Democratic and Republican negotiators struggled on Friday to reach a deal to raise the US government $31.4tn debt ceiling, as a key Republican cited disagreements over work requirements for some benefit programs for low-income Americans.
Talks had been reported to be close to conclusion, as lawmakers sought to avoid a disastrous and unprecedented default. Wall Street and European shares rose as the White House and congressional Republicans worked on the final touches of a package to present to Congress.
Negotiators appeared to be nearing a deal to lift the limit for two years and cap spending, with agreement on funding for the Internal Revenue Service (IRS) and the military, Reuters quoted a US official as saying.
“We have made progress,” the lead Republican negotiator, Garret Graves, told reporters. “I said two days ago, we had some progress that was made on some key issues, but I want to be clear, we continue to have major issues that we have not bridged the gap on chief among them work requirements.”
Democrats indicated Joe Biden was willing to consider spending cuts, including to planned extra funding for the IRS, a target of rightwing attacks, the Washington Post
reported. Citing an anonymous official, Reuters said the deal would raise the ceiling for two years “while capping spending on everything but military and veterans”.
Any deal would have to pass the House and Senate, which typically takes days to complete.
Republicans raised the ceiling without preconditions
three times under Donald Trump, while adding to the debt with tax cuts and spending rises.
But McCarthy has only a five-seat majority and is beholden to the far right of his party, which is demanding stringent cuts.
On Thursday the White House press secretary, Karine Jean-Pierre, told reporters: “We’re fighting against Republicans’ extreme, devastating proposal that would slash … law enforcement, education, food assistance, all of these things are critical to American families who are just trying to make ends meet.
”
Now, some on the Republican right, including Trump, the former president and current presidential frontrunner, say the party should let the US default if Biden refuses to cave.
Biden has not been silent. On Thursday,
at the White House, he said Republicans wanted “huge cuts” that would hurt ordinary Americans.
“It’s time for Congress to act, now,” he said, adding: “Under my administration, we’ve already cut the deficit by $1.7tn in our first three years. But Speaker McCarthy and I have a very different view of who should bear the burden of additional efforts to get our fiscal house in order.
“I don’t believe the whole burden should fall on the backs of middle-class and working-class Americans. My House Republican friends disagree.”
Kind of a different vibe than a certain poster has been portraying. Seems like negotiating is happening contrary to his portrayal. Not shocking as said poster is wrong so often.
