well President Biden and house Speaker Kevin McCarthy reached a deal over the holiday weekend to raise the U.S debt ceiling an agreement designed to avert a catastrophic default which is just days away but the bill faces a tough path to bipartisan approval facing its first crucial test today going for a vote in the house rules committee where some of the Bill's loudest conservative critics have said they'll oppose advancing the legislation for a full house vote for all the latest details including what's in this debt ceiling Bill and how it'll impact New Jersey I'm joined by budget and finance writer John reitmeyer so John this drama is far from Over the first test is happening right now what do we know about what's in this proposal yeah the big picture uh pieces of this right now is uh four four trillion added to the debt limit which is sounds like a big number it's not a big number for Washington DC pushes it out to January of 2025 before we have to have these types of debates again so that's that's a big win for the president who runs for reelection right conveniently post election there correct and then you know the spending caps the Republicans were seeking far more dramatic changes to to spending and caps on spending and so the spending caps are really only for the next two years you could argue that with inflation running as high as it is that these are Cuts in the sense that the the spending cap will limit spending to less than the rate of rates of inflation we've been seeing so really it's a true bipartisan compromise there are not uh as dramatic of changes to some of the social services programs but still new work requirements for the food stamp program and you know some environmental regulatory changes so some things I Republicans were seeking made it into the deal but maybe not everything that they had put in the bill that had made it through the house last month yeah and of course we're hearing that progressives are not happy with it uh many conservative Republicans are not happy with it which is usually the Hallmark of a good plan if not everybody's happy that means real compromise was achieved yeah I think this really is a bipartisan deal the president ran as someone who said he could bring both sides together in our you know climate of really extreme and divided politics and for those who would like to see things stay at the extremes they're probably not happy with this deal but for those the the big group that likes to see the two sides work together this is exactly what's what's played out as long as you know through this hurdle so we'll see what happens as these votes play out now sort of the rest of the week and into maybe next week right yeah I mean what's our timeline now because the treasury secretary said now the X date is June 5th what does that mean so that means that's when the federal government runs out of money and then has to start picking what bills do we pay and that brings us up to the precipice of a default because if the government has enough money to pay a debt payment then all of a sudden it would default on on its debt which would be really the worst case scenario all right so let's bring it back home New Jersey is in the midst of hashing out our own state budget what effect if any does this have marginal effects really I mean I think the two big things are the really dramatic spending cuts didn't happen and so a lot of the federal programs that the state hinges its own programs to won't be as change changed quite as dramatically as maybe was once proposed so that's probably a good thing and then the this issue of clawing back Federal pandemic Aid we're still getting details on that but it really looks like they were targeting funds at the federal government government level not funds that have already been distributed to the state or local level and so the Murphy Administration sounds very confident that the money that the state has received will not be clawed back so it puts them in a better position yeah especially for some of the programs where we really rely heavily on this Federal uh these federal dollars absolutely and even just this idea of economic uncertainty is seemingly wiped away and that had the big potential to influence state revenue collections all right so it should be a smooth sailing June yeah the shutdown meter is fingers crossed right John Reitmeyer for us thanks John you're welcome [Music]