U.S. president Joe Biden and House speaker Kevin McCarthy appear close to a deal to raise the debt ceiling limit while also making some spending cuts, according to a U.S. Official
U.S. president Joe Biden and top republican leader Kevin McCarthy met virtually on Thursday to discuss a deal to increase the debt ceiling of $ 31.4 trillion for the next two years, though failed to reach a deal. It was reported that both sides are just $ 70 billion apart from a deal that would increase the total limit up to $ 1 trillion. Both sides have constantly accused each other of extreme demands, which has become a hurdle in the way of a bipartisan agreement.
The final deal would also clarify how much amount the government is going to spend on discretionary programs such as education but the spending would not be broken into individual categories. Republican negotiators have shown reluctance that the military spendings would increase with less focus on non-military spending. Their opinion is that both entities should receive equal allocation of funds.
Lawmakers left the capitol for Memorial weekend, though they would have to return on a 24 hour notice period if needed. The bill has to be passed in the Republicans controlled House of Representatives and the democrats controlled senate.
Janet Yellen warns on debt default deadline
U.S. treasury secretary Janet Yellen has warned early in the afternoon that the United States will be highly unlikely to pay its bills in June, as soon as 1st day of June. She said that the treasury will run out of resources in order to meet the government’s obligations if the debt ceiling is not increased or suspended. Though it is not clear about the precise date when the treasury will run out of resources, Janet Yellen has warned that it could be as soon as June 1.
McCarthy says he and president will talk on debt ceiling everyday until done
House speaker Kevin McCarthy says that he and president Joe Biden will continue to talk everyday until a bipartisan agreement on debt ceiling is made. McCarthy also said that he knew this wasn’t going to be easy.
Kevin McCarthy said in multiple report briefings throughout the day that America has more money than it had ever had in history, but at the same time the highest public debt. McCarthy insists on cutting spendings in order to decrease the growth of debt in coming years. On the other side, president Joe Biden has said many times that he is not going to risk the healthcare and education of over a million Americans. In another press briefing, McCarthy reminded that it’s been 97 days since the democrats are reluctant to meet the demands for a bipartisan bill.
Biden says that there will be no default
President Joe Biden in a press conference assured that there will be no debt ceiling default, and the republicans understand that. He said that the negotiations between the democrats and republicans are about what the budget will look like and not if there will be a default.
President Biden also said that he does not believe that the burden should fall on the middle class and working class Americans. He also proposed for the wealthy to give their share that would eventually bring down the deficit. He proposed that this can happen by programs which close loopholes in the big oil and big pharma industry and a combination of spending cuts can help them reach their goal in the short and long term. President Biden concluded that the only way to move forward is a bipartisan agreement in order to protect the hard working people of the country.
The White House is a week away from the date on which the U.S. could be on a debt default.