McCarthy says negotiators are `closer to an agreement'
WASHINGTON >> House Speaker Kevin McCarthy said Saturday that Republican negotiators were “closer to an agreement” that would resolve the looming debt crisis, but had not reached a deal with President Joe Biden.
He said there was no firm timeline for a final compromise that would raise the nation's borrowing limit and avoid a catastrophic default while also making spending cuts that House Republicans are demanding. House negotiators left the Capitol after 2 a.m. and returned hours later.
“We'll get it when it gets right,” McCarthy, R-Calif., said as he arrived on Capitol Hill.
McCarthy's comments echoed the latest assessment from Biden, who said Friday evening that bargainers were “very close.”
Their optimism came as Treasury Secretary Janet Yellen told Congress that the United States could default on its debt obligations by June 5 — four days later than previously estimated — if lawmakers do not act in time to raise the federal debt ceiling. The extended “X-date” gives the two sides a bit of extra time as they scramble for a deal.
The president, spending part of the weekend at Camp David, continued to talk with his negotiating team multiple times a day, signing off on offers and counteroffers. Biden was upbeat as he departed the White House on Friday evening, saying: “It's very close, and I'm optimistic.”
Both sides have suggested one of the main holdups is a GOP effort to expand existing work requirements for recipients of food stamps and other federal aid programs, a longtime Republican goal that Democrats have strenuously opposed. The White House said the Republican proposals were “cruel and senseless.”
They also are hearing from other lawmakers, particularly Rep. Josh Gottheimer, D-N.J., of the bipartisan Problem Solvers Caucus.
McCarthy, who dashed out before the lunch hour and arrived back at the Capitol with a big box of takeout, declined to elaborate on those discussions. One of his negotiators, Louisiana Rep. Garret Graves, said there was “not a chance” that Republicans might relent on the work requirements issue.
Americans and the world were uneasily watching the negotiating brinkmanship that could throw the U.S. economy into chaos and sap world confidence in the nation's leadership,
Failure to lift the borrowing limit, now $31 trillion, to pay the nation's incurred bills, would send shockwaves through the U.S. and global economy. Yellen said failure to act by the new date would “cause severe hardship to American families, harm our global leadership position and raise questions about our ability to defend our national security interests.”
Anxious retirees and others were already making contingency plans for missed checks, with the next Social Security payments due next week.
Biden and McCarthy have seemed to be narrowing on a two-year budget-cutting deal that would also extend the debt limit into 2025 past the next presidential election. 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 Republican proposal on work requirements would save $11 billion over 10 years by raising the maximum age for existing standards that require” able-bodied adults who do not live with dependents to work or attend training programs.
Current law applies those standards to recipients under the age of 50. The GOP plan would raise the age to include adults 55 and under.