Outline of a Debt Limit Deal

Playbook: “The two sides appear to be in agreement on raising the debt ceiling for two years (through the 2024 election) and essentially capping discretionary spending over that time frame for everything except the Pentagon and veterans programs.”

“Where Republicans relented: GOP negotiators initially demanded that Democrats reduce spending on non-defense programs to FY 2022 levels. But they’ve now agreed to pare back those expectations and meet the White House closer to (but below) its own offer of freezing spending at FY 2023 levels.”

“Where Democrats relented: Because the deal will reduce non-defense discretionary spending below the FY 2023 level, Republicans can say that they secured spending cuts. But the inchoate agreement will also include accounting maneuvers to allow Democrats to shift funds from other places, meaning that the cuts are almost a wash.”

Wall Street Journal: Potential debt ceiling deal starts to take shape as deadline looms.