June 5, later than previously estimated, Yellen says
with economic around the world.
Anxious retirees and social service groups were among those making default contingency plans as lawmakers left town for the long holiday weekend. The next batch of Social Security checks are due to go out next week.
“The world is watching,” said International Monetary Fund Managing Director Kristalina Georgieva after meeting Friday with Yellen. “Let’s remember we are now in the 12th hour.”
Democrat Biden and the Republican speaker were narrowing differences, laboring to lock in details on a two-year agreement that would restrain federal spending and lift the legal spillover borrowing limit past next year’s presidential election.
Any deal would need to be a political compromise, with support from both Democrats and Republicans to pass the divided Congress.
“We know it’s a crunch,” McCarthy said as he arrived at the emptied out Capitol, acknowledging more progress needed to be made.
In remarks at the White House honoring the Louisiana State University champion women’s basketball team, Biden gave a shoutout to one of this top negotiators saying she’s “putting together a deal, hopefully.”
He was referring to Office of Management and Budget Director Shalanda Young who attended the event as did Rep. Garret Graves of
Louisiana, a top Republican negotiator.
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.
A person familiar with the talks said the two sides were “dug in” on whether or not to agree to Republican demands to impose stiffer work requirements on people who receive government food stamps, cash assistance and health care aid.
House Democrats have called such requirements for health care and food aid a nonstarter.
Asked if Republicans would relent on work requirements Graves, fumed: “Hell no, not a chance.”
House Republicans have pushed the issue to the brink, displaying risky political bravado in leaving town for the Memorial Day holiday. Lawmakers are tentatively not expected back at work until Tuesday, just two days from the June 1 “X-date” when Treasury Secretary Yellen has said the U.S. could face default.
Biden will also be away this weekend, departing Friday for the presidential retreat at Camp David, Maryland, and Sunday for his home in Wilmington, Delaware. The Senate is on recess and will return after Memorial Day.