to raise the debt ceiling.

Here’s the good news: by raising the debt ceiling, we avoid an economic catastrophe that would have seriously and severely impacted people worldwide.

More positive news: the cuts that emerged from the negotiated agreement were less severe than initially proposed. That is largely thanks to the work of advocates, who pushed back on the devastating, long-term cutbacks to safety net programs proposed and passed by the House in April, which would have translated into a spending reduction of 13-22% across government programs and agencies.

That’s where the good news ends and we get a clear look at what lies ahead.

The final agreement includes two-year spending caps that will limit the funds available for nutrition and housing assistance, community violence intervention programs, international peacebuilding, environmental protection, and more. The Pentagon will face no cuts, even to outdated and unwanted programs.

Summarizing the impact of the agreement, FCNL’s Amelia Kegan said: “For countless American families, life just got expediently more difficult, while for the incredibly wealthy and massive corporations, nothing has changed at all.”

With a deal in hand, Congress can exit this period of manufactured crisis and resume the work of outlining budget priorities for Fiscal Year 2024.

Working within the confines of these new limits, we expect pressure to cut spending will fall especially hard on programs that advance peace and diplomacy.

That’s where we come in. The total size of the federal spending “pie” will be smaller, but Congress still gets to determine how the pie gets divided. By amplifying the importance of peacebuilding, we can ensure that Congress protects and invests in these life-saving initiatives.

Your advocacy helped keep many harmful cuts and provisions out of this week’s budget deal. Now we must continue to work together to protect investments in the critical programs that prevent conflict and heal communities.

Elsewhere

Budget Deal Includes Changes to Energy Policy
Several troubling changes to energy policy were included in legislation to raise the debt ceiling (H.R. 3746). While the bill protects the climate provisions secured through the Inflation Reduction Act (Public Law 117–169), it authorizes the construction of the Mountain Valley Pipeline, a controversial gas project.

It also streamlines the environmental review process for new energy infrastructure projects, prioritizing fossil fuel power generation.

Building the Movement to End Gun Violence
June marks the start of Gun Violence Prevention Month. There have been more mass shootings than days in 2023. Our communities need relief. Read more about efforts to build an intergenerational movement to stop gun violence from FCNL Friend in Washington Peter Murchison.

DACA Faces Renewed Court Challenge
The Deferred Action for Childhood Arrivals (DACA) program is again under threat as the state of Texas heads to court. This is the latest effort to eliminate legal protections for young immigrants. In 2022, the Biden administration finalized a rule to fortify DACA’s protections.

The current legal challenge underscores the need for Congress to create legal pathways to permanent protections for immigrants.

Seeking a Third Way Through Division and Polarization
What can be done to address the deep divisions and dangerous polarization in our country? FCNL’s Bridget Moix, Lauren Brownlee, and Sarah Freeman-Woolpert traveled to the One America Movement Conference in Atlanta, GA, to find out.

They found that guided by our Quaker values, FCNL’s staff and network have all the tools in our toolbox to confront toxic polarization and advance a more just and resilient democracy. Read more.

Decarbonize Your Home
Tax credits secured in the Inflation Reduction Act can be used to decarbonize our homes. Join FCNL’s Jus Tavcar and Friend Barbara Briggs on June 8 to learn how.

The Friends Committee on National Legislation is a national, nonpartisan Quaker organization that lobbies Congress and the administration to advance peace, justice, and environmental stewardship. This Week in the World. The FCNL weekly newsletter of advocacy actions and updates and opportunities to take action on the issues you care about.