U.S House Speaker, Kevin McCarthy has stated that house negotiators are making progress toward an agreement with the White House to raise the nation’s debt ceiling, ahead of the looming June 1 deadline.
Nonetheless, McCarthy stressed that there was still more work to do. He said, “I thought we made progress last night, we’ve got to make more progress now.” “Now we’ve got a short timeframe,” he added.
U.S President Joe Biden and the Speaker are striving towards a budget solution that needs to be reached by this weekend. In order to avoid a deadline on June 1, 2023 when Treasury could run out of money to pay the country’s obligations, the two sides are reducing their differences on a two-year accord that would reduce federal spending and raise the borrowing ceiling.
To be approved by the divided Congress, any agreement would need to be a political compromise that had the backing of both Democrats and Republicans.
Weeks of negotiations between Republicans and the White House have failed to produce a deal, partly because the Biden administration resisted negotiating with McCarthy over the debt limit, arguing that the country’s full faith and credit should not be used as leverage to extract other partisan priorities.
The White House has offered to freeze next year’s 2024 spending at current levels and restrict 2025 spending, but McCarthy says that’s not enough.
“We have to spend less than we spent last year. That is the starting point,” McCarthy stated.
The White House has maintained that cutting tax advantages for wealthy individuals and some corporations can lower deficits, but McCarthy claimed that he advised the President that raising taxes was not an option as early as their February meeting.
Right-wing members of the House are exerting pressure on McCarthy to resist making a compromise, even if it means delaying the June 1 deadline.
“Let’s hold the line,” Rep. Chip Roy, a Freedom Caucus member, urged.
McCarthy divulged that former President Donald Trump, who running for office again, told him, “Make sure you get a good agreement.”
Biden, McCarthy Optimistic That Consensus Can Be Reached
Both Biden and McCarthy expressed optimism heading into the weekend that the gulf between their positions could be bridged.
In comments at the White House on Thursday, May 25, 2023, Biden averred, “It’s about competing versions of America.”
“The only way to move forward is with a bipartisan agreement and I believe we’ll come to an agreement that allows us to move forward and protects the hardworking Americans of this country.”
U.S President Joe Biden
Meanwhile, Lawmakers are tentatively not expected back at work until Tuesday, May 30, 2023, just two days from the deadline when U.S Treasury Secretary, Janet Yellen has said the U.S. could start running out of cash to pay its bills and face a federal default.
Moreover, Biden will also be away this weekend, departing on Friday, May 26, 2023, for the presidential retreat at Camp David, Maryland, and Sunday, May 28, 2023, for his home in Wilmington, Delaware. The Senate is on recess and will return after Memorial Day.
Even if negotiators reach an agreement in coming days, McCarthy has pledged to lawmakers that he will abide by the rule to post any bill for 72 hours before voting, now likely Tuesday, May 30, 2023 or even Wednesday, May 31, 2023. The Democratic-held Senate has vowed to move quickly to send the package to Biden’s desk, right before next Thursday’s possible deadline.
Failure to raise the nation’s debt ceiling to pay the nation’s already incurred bills would risk a potentially chaotic federal default.
