WASHINGTON, May 28. /TASS/. Speaker of the US House of Representatives Kevin McCarthy (Republican, State of California) confirmed on Saturday reaching an agreement in principle with President Joe Biden (from Democrats) within consultations on raising the public debt ceiling to avoid a possible federal debt default in the country.

"We have come to an agreement in principle that’s worthy of American people," he told reporters when speaking about reaching a preliminary agreement on raising the public debt ceiling.

"It has historic reductions in spending, consequential reforms that will lift people out of poverty into the workforce, rein in government overreach - there are no new taxes, no new government programs," McCarthy who held a 90-minute phone call with Biden earlier on Saturday, said. "We still have more work to do," he added. McCarthy said he expected to finish writing the bill Sunday and have a vote on the deal on Wednesday, May 31.

The deal would suspend the $31.4 trillion debt ceiling until January of 2025. In exchange, non-defense discretionary spending would be capped at current year levels in 2024 and increased by only 1% in 2025, Reuters said. Defense expenditures will be increased, according to the Washington Post newspaper.

The US administration has called on Congress in recent months to raise the national debt ceiling. Republicans, who are in control of the House of Representatives, are traditionally skeptical about allowing greater debt and are pushing for reducing government spending.

US Treasury Secretary Janet Yellen warned Congress earlier that June 5 was the deadline for debt ceiling to be raised. A default in the US if Congress fails to raise the debt ceiling, would be an economic and financial catastrophe, Yellen noted. Biden and Republicans’ leaders in Congress agreed on holding regular consultations to avoid it.