The tentative debt deal reached Saturday night drops Republicans' proposed work requirement for Medicaid but would restrain spending levels tightly enough to affect everything from medical research to public health programs.
Why it matters: GOP negotiators had increasingly insisted that Medicaid work requirements needed to be part of the deal, but Democrats were aggressively against such measures.
The details: Medicaid work requirements are out of the package, sources in both parties told Axios.
- Non-defense discretionary spending levels will be kept roughly flat for 2024 and then given a 1% increase in 2025.
- Those spending level caps will have implications for federal research agencies, including HHS, the NIH and CDC.
- The deal also would rescind "tens of billions" in unspent COVID funds, according to a GOP summary obtained by Axios' Andrew Solender.
- In a statement, President Biden called the deal "an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone."
What’s next: Speaker Kevin McCarthy told reporters that legislative text will be released on Sunday, and the House plans to vote on Wednesday.
Editor's note: This story has been updated to include the clawing back of unspent COVID funds.
