President Joe Biden and House Speaker Kevin McCarthy have reached a bipartisan agreement to raise the debt ceiling until 2025, which is positive news for investors. However, gaining approval from Congress may take time and effort.

A deal has been made between President Biden and House Speaker Kevin McCarthy to prevent a US default. Congress must approve this agreement immediately to ensure the government can borrow money until January 2025. In addition, the deal includes spending reductions, changes in work requirements for food stamp recipients, and streamlined environmental reviews for energy projects. Despite potential criticism from conservative hard-liners or GOP members who may not vote for it, it is essential to prioritize progress and ensure McCarthy gathers support from most Democrats to pass the bill in the divided House. Failing to do so could have catastrophic consequences for the American people.

ETRN soared around 40% on Tuesday after the debt ceiling deal, which includes a provision to expedite the stalled Mountain Valley Pipeline. This news is set to help the West Virginia pipeline company complete the project faster, attract more customers, and increase earnings potential. In response, RBC analysts have upgraded the company to Outperform and raised its price target to $10. The company now expects to generate $300-$370 million in 2022, a significant improvement from its previous outlook.

The Biden administration has announced the extension of the student loan repayment pause until 2023. Although the court has not decided on the administration's debt cancellation plan, the Education Department has stated that payments will resume 60 days after the debt relief program is implemented or lawsuits are resolved. Despite a recent federal appeals court ruling against the write-off plan, the administration has emphasized its right to suspend payments and interest charges on hold since March 2020. The payment pause has been extended multiple times already, often just weeks before it was set to end. Private loans are unfortunately not included in the freeze, and this uncertainty continues to make it difficult for borrowers to plan their finances and prepare for the upcoming holiday season.

The IRS needs some help collecting taxes and enforcing tax obligations due to budget cuts. As a result, there has been an unfortunate increase in tax delinquencies and a significant loss of revenue. If the IRS receives stable funding for several years, it can rebuild its workforce and update its outdated technology systems. This will help reduce the tax gap and ensure that all taxpayers are treated fairly while tax evaders face the full consequences of their actions. According to the CBO, an increase in funding for enforcement can result in returns as high as 6.4 times its cost. However, the return may decline in the later years of a funding proposal as the IRS becomes more proficient in implementing new compliance activities. It is essential to consider these factors when evaluating potential solutions for closing the tax gap.

The proposed bill to maintain current spending levels and limit federal spending growth has brought forth different opinions. While major companies like Lockheed Martin and Raytheon may stand to gain from this plan, some conservative members of the House Freedom Caucus may have reservations about the limited reduction in defense spending. Considering all viewpoints is essential, as it could impact our country's economic stability and borrowing costs. As investors, it's crucial to remain abreast of any developments regarding this situation and closely monitor how it unfolds.