it's a done deal the U.S avoiding a default on its debt which many critics believed would devastate the nation's economy instead late Thursday night the Senate gave final approval on bipartisan legislation that suspends the debt limit and creates new spending caps President Biden celebrated the Bill's passage in the Senate and is expected to soon sign off on the bill ahead of his address to the nation from the Oval Office on Friday evening Biden says the agreement protects our historic and hard-earned economic recovery and all the progress that American workers have made in the last two years for more we're joined by our very own budget and finance writer John reitmeyer, John thanks for joining me so it's a done deal Biden has described this as a bipartisan agreement and a big win for the economy so breakdown what is negotiated in this package and why is no one happy about it yeah sure Raven it's nice to be with you also so the the big thing is it gives a green light to the federal government to continue borrowing and paying its bills and that prevents what was the worst case scenario which would be not being able to pay the federal government's bills including defaulting on debt payments so that's a that's a big thing also in the agreement are some spending caps and the Congressional budget office has estimated that would save about one and a half trillion dollars over the next decade and then as we look a little deeper into the deal there are some rescission of federal covet Aid mostly at the federal level and then John specifically what does this mean for us here in Jersey and does it does it impact legislators negotiating the budget here yeah and that was the big thing we were keeping a close eye on and and as the final deal came together the real bad outcome that would have affected state budget negotiations would would have been a default by the federal government that upset the markets and changed the dynamic for state revenue collections going forward because you'd be looking at a totally different economic landscape so the fact that the this that outcome has been avoided means full steam ahead for state budget negotiations and then at one point there was talk about more reaching far-reaching pullback of federal coven money in New Jersey still has coveted money that remains unspent and so there were some concerns initially but they they went away as the negotiations went forward I thought another interesting move was that joint statement that was put out that this legislation includes that they cannot block military funding and we think about a to Ukraine for example absolutely and so some of the the concerns are what happens going forward and that was one of them that came up in the Senate yesterday before the vote and at one point looked like it might be an impediment to this getting through on schedule because remember what has been identified as the X date for when this deal has to you know be in place signed by the president was June 5th and so they were able to get that agreement in place and that mint smooth sailing still concerns about the U.S credit rating going forward due to this type of partisanship and brinksmanship so that remains an issue but definitely it looks like you know in place in time for paying bills on time well I was going to bring that up because there are consequences for really it being right down to the wire yeah and perhaps now this should prompt some discussion about is this really the best way to do this going forward you know the federal government does borrow to help pay for its annual budget so that's an issue but then with this borrowing limit coming up now and then you get into these types of situations and again that's bad for the market and investors as a whole thank you again for joining me John reitmeyer you're welcome [Music]