Biden, McCarthy Reach Debt Ceiling Deal

President Joe Biden and House Speaker Kevin McCarthy reached a deal this past weekend to the raise the debt ceiling by $4 trillion, which would avoid a default on certain federal government obligations, something projected to occur by June 5. The deal caps weeks of negotiation, with Republicans seeking to cap spending levels and roll back increased IRS funding and Democrats seeking to preserve their many of the programs passed in the last congress, most notably certain green energy subsidies.

The debt ceiling deal caps 2024 and 2025 discretionary spending levels based upon 2023 levels, with a 1% increase allowed for 2025. Republicans win’s also included imposing new work requirements on childless, able-bodied Supplemental Nutrition Assistance Program (SNAP) recipients, as well as also adjust the formula states use to calculate aid as part of the Temporary Assistance for Needy Families (TANF) program.

The deal also will cut $1.9 billion in additional IRS appropriation this year, and a further $20 billion is now set to be reallocated in 2024 and 2025. Democrats, who passed an additional $80 billion in IRS funding as part of the Inflation Reduction Act (IRA) in 2022, claim the additional funding passed last year will lead to a net revenue gain by auditing primarily high earners. Republicans in contrast say the additional funding will primarily increase audits on lower- and middle-earners.

The deal will also force the Biden Administration to resume collecting student loan repayments this summer. It does not prevent Biden’s proposal to cancel $10,000 in student loan debt, which is currently in litigation before the Supreme Court.

 

Turkish President Erdogan Wins New Term

Turkish President Recep Tayyip Erdogan won reelection as president of Turkey Saturday, defeating his rival Kemal Kilicdaroglu 52% to 48% in a runoff. Erdogan’s victory in the election preserves his 20-year rule as Turkey’s head of government, beginning his third decade in power.

Erdogan’s Justice and Development Party (AKP) also retained its control in the Turkish Parliament, winning a coalition majority with its partner Nationalist Movement Party (MHP) in the May 14 elections. Erdogan himself narrowly fell short of a majority in that election, leading to Sunday’s runoff.

Erdogan, who has strong support from the country’s working class and rural areas, has been a populist force in his two-decade tenure leading the country, often appealing to nationalist and economically populist policies and rhetoric to maintain support. In his victory speech to supporters, he made allusions to Monday’s 570th anniversary of the Ottoman conquest of Constantinople (modern day Istanbul), a pivotal date in Turkey’s history.

Former US Secretary of State Henry Kissinger Turns 100

Former US Secretary of State and National Security Advisor Henry Kissinger celebrated his 100th birthday Saturday. Kissinger, who served in the Nixon and Ford administrations, is most noted for negotiating a ceasefire in the Vietnam War and engineering the US opening of relations with communist China. After his service, he became a widely sought-after voice on foreign affairs.

Kissinger’s legacy has also been marked with controversy, including his role in the US bombing of Cambodia, support for the Argentinian military junta during the ‘Dirty War’, and support for Augusto Pinochet’s 1973 coup in Chile.