House Speaker Kevin McCarthy said the sides are still "far apart" but that a deal this week is possible after Treasury warned the U.S. could hit the debt ceiling as soon as June 1.
By Katherine Doyle, Sahil Kapur and Monica Alba
WASHINGTON — President Joe Biden and House Speaker Kevin McCarthy met Tuesday afternoon to discuss a way to break the logjam on the debt ceiling, with fears of a self-inflicted economic calamity growing as Republicans demand spending cuts.
Leaving the meeting, congressional leaders hinted at some progress. McCarthy, R-Calif., said that the sides remain “far Biden and congressional leaders strike optimistic tone after debt ceiling meeting
House Speaker Kevin McCarthy said the sides are still "far apart" but that a deal this week is possible after Treasury warned the U.S. could hit the debt ceiling as soon as June 1.
Link copiedMay 16, 2023, 2:00 PM EEST / Updated May 17, 2023, 12:27 AM EESTBy Katherine Doyle, Sahil Kapur and Monica Alba
WASHINGTON — President Joe Biden and House Speaker Kevin McCarthy met Tuesday afternoon to discuss a way to break the logjam on the debt ceiling, with fears of a self-inflicted economic calamity growing as Republicans demand spending cuts.
Leaving the meeting, congressional leaders hinted at some progress. McCarthy, R-Calif., said that the sides remain “far apart" but that “it is possible to get a deal by the end of the week.”
Failure to reach an agreement to lift the borrowing limit threatens the first-ever default on the nation’s $31.4 trillion debt, an outcome that could prove catastrophic for the U.S. economy and upend the political landscape.
McCarthy, McConnell speak after debt ceiling meeting with Biden
MAY 16, 202301:34wing limit threatens the first-ever default on the nation’s $31.4 trillion debt, an outcome that could prove catastrophic for the U.S. economy and upend the political landscape.
The White House expects staff-level talks will continue while Biden is overseas, and he will be briefed daily while traveling, a source familiar with the negotiations said.
White House officials said before the meeting that they did not expect any kind of completed framework, a source familiar with the discussions said. One area of contention is GOP demands to impose tougher work requirements for federal aid programs, which faces Democratic pushback.
The House-passed proposal, negotiated among GOP members and approved on party lines, would require able-bodied adults up to age 55 to work a minimum of 20 hours per week or satisfy other criteria to get food stamps for more than three months every three years.
But staffers have identified potential areas of common ground in daily talks over the last six days, including reform of permitting for energy and infrastructure projects and the possibility of negotiating spending cuts on a parallel track to raising the debt ceiling.
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