HO CHI MINH CITY: debt ceiling Negotiators for President Joe Biden and House Speaker Kevin McCarthy tried to talk more at the Capitol on Tuesday, but Republic warned of a “lack of urgency” at the White House to promptly resolve the budget deadlock to avert the possibility of a chaotic federal default.
With just a week to go until the June 1 deadline, the Democratic president and Republican speaker is looking at a financial crisis. Failure to reach an agreement would be unprecedented and would inevitably plunge US financial markets into turmoil, causing economic damage at home and abroad.
Behind closed doors, McCarthy urged Republicans with a majority in his House to “just stick together” despite their factions as he negotiates the strongest possible deal for conservatives , the legislator leaving the private session said.
“We’re not there yet,” McCarthy said at the Capitol, repeating that he would not introduce any bill “that doesn’t spend less than we’ve spent this year.”
Senior Republican lawmakers were told they could resume their planned week off around Memorial Day away from Washington, which will begin after Thursday’s session. But McCarthy has warned they will be available in 24 hours to return to vote on any deal.
Stretching into a second week, talks on raising the nation’s debt limit, currently at $31 trillion, should never have happened at this point – a crisis is brewing.
The White House soon insisted it was not willing to talk about the need to pay the nation’s bills, asking Congress to simply lift the cap, as it had done many times before, with no strings attached. .
But newly-elected speaker McCarthy, R-Calif., visited Biden in the Oval Office in February, urging the president to come to the negotiating table for a budget package that would reduce spending and reduce the post-deficit deficit. COVID of the nation in exchange for future debt authorization votes.
Both men said late Monday after a key meeting at the White House – after the president returned from the Group of Seven summit in Japan – that the talks were fruitful.
But with the short time it takes to reach an agreement, they are working to strike a compromise that can be quickly passed by the House and Senate Democrats and signed into law.
Negotiations have focused on finding agreement on the 2024 budget year cap. Republicans insist that next year’s government spending will be less than it is now, but the White House instead proposed proposed a spending freeze at current levels in 2023.
That top spending deal is crucial – to allow McCarthy to introduce a spending cap measure for conservatives while not being so severe that it would eliminate the necessary Democratic votes. in the split Congress to pass any bill.
The White House continues to argue that the deficit can be reduced by ending tax breaks for wealthier households and some corporations, but McCarthy said he told the president at the February meeting that the Increasing revenue from tax increases is undisputed.
Negotiators are also currently debating the length of the 1% cap on future annual spending growth, with Republicans reducing the 10-year cap request to six, but the White House only given a year, in 2025.
Typically, the debt ceiling has been lifted for the duration of a budget deal, and in this negotiation, the White House is trying to strike a two-year deal that will pass the presidential election.
A top Republican negotiator, Representative Patrick McHenry of North Carolina, who joined the Oval Office speaker Monday night, said more urgency was needed. Negotiations resumed Monday night at the Capitol for two hours and resumed at midday Tuesday.
“What I sensed from the White House was a lack of urgency,” McHenry told reporters.
But on the Senate side, Republican leader Mitch McConnell said: “Look, I think people need to relax.” He said that “the last 10 times we raised the debt ceiling, there were things that came with it” – as the White House protested this year.
“This is not unusual.”
However, time is getting shorter and shorter. The Speaker of the House has promised lawmakers he will stick to the rule of posting any bill 72 hours before a vote, making any action questionable until the weekend — just days ago potential deadline. The Senate will also have to pass the package before it can reach Biden’s desk to be signed.
After a weekend of negotiations began, both Biden and McCarthy announced the need to close a compromise deal. U.S. financial markets turned lower last week after talks halted amid a nervous economy.
McCarthy faces a hardline right in his own party that is likely to reject any deal, and that has led to some Democratic Party to encourage Biden to resist any compromise with the Republican Party and simply raise the debt ceiling on his own, an unprecedented and legally risky move.
On Tuesday, the leader of the conservative group House Freedom Caucus Rep. “We all want to stick together,” said Scott Perry. But again, it sticks together around the right thing.”
He and others are increasingly skeptical of the June 1 deadline, which Treasury Secretary Janel Yellen says is when it is “very likely” the government will not be able to pay all of the nation’s bills.
Perry suggests that the Treasury Department will be “full of cash” by June 15 when quarterly tax payments are due.
“There’s absolutely no reason to do this and we all know it,” he said.
As negotiators focus on the more than $100 billion gap between 2022 and 2023 spending plans as a point to cut, other priorities Republicans are pushing as part of the deal remains still on the table.
Republicans also want to strengthen job requirements for government aid for Medicaid recipients, though the Biden administration has countered that millions could lose coverage.
The GOP also wants new food aid cuts by limiting states’ ability to waive job requirements in places with high unemployment. But Democrats have said any changes to job requirements for government aid recipients are unwise.
GOP lawmakers are also looking to cut IRS funding, and by removing defense and veterans accounts from the cuts, will shift most spending cuts to federal programs other states.
The White House has countered by leaving defense and non-defense spending the same next year, which would save $90 billion in budget year 2024 and $1 trillion over 10 years.
All parties have noticed the package’s potential to include a framework to loosen federal regulations and speed energy project development. They will all almost certainly recover about $30 billion in unused COVID-19 funds once the pandemic emergency is officially lifted.
However, the president said he is now ruling out invoking the 14th Amendment as a solution, saying it is an “unresolved” legal question that will be binding in court.
With just a week to go until the June 1 deadline, the Democratic president and Republican speaker is looking at a financial crisis. Failure to reach an agreement would be unprecedented and would inevitably plunge US financial markets into turmoil, causing economic damage at home and abroad.
Behind closed doors, McCarthy urged Republicans with a majority in his House to “just stick together” despite their factions as he negotiates the strongest possible deal for conservatives , the legislator leaving the private session said.
“We’re not there yet,” McCarthy said at the Capitol, repeating that he would not introduce any bill “that doesn’t spend less than we’ve spent this year.”
Senior Republican lawmakers were told they could resume their planned week off around Memorial Day away from Washington, which will begin after Thursday’s session. But McCarthy has warned they will be available in 24 hours to return to vote on any deal.
Stretching into a second week, talks on raising the nation’s debt limit, currently at $31 trillion, should never have happened at this point – a crisis is brewing.
The White House soon insisted it was not willing to talk about the need to pay the nation’s bills, asking Congress to simply lift the cap, as it had done many times before, with no strings attached. .
But newly-elected speaker McCarthy, R-Calif., visited Biden in the Oval Office in February, urging the president to come to the negotiating table for a budget package that would reduce spending and reduce the post-deficit deficit. COVID of the nation in exchange for future debt authorization votes.
Both men said late Monday after a key meeting at the White House – after the president returned from the Group of Seven summit in Japan – that the talks were fruitful.
But with the short time it takes to reach an agreement, they are working to strike a compromise that can be quickly passed by the House and Senate Democrats and signed into law.
Negotiations have focused on finding agreement on the 2024 budget year cap. Republicans insist that next year’s government spending will be less than it is now, but the White House instead proposed proposed a spending freeze at current levels in 2023.
That top spending deal is crucial – to allow McCarthy to introduce a spending cap measure for conservatives while not being so severe that it would eliminate the necessary Democratic votes. in the split Congress to pass any bill.
The White House continues to argue that the deficit can be reduced by ending tax breaks for wealthier households and some corporations, but McCarthy said he told the president at the February meeting that the Increasing revenue from tax increases is undisputed.
Negotiators are also currently debating the length of the 1% cap on future annual spending growth, with Republicans reducing the 10-year cap request to six, but the White House only given a year, in 2025.
Typically, the debt ceiling has been lifted for the duration of a budget deal, and in this negotiation, the White House is trying to strike a two-year deal that will pass the presidential election.
A top Republican negotiator, Representative Patrick McHenry of North Carolina, who joined the Oval Office speaker Monday night, said more urgency was needed. Negotiations resumed Monday night at the Capitol for two hours and resumed at midday Tuesday.
“What I sensed from the White House was a lack of urgency,” McHenry told reporters.
But on the Senate side, Republican leader Mitch McConnell said: “Look, I think people need to relax.” He said that “the last 10 times we raised the debt ceiling, there were things that came with it” – as the White House protested this year.
“This is not unusual.”
However, time is getting shorter and shorter. The Speaker of the House has promised lawmakers he will stick to the rule of posting any bill 72 hours before a vote, making any action questionable until the weekend — just days ago potential deadline. The Senate will also have to pass the package before it can reach Biden’s desk to be signed.
After a weekend of negotiations began, both Biden and McCarthy announced the need to close a compromise deal. U.S. financial markets turned lower last week after talks halted amid a nervous economy.
McCarthy faces a hardline right in his own party that is likely to reject any deal, and that has led to some Democratic Party to encourage Biden to resist any compromise with the Republican Party and simply raise the debt ceiling on his own, an unprecedented and legally risky move.
On Tuesday, the leader of the conservative group House Freedom Caucus Rep. “We all want to stick together,” said Scott Perry. But again, it sticks together around the right thing.”
He and others are increasingly skeptical of the June 1 deadline, which Treasury Secretary Janel Yellen says is when it is “very likely” the government will not be able to pay all of the nation’s bills.
Perry suggests that the Treasury Department will be “full of cash” by June 15 when quarterly tax payments are due.
“There’s absolutely no reason to do this and we all know it,” he said.
As negotiators focus on the more than $100 billion gap between 2022 and 2023 spending plans as a point to cut, other priorities Republicans are pushing as part of the deal remains still on the table.
Republicans also want to strengthen job requirements for government aid for Medicaid recipients, though the Biden administration has countered that millions could lose coverage.
The GOP also wants new food aid cuts by limiting states’ ability to waive job requirements in places with high unemployment. But Democrats have said any changes to job requirements for government aid recipients are unwise.
GOP lawmakers are also looking to cut IRS funding, and by removing defense and veterans accounts from the cuts, will shift most spending cuts to federal programs other states.
The White House has countered by leaving defense and non-defense spending the same next year, which would save $90 billion in budget year 2024 and $1 trillion over 10 years.
All parties have noticed the package’s potential to include a framework to loosen federal regulations and speed energy project development. They will all almost certainly recover about $30 billion in unused COVID-19 funds once the pandemic emergency is officially lifted.
However, the president said he is now ruling out invoking the 14th Amendment as a solution, saying it is an “unresolved” legal question that will be binding in court.
