Full breakdown available
This pages provides a high-level overview of this law. For full list of provisions, line-item appropriations, and specific funding allocations, please view our detailed breakdown.
Summary
Raises the country's borrowing limit to avoid a default and cuts government spending over the next two years to reduce the national debt.
What problem does this solve?
The U.S. government was close to running out of money to pay its bills, which could have caused a major economic crisis. This law prevents that by pausing the debt limit until 2025 and, in exchange, makes cuts to federal spending.
What does this law do?
Suspends the debt limit
Pauses the legal limit on how much money the U.S. government can borrow. This suspension lasts until January 1, 2025, preventing a default on the national debt.
Sets new federal spending caps
Limits discretionary spending for fiscal years 2024 and 2025. It sets separate caps for defense spending and non-defense spending.
Ends the pause on student loan payments
Requires federal student loan payments to restart. The pause on payments and interest will end 60 days after June 30, 2023.
Takes back unspent COVID-19 funds
Rescinds (takes back) billions of dollars in unspent money that was originally approved for COVID-19 relief programs.
Changes SNAP work requirements
Gradually raises the age for work requirements in the Supplemental Nutrition Assistance Program (SNAP) from 49 to 54. It also adds new exemptions for veterans, homeless individuals, and young adults leaving foster care.
Streamlines energy project reviews
Amends the National Environmental Policy Act (NEPA) to speed up environmental reviews by setting deadlines of one year for environmental assessments and two years for more complex environmental impact statements.
Approves the Mountain Valley Pipeline
Approves all remaining permits needed to complete and operate the Mountain Valley Pipeline, a natural gas project, and limits the ability of courts to review these approvals.
Cuts some IRS funding
Rescinds over $1.3 billion of the new funding provided to the Internal Revenue Service (IRS) through the Inflation Reduction Act of 2022.
Modifies TANF work rules
Changes how states get credit for helping people on welfare (TANF) find jobs, making it more likely that states will need to increase the number of recipients participating in work activities.
Who does this affect?
- Federal government agencies
- Federal student loan borrowers
- Recipients of SNAP and TANF benefits
What is the real world impact?
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Avoids a national financial crisis
Prevents the U.S. government from defaulting on its financial obligations, which would have had severe negative effects on the national and global economies.
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Reduces government spending
Imposes limits on federal spending for the next two years and takes back billions in unspent funds from previous laws, aiming to slow the growth of the national debt.
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Speeds up energy projects
Changes environmental review laws to make the approval process for energy projects faster. It specifically approves the Mountain Valley Pipeline, a long-delayed natural gas project.
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Uses the debt limit for political leverage
Forces a political compromise by tying the essential action of raising the debt ceiling to other policy goals, like spending cuts and changes to social programs.
When does this start?
This law has several different start dates for its various parts, including an immediate suspension of the debt limit and a restart of student loan payments in late summer 2023.
Debt limit suspension ends
The suspension of the public debt limit ends on January 1, 2025. On January 2, 2025, the limit will be raised to cover the borrowing that occurred during the suspension.
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Termination of suspension of payments on Federal student loans
Student loan payments resume
The pause on federal student loan payments and interest accrual will end 60 days after June 30, 2023.
SNAP work requirement changes begin
The new age requirements and exemptions for SNAP work rules will apply to all new applications and recertifications starting 90 days after the law was enacted.