A Debt Ceiling Agreement Was Passed. Know The Details Of The Debt Ceiling Agreement

Congress recently passed the Fiscal Responsibility Act on June 1, 2023, aimed at avoiding government default.

Debt Ceiling ( Photo: Jagran Josh )

Congress passed the Fiscal Responsibility Act stopping the government from defaulting for the first time

President Joe Biden and House Speaker Kevin McCarthy unveiled the text of a bill to raise the national debt ceiling on Sunday night after Biden’s student loan forgiveness program was blocked. Under the debt cap bill, if you have federal student loans, you’ll have to start making payments again after August 2023. Once you start making payments, you’ll be paying student loan interest again. So remember, you can deduct up to $2,500 in student loan interest on your tax return to increase your refund or reduce your debt.

The debt ceiling bill includes additional work requirements for some people who qualify for the Supplemental Nutrition Assistance Program (SNAP)

The agreement raises the age limit that healthy low-income adults without dependents must work to receive food stamps from 50 to 54. The increased restrictions will expire in 2030. The bill also expands SNAP access for veterans and the homeless. But the agreement on employment requirements is viewed by Democrats as a significant concession. Democrats initially opposed the change, arguing that it would reduce the number of people who could afford to buy food and would not actually increase labor force participation.

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