WASHINGTON: President Joe Biden and House speaker Kevin McCarthy said they had a productive debt-ceiling discussion on Monday at the White House, but there was no agreement as negotiators strained to raise the nation’s borrowing limit in time to avert a potentially chaotic federal default. They said they will meet again on Tuesday.
It’s a crucial moment for the Democratic president and the Republican speaker, just 10 days before a looming deadline to raise the debt limit.
As soon as June 1, treasury secretary Janel Yellen said in a letter to Congress, “it is highly likely” the government will be unable to pay all the nation’s bills. Such an unprecedented default would be financially damaging for many Americans and others around the world relying on US stability.
Each side praised the other’s seriousness, but basic differences remained. They are at odds over how to trim annual budget deficits. Republicans are determined to cut spending while Biden’s team offered to hold spending levels flat. Biden wants to increase some taxes on the wealthiest Americans and some big companies, but McCarthy said early on that is out of question.
In a post-meeting statement, Biden said he, McCarthy and their negotiators “will continue to discuss the path forward.” He said all agreed that “default is not really on the table”. Though there is no agreement on basic issues, the contours of a deal seem within reach. A budget deal would unlock a separate vote to lift the debt ceiling, now $31 trillion, to allow more borrowing.
The two sides, however, have found some common ground on areas, including permit reform that will help energy projects move forward and clawing back unused Covid funds. They are discussing imposing stricter work requirement on two popular public benefit programmes. But leaders cautioned nothing has yet to be agreed upon.
It’s a crucial moment for the Democratic president and the Republican speaker, just 10 days before a looming deadline to raise the debt limit.
As soon as June 1, treasury secretary Janel Yellen said in a letter to Congress, “it is highly likely” the government will be unable to pay all the nation’s bills. Such an unprecedented default would be financially damaging for many Americans and others around the world relying on US stability.
Each side praised the other’s seriousness, but basic differences remained. They are at odds over how to trim annual budget deficits. Republicans are determined to cut spending while Biden’s team offered to hold spending levels flat. Biden wants to increase some taxes on the wealthiest Americans and some big companies, but McCarthy said early on that is out of question.
In a post-meeting statement, Biden said he, McCarthy and their negotiators “will continue to discuss the path forward.” He said all agreed that “default is not really on the table”. Though there is no agreement on basic issues, the contours of a deal seem within reach. A budget deal would unlock a separate vote to lift the debt ceiling, now $31 trillion, to allow more borrowing.
The two sides, however, have found some common ground on areas, including permit reform that will help energy projects move forward and clawing back unused Covid funds. They are discussing imposing stricter work requirement on two popular public benefit programmes. But leaders cautioned nothing has yet to be agreed upon.