With the possibility of a federal debt default looming just over a week away, House Speaker Kevin McCarthy on Wednesday urged President Biden and Congressional Democrats to raise the debt ceiling and allow the Treasury Department to avoid missing payments. He reiterated his urge to accept spending cuts.
“We have to spend less than we spent last year,” McCarthy said at a Capitol press conference where negotiators from the Biden administration and Republicans gathered at the White House. “It’s not that hard. But somehow in Washington it’s a problem.”
With the administration moving away from cuts and instead pushing to freeze current spending levels, Mr. McCarthy has made cuts to domestic programs a central demand in the negotiations. Republicans have argued against cuts to defense spending and veterans, and the brunt of the cuts will affect social institutions favored by Democrats.
Despite a series of regular meetings, negotiators report little progress on the deal. Still, McCarthy continued to express hope that a deal could be reached by the June 1 deadline.
“I think we can move forward today,” he told reporters at the Capitol. “I hope we can do that.”
McCarthy needs a significant number of Democrats to pass the bill, as right-wing Republicans have vowed to oppose any compromise that rolls back the cuts that are part of the debt-saving bill that was approved last month in line with party policy. A vote is likely to be required. agreement. But Congressional Democrats are resisting cuts in the overall budget.
The House is set to enter a weeklong recess on Memorial Day starting Friday, and McCarthy must decide whether to keep lawmakers in Washington or send them home and bring them back if a deal is reached. He has vowed to give lawmakers 72 hours to consider any plan, and the deal is expected to be considered next week.
Treasury Secretary Janet L. Yellen has repeatedly warned that the government could exhaust its ability to meet all its obligations by June 1.
