Biden and McCarthy Describe ‘Productive’ Debt Limit Talks, but No Deal Is Reached

President Biden and House Speaker Kevin McCarthy expressed optimism on Monday that they could break the partisan gridlock that has impeded action to avoid a debt default, but the debt has fallen as Democrats resisted Republican spending demands. There was still a wide gap on whether to agree to raise the cap. cut in exchange.

The two sides met at the White House for the first time in two weeks and exchanged goodwill, after Friday’s moves by Republicans to halt talks and denunciations continued behind-the-scenes clashes between negotiating parties over the weekend. showed intention. For both sides, the other was unreasonable.

With Biden returning from a summit in Japan, things seem to have changed dramatically.

“We still don’t have a deal,” McCarthy told reporters at the White House after the meeting. “But I felt the discussions were productive,” he said, adding later that he believed the tone of the talks was “better than any of the discussions we’ve had.”

“I still believe we can get there,” McCarthy said. “We believe we can get it done.”

He said he plans to meet with Biden daily until an agreement is reached.

With debt defaults looming as early as June 1, Biden and McCarthy are upbeat about finding common ground to avert economic catastrophe, launching latest talks and agreeing in coming days ceased to send a supreme adviser to organize the .

“We still have our disagreements, but I think we might get where we’re going,” Biden said as they sat in the Oval Office. “We both know that we have a great responsibility.”

In a brief post-meeting statement, Mr. Biden said the meeting was “productive.”

“I reiterated that default is off the table and the only way forward is to work in good faith towards a bipartisan deal,” he said, adding that the negotiating team will continue to support McCarthy and others. He said he would continue to talk to him.

Yet the two sides remained at odds. The White House has said the Republican spending cut demands are extreme, while Mr McCarthy and his aides have accused White House officials of unreasonable demands.

The number of days before Congress votes to raise the debt ceiling by its scheduled deadline is rapidly shrinking. Treasury Secretary Janet L. Yellen reiterated Monday: Warning to Congress The U.S. could exceed its borrowing authority to pay bills as early as June 1, he said in an interview. NBC’s “Meet the Press” Over the weekend, it was estimated that the government’s chances of holding out until mid-June were “very unlikely.” By mid-June, it is expected to generate substantial quarterly tax revenues, giving the Treasury more headroom to cover its obligations.

And Republicans have hinted that a deal is unlikely until a default is really imminent. When asked Monday night what it would take to break the impasse, McCarthy simply replied, “June 1.”

Among the most important open questions is how much to spend on discretionary programs over the next fiscal year and how long spending caps should be in place. Republicans want to allow more military spending while cutting other programs. But it did show some flexibility in how long it would limit overall spending, such as lowering the original request from 10 years to six years.

That’s longer than Biden wants. White House officials have proposed holding military spending and other spending, including on education, scientific research and environmental protection, steady for the next two years.

“These are tough questions,” said Rep. Patrick T. McHenry, a North Carolina Republican who was a key ally of Mr. McCarthy’s, who participated in the talks and was present at the White House meeting. . “The mandate to cut spending year-on-year is the hardest thing to do in Washington, D.C., but it is the mandate for the chairman’s negotiating team.

Far-right lawmakers at McCarthy’s convention continue to pressure the speaker to accept less spending cuts than House Republicans passed last month in a debt-saving bill. Spending savings equate to an average reduction of 18% from previous years. 10 years.

‘Republicans have to do this’ #hold the line We need to fix the debt ceiling to bring spending back to reality and restore Washington, D.C.’s fiscal health,” the House Liberties group wrote on Twitter. “We spend more than $100 billion more than our federal tax revenue every month. Washington has a spending problem, not a revenue problem.”

McCarthy expressed confidence that any deal with Biden would keep the conference largely unanimous, and told reporters at the Capitol before the meeting that it would draw support from both Democrats and Republicans. said he believed.

“I strongly believe in what we’re negotiating right now, and the majority of Republicans in Congress will understand that this is the right place to steer us on the right track,” he said.

But he also suggested that members of the council should be prepared to accept a final product that falls short of what some lawmakers have requested.

“At the end of the day, I don’t want people to think that the bill we are proposing will solve all this problem,” he said. “But this will finally be a step in recognizing our problem and taking a step in the right direction.

Once negotiators agree to an agreement, it takes time to translate it into legal text. McCarthy has promised lawmakers 72 hours to consider the bill, and negotiators will need a compromise this week to pass the debt ceiling bill by the scheduled June 1 deadline. agreed on Monday, he said.

Lawmakers remained unclear as to when they would need to attend the default avoidance vote. As of Monday night, the House was due to leave Washington on Thursday afternoon ahead of Memorial Day weekend.

The two countries have found some agreement in talks over the past week, including reclaiming some of the unused funds from previously approved coronavirus relief bills.

Government officials have spoken out about the Biden administration’s Project NextGen. $5 billion COVID-19 vaccine development program, may be among the victims of these amputations. The program is modeled in part on the Trump administration’s Operation Warp Speed, an effort to find various forms of vaccines that scientists believe offer more durable protection against the coronavirus.

However, many other issues remain unresolved, such as stricter work requirements for able-bodied people without dependents for certain safety social net programs. The House Republican-passed bill, which includes tougher requirements for temporary aid and food stamp recipients for needy households, is a key demand of House conservatives.

McCarthy said on Monday that he would continue to push for his inclusion in any deal with Biden, and White House negotiators are willing to find some compromise on the issue. Shows a positive attitude.

Karl Hals Contributed to the report.