President Joe Biden said a deal to resolve the government’s debt ceiling crisis seemed “very close” late Friday, even as the deadline for a potentially catastrophic default was pushed back to June 5 and seemed likely to drag negotiations between the White House and Republicans into another frustrating week.
The later “X-date,” laid out in a letter from Treasury Secretary Janet Yellen, set the risk of a devastating default four days later than an earlier estimate. It came as Americans and the world uneasily watched the negotiating brinkmanship that could throw the U.S. economy into chaos and sap world confidence in the nation’s leadership.
Biden and Republican House Speaker Kevin McCarthy seemed to be narrowing on a two-year budget-slashing deal that would also extend the debt limit into 2025 past the next presidential election. After frustrating rounds of closed-door talks, a compromise had appeared to be nearing on Friday. But many of the hard-right Trump-aligned Republicans in Congress have long been skeptical of Treasury’s projections, and they are pressing McCarthy to hold out.
While the contours of the deal have been taking shape to cut spending for 2024 and impose a 1% cap on spending growth for 2025, the two sides remain stuck on various provisions. The debt ceiling, now at $31 trillion, would be lifted for two years to pay the nation’s incurred bills. Weeks of negotiations between Republicans and the White House have failed to produce a deal - in part 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.One idea is to set the topline budget numbers but then add a “snap-back” provision to enforce cuts if Congress is unable during its annual appropriations process to meet the new goals.
The teams are also eyeing a proposal to boost energy transmission line development from Sen. John Hickenlooper, D-Colo., to facilitate the buildout of an interregional power grid.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Biden says debt default deal 'very close' while deadline now set at June 5An upbeat President Joe Biden says a deal to resolve the government’s debt ceiling crisis seems “very close.' He spoke late Friday, shortly after Treasury Secretary Janet Yellen pushed the deadline for a potentially catastrophic default back to June 5, an announcement that at first seemed likely to drag negotiations between the White House and Republicans into another frustrating week. House Republicans led by Speaker Kevin McCarthy spent the day negotiating by phone and computers with the White House. Biden said he would know by midnight whether there was a deal in the offing.
Read more »
Democrats demanding President Biden be more aggressive in debt limit talks: Voters 'pulling their hair out'Democrats are demanding that President Biden be more aggressive with Republicans amid the ongoing debt limit negotiations, according to a new report.
Read more »
President Biden and Speaker McCarthy talk while debt ceiling default loomsPolitical Gabfest: White House v. House Republicans is dangerous game with U.S. and world economies at stake
Read more »
House Upholds President Biden’s Solar Tariff Veto - CleanTechnicaToday the U.S. House of Representatives failed to achieve the two-thirds majority necessary to override the President’s veto of the Congressional Review Act legislation that would overturn his two-year solar tariff moratorium.
Read more »
LSU's Sa'Myah Smith Passes Out During President Biden's Speech At White HouseLSU player Sa'Myah Smith passed out during the Tigers' visit to the White House ... but thankfully, she's doing okay.
Read more »
A closer look at President Biden's national antisemitism strategyThe four pillars of the national strategy include raising awareness, improving security, reversing normalization and building solidarity
Read more »