Defense And Veterans Affairs Spending Addressed in Fiscal Responsibility Act

President Biden has signed into law the new debt ceiling agreement that he reached with U.S. House of Representatives Speaker Kevin McCarthy (R-CA). The Fiscal Responsibility Act (FRA) suspends — as opposed to raising — the debt ceiling until 2025, after the next presidential election.

The FRA provides Biden’s budgeted funding for the military and veterans affairs for 2024, adjusted for inflation. Total defense spending will grow to $886 billion in 2024 and $895 billion in 2025.

Over the next several days, we will address other notable provisions.

Please feel free to reach out to your ELO Tax Advisor for more information or clarity on these changes.