Biden and McCarthy to meet on the debt ceiling with only 10 days until U.S. risks default

WASHINGTON, DC – MARCH 17: U.S. President Joe Biden (L) and Speaker of the House Kevin McCarthy (R-CA) attend the Friends of Ireland Luncheon at the U.S. Capitol on Saint Patrick’s Day, March 17, 2023 in Washington, DC. Biden joined Irish Taoiseach Leo Varadkar, Speaker of the House Kevin McCarthy (R-CA) and different members of Congress for the conventional St. Patrick’s Day Friends of Ireland Luncheon. (D-MA). (Photo by Drew Angerer/Getty Images)

Drew Angerer | Getty Images News | Getty Images

WASHINGTON — White House negotiators and representatives of House Speaker Kevin McCarthy resumed debt ceiling talks Monday morning, as President Joe Biden ready to meet with McCarthy face to face with only 10 days to go until the U.S. risks default.

The talks got here after a dramatic weekend throughout which negotiations broke down Friday over an obvious deadlock on authorities spending ranges however resumed a number of hours later.

Biden and McCarthy spoke by telephone Sunday night, a dialog they described as “productive” and which may set the stage for anticipated progress towards a deal in the first a part of this week. Biden and McCarthy are set to meet at 5:30 p.m. ET Monday in the Oval Office.

The White House group, composed of presidential counselor Steve Ricchetti, Office of Management and Budget Director Shalanda Young and legislative affairs director Louisa Terrell, declined to communicate with reporters as they walked into the Capitol for talks with McCarthy’s aspect Monday.

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Treasury Secretary Janet Yellen reaffirmed on Sunday that June 1 is the authorities’s “laborious deadline” to increase the debt restrict or face a probable first ever nationwide debt default.

“We count on to be unable to pay all of our bills in early June, and presumably as quickly as June 1,” Yellen advised NBC’s “Meet the Press.”

“My evaluation is that the odds of reaching June 15 whereas having the ability to pay all of our payments is kind of low,” she stated, with the caveat that there would all the time be uncertainty about actual income and funds.

Both Biden and McCarthy have acknowledged that certainly one of the fundamental sticking factors in the talks stays the query of spending caps, a key GOP demand however a pink line to this point for the White House. Raising the debt restrict wouldn’t authorize new spending, however Republicans have insisted on sweeping cuts to authorities outlays as a part of a deal to hike the borrowing restrict.

“The underlying subject right here is that Democrats, since they took the majority, have been addicted to spending. And that is going to cease. We’re going to spend lower than we spent final 12 months,” McCarthy stated to reporters Monday morning in the Capitol.

Biden is hoping to attain a debt restrict deal that will push the subsequent deadline out previous the 2024 presidential election. But House Republicans, who to this point have endorsed only a one-year hike, say that if Biden needs extra time, then he’ll want to agree to much more cuts.

Over the weekend, the president additionally faulted Republicans for demanding that vast chunks of federal discretionary spending be exempted from their proposed topline finances cuts, together with protection and doubtlessly veterans well being advantages.

If these classes have been truly to be exempted, Biden defined, then cuts to all the different discretionary spending would want to be a lot deeper so as to make up the distinction.

Across-the-board cuts like these “make completely no sense in any respect,” Biden stated Sunday in Japan, the place he was attending the Group of Seven Summit. “It’s time for Republicans to settle for that there isn’t a bipartisan deal to be made solely, solely, on their partisan phrases.”

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