Deadline looming, Biden and McCarthy narrow in on budget deal to lift debt ceiling

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Days from a deadline, President Joe Biden and House Speaker Kevin McCarthy are narrowing in on a two-year budget deal that could unlock a vote for lifting the nation’s debt ceiling. They’re racing for agreement this weekend. As soon as June 1, Treasury says it could run short of funds to pay the nation’s bills. A federal default on the national debt would send the economy into chaos. The budget flow isn’t the only hang-up. One thorny issue is a Republican demand opposed by Democrats for stiffer work requirements on people who receive government aid. Any compromise needs support from both Democrats and Republicans to pass in Congress. “We knew this would not be easy,” McCarthy, R-Calif., said as he left the Capitol for the evening Thursday. House Republicans have pushed the issue to the brink, displaying risky political bravado in leaving town for the Memorial Day holiday. The U.

S. could face an unprecedented default as soon as June 1, hurling the

In remarks at the White House, Biden said, “It’s about competing versions of America.” Lawmakers are tentatively not expected back at work until Tuesday, just two days from the early June deadline when Treasury Secretary Janet Yellen has said the U.S. could start running out of cash to pay its bills and face a federal default.

Meanwhile, Fitch Ratings agency placed the United States’ AAA credit on warning of a possible downgrade. The White House has offered to freeze next year’s 2024 spending at current levels and restrict 2025 spending, but the Republican leader says that’s not enough.

One idea is to set those topline budget numbers but then add a “snap-back” provision that enforces the cuts if Congress is unable during its annual appropriations process to meet the new goals.

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House conservatives blanch at leaked details of McCarthy-Biden debt talksThe group was already unlikely to support a final bipartisan deal, but lingering anger with Kevin McCarthy could have lasting implications on his speakership.

Democrats acknowledge Biden-McCarthy debt limit deal will likely bow to GOPDemocrats are starting to acknowledge that even the best possible deal President Biden can strike with House Speaker Kevin McCarthy on the debt limit will present a loss for the party.

Biden, McCarthy appear near to deal on US debt ceiling as default loomsU.S. President Joe Biden and top congressional Republican Kevin McCarthy on Thursday appeared to be nearing a deal to cut spending and raise the government’s $31.4 trillion debt ceiling, with little time to spare to head off the risk of default.

McCarthy threatened with GOP rebellion over rumored debt-limit deal with BidenUltra-conservative lawmakers are up in arms over alleged details of a compromise that leaked out of the negotiations.

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