UNITED STATES NEWS

No debt ceiling agreement in White House meeting, though Biden and McCarthy call talks productive

May 21, 2023, 9:05 PM | Updated: May 22, 2023, 5:52 pm

WASHINGTON (AP) — President Joe Biden and House Speaker Kevin McCarthy both said they had a productive debt ceiling discussion late Monday at the White House, but there was no agreement as negotiators strained to raise the nation’s borrowing limit in time to avert a potentially chaotic federal default.

It’s a crucial moment for the Democratic president and the Republican speaker, just 10 days before a looming deadline to raise the debt limit.

around the world relying on U.S. stability, sending shockwaves through the global economy.

Each side praised the other’s seriousness, but basic differences remained. They are at odds over how to trim annual budget deficits. Republicans are determined to cut spending while Biden’s team offered to hold spending levels flat. Biden wants to increase some taxes on the wealthiest Americans and some big companies, but McCarthy said early on that that is out of the question.

“The time of spending, just spending more money in America and government is wrong,” McCarthy after the Oval Office meeting.

In a brief post-meeting statement, Biden called the session productive but merely added that he, McCarthy and their lead negotiators “will continue to discuss the path forward.” McCarthy said their teams would work “through the night.”

Biden said all agreed that “default is not really on the table.”

Though there is no agreement on basic issues, the contours of a deal are seem within reach. Negotiations have narrowed on a 2024 budget year cap that would be key to resolving the standoff. Republicans have insisted next year’s spending cannot be more than 2023 levels, but the White House instead offered to hold spending flat at current numbers.

A budget deal would unlock a separate vote to lift the debt ceiling, now $31 trillion, to allow more borrowing.

Time is growing short. The House speaker promised lawmakers he will abide by the rule to post any bill for 72 hours before voting, making any action doubtful until the end of the week — just days before the potential deadline. The Senate would also have to pass the package before it could go to Biden’s desk to be signed into law.

After a weekend of start-stop talks, both Biden and McCarthy have declared a need to close out a compromise deal. U.S. financial markets turned down last week after negotiations paused amid a jittery economy.

Biden and McCarthy spoke by phone Sunday while the president was returning home on Air Force One after the Group of Seven summit in Japan.

Biden used his concluding news conference in Hiroshima, Japan, to say he had done his part by agreeing to spending cuts and to warn, “It’s time for Republicans to accept that there is no deal to be made solely, solely, on their partisan terms.”

“Now it’s time for the other side to move from their extreme position,” he said.

The call between the two revived talks, and negotiators met for 2 1/2 hours at the Capitol late Sunday evening, saying little as they left.

“We’ll keep working,” said Steve Ricchetti, counselor to the president, as the White House team exited talks late Sunday.

Negotiators for the White House were back at it again for nearly three hours Monday morning with McCarthy’s team at the Capitol ahead of the session at the White House.

But McCarthy continued to blame Biden for having refused to engage earlier on annual federal spending, a separate issue but linked to the nation’s debt.

GOP lawmakers have been holding tight to demands for sharper spending cuts with caps on future spending, rejecting the alternatives proposed by the White House that call for reducing deficits in part with new revenue from taxes.

McCarthy has insisted personally in his conversations with Biden that tax hikes are off the table

Republicans want to roll back next year’s spending to 2022 levels, but the White House has proposed keeping 2024 the same as it is now, in the 2023 budget year. Republicans initially sought to impose spending caps for 10 years, though the latest proposal narrowed that to about six. The White House wants a two-year budget deal.

A compromise on those topline spending levels would enable McCarthy to deliver for conservatives, while not being so severe that it would chase off the Democratic votes that would be needed in the divided Congress to pass any bill.

Republicans also want work requirements on the Medicaid health care program, though the Biden administration has countered that millions of people could lose coverage. The GOP additionally introduced new cuts to food aid by restricting states’ ability to waive work requirements in places with high joblessness. But Democrats have said any changes to work requirements for government aid recipients are nonstarters.

GOP lawmakers are also seeking cuts in IRS money and, by sparing Defense and Veterans accounts from reductions, would shift the bulk of spending reductions to other federal programs.

The White House has countered by keeping defense and nondefense spending flat next year, which would save $90 billion in the 2024 budget year and $1 trillion over 10 years.

All sides have been eyeing the potential for the package to include a framework to ease federal regulations and speed energy project developments. They are all but certain to claw back some $30 billion in unspent COVID-19 funds now that the pandemic emergency has officially lifted.

For months, Biden had refused to engage in talks over the debt limit, contending that Republicans in Congress were trying to use the borrowing limit vote as leverage to extract administration concessions on other policy priorities.

But with June nearing and Republicans putting their own spending legislation on the table, the White House launched talks on a budget deal that could accompany an increase in the debt limit.

McCarthy faces a hard-right flank that is likely to reject any deal, which has led some Democrats encouraging Biden to resist any compromise with the Republicans and simply raise the debt ceiling on his own to avoid default.

The president, though, said he was ruling out the possibility, for now, of invoking the 14th Amendment as a solution, saying it’s an “unresolved” legal question that would become tied up in the courts.

___

Miller reported and Associated Press writer Josh Boak contributed from Hiroshima, Japan. Associated Press writers Kevin Freking, Farnoush Amiri, Seung Min Kim, Darlene Superville, Fatima Hussein, Colleen Long and Will Weissert contributed to this report from Washington.

United States News

Associated Press

New Jersey house explosion hospitalizes 5 people, police say

WEST MILFORD, N.J. (AP) — Five people were transported to hospitals after an explosion at a New Jersey home on Friday night, police said. The house in West Milford was heavily damaged by the explosion around 9 p.m., the West Milford Police Department said in a statement. A sixth person at the scene refused additional […]

2 hours ago

Associated Press

Tropical Storm Ophelia makes landfall in North Carolina as coastal areas lashed with heavy rain

ANNAPOLIS, Md. (AP) — Tropical Storm Ophelia made landfall on the North Carolina coast early Saturday, lashing coastal areas with damaging winds and dangerous surges of water, the U.S. National Hurricane Center said. Radar, hurricane hunter aircraft and observers on the ground found that Ophelia’s center came ashore at around 6:15 a.m. near Emerald Isle […]

6 hours ago

This Aug. 17, 2021 photo shows Quagga mussels cover the engine of a Bell P-39 Airacobra military pl...

Associated Press

Historians race to find Great Lakes shipwrecks before quagga mussels destroy the sites

MADISON, Wis. (AP) — The Great Lakes’ frigid fresh water used to keep shipwrecks so well preserved that divers could see dishes in the cupboards. Downed planes that spent decades underwater were left so pristine they could practically fly again when archaeologists finally discovered them. Now, an invasive mussel is destroying shipwrecks deep in the […]

7 hours ago

This image provided by Tulane University shows Nick Spitzer, host of the weekly public radio music ...

Associated Press

Louisiana folklorist and Mississippi blues musician among 2023 National Heritage Fellows

NEW ORLEANS (AP) — Louisiana folklorist Nick Spitzer and Mississippi blues musician R.L. Boyce are among nine 2023 National Heritage Fellows set to be celebrated later this month by the National Endowment for the Arts, one of the nation’s highest honors in the folk and traditional arts. Spitzer and Boyce are scheduled to accept the […]

7 hours ago

Republican presidential candidates, from left, former Arkansas Gov. Asa Hutchinson, former New Jers...

Associated Press

3rd Republican presidential debate is set for Nov. 8 in Miami, with the strictest qualifications yet

The third Republican presidential debate will be held in Miami on Nov. 8, a day after several states hold off-year elections.

9 hours ago

During the equinox, the Earth’s axis and its orbit line up so that both hemispheres get an equal ...

Associated Press

The fall equinox is here. What does that mean?

The equinox arrives on Saturday, marking the start of the fall season for the Northern Hemisphere. But what does that actually mean?

10 hours ago

Sponsored Articles

Sanderson Ford...

Sanderson Ford

Sanderson Ford congratulates D-backs’ on drive to great first half of 2023

The Arizona Diamondbacks just completed a red-hot first half of the major league season, and Sanderson Ford wants to send its congratulations to the ballclub.

...

Mayo Clinic

Game on! Expert sports physicals focused on you

With tryouts quickly approaching, now is the time for parents to schedule physicals for their student-athlete. The Arizona Interscholastic Association requires that all student-athletes must have a physical exam completed before participating in team practices or competition.

...

OCD & Anxiety Treatment Center

5 mental health myths you didn’t know were made up

Helping individuals understand mental health diagnoses like obsessive compulsive spectrum disorder or generalized anxiety disorder isn’t always an easy undertaking. After all, our society tends to spread misconceptions about mental health like wildfire. This is why being mindful about how we talk about mental health is so important. We can either perpetuate misinformation about already […]

No debt ceiling agreement in White House meeting, though Biden and McCarthy call talks productive