President Biden and Home Speaker Kevin McCarthy (R-Calif.) will meet on Monday afternoon to renew negotiations on the debt ceiling, McCarthy introduced Sunday.
Will probably be their third assembly this month on the matter. McCarthy informed reporters that in a telephone name with Biden, who’s headed again to Washington, D.C., from Japan, the place he attended the G7 summit, the president “walked by means of a few of the issues that he is nonetheless taking a look at, he is listening to from his members; I walked by means of issues I am taking a look at. I felt that half was productive. However look — there is no settlement. We’re nonetheless aside.”
The debt ceiling is the sum of money the federal government is permitted to borrow to pay its obligations, and Treasury Secretary Janet Yellen has warned that if the restrict is not raised, the nation may run out of money and default on its debt as quickly as June 1. This may “generate an financial and monetary disaster,” she mentioned. “There will probably be exhausting selections to make if the debt ceiling is not raised.”
Republicans wish to lower spending, scale back funding for the IRS and add work necessities for recipients of Medicaid and the Non permanent Help of Needy Households program in alternate for elevating the debt restrict. Biden has mentioned he is open to creating some spending cuts so long as Republicans contemplate elevating tax revenues.