Saturday evening, President Joe Biden and Speaker of the House Kevin McCarthy (R-CA) finally negotiated a deal to raise the looming federal debt ceiling ending the months-long stalemate between the opposing sides.
Reuters reported that two sources with inside information claimed that the White House and negotiators for House Republicans were able to reach an agreement that would avoid the default. The agreement is not entirely set in stone yet, with one of the sources stating “I’m not sure it’s completely settled. Might be one or two small things they need to finish. But close enough to move forward.”
The report comes after McCarthy and Biden were slated to have a 90-minute phone call Saturday evening to discuss the potential solution.
The decision seems to come in just the nick of time as the Treasury Department warns of the looming default that would be reached on the expected date of June 5th. The deal would still need to be drafted and passed through Congress so they aren’t quite out of the woods yet.
The agreement comes after many weeks of stalling negotiation between the two sides. The Republicans pushed for major spending cuts before agreeing to extend the default but the Biden administration has pushed back, refusing negotiations at times.
Biden has voiced his intent to use the 14th Amendment to overcome the crisis crafted by his own administration, ignoring the looming deadline, per the DC Enquirer. Biden also repeatedly blamed Republicans for not making any concessions in negotiations all while also refusing to make negotiations as well.
Republicans have voiced their opinion strongly to “hold the line” in the debt ceiling negotiations, aware of the party’s upper hand within the talks. Rep. Matt Gaetz (R-FL) recently stated that the Republican Party did not need to “negotiate with our hostage,” pointing to the notable advantage that the right has in the discussion, per the DC Enquirer.
Republicans in the discussion have pushed for an eight percent cut to all discretionary spending in the coming fiscal year alongside a one percent annual increase for several years after. Biden has proposed keeping spending flat in 2024 and raising it by one percent the year after, making no actual cuts to the budget.
Whether this deal will make it all the way through is unknown, as on top of the House Republicans' approval, at least nine Republican Senators would need to support the measure for it to fully make it through. Only time will tell if this agreement will be a success, but the chance of a default seems a little slimmer now.
Reuters reported that two sources with inside information claimed that the White House and negotiators for House Republicans were able to reach an agreement that would avoid the default. The agreement is not entirely set in stone yet, with one of the sources stating “I’m not sure it’s completely settled. Might be one or two small things they need to finish. But close enough to move forward.”
The report comes after McCarthy and Biden were slated to have a 90-minute phone call Saturday evening to discuss the potential solution.
The decision seems to come in just the nick of time as the Treasury Department warns of the looming default that would be reached on the expected date of June 5th. The deal would still need to be drafted and passed through Congress so they aren’t quite out of the woods yet.
The agreement comes after many weeks of stalling negotiation between the two sides. The Republicans pushed for major spending cuts before agreeing to extend the default but the Biden administration has pushed back, refusing negotiations at times.
Biden has voiced his intent to use the 14th Amendment to overcome the crisis crafted by his own administration, ignoring the looming deadline, per the DC Enquirer. Biden also repeatedly blamed Republicans for not making any concessions in negotiations all while also refusing to make negotiations as well.
Republicans have voiced their opinion strongly to “hold the line” in the debt ceiling negotiations, aware of the party’s upper hand within the talks. Rep. Matt Gaetz (R-FL) recently stated that the Republican Party did not need to “negotiate with our hostage,” pointing to the notable advantage that the right has in the discussion, per the DC Enquirer.
Republicans in the discussion have pushed for an eight percent cut to all discretionary spending in the coming fiscal year alongside a one percent annual increase for several years after. Biden has proposed keeping spending flat in 2024 and raising it by one percent the year after, making no actual cuts to the budget.
Whether this deal will make it all the way through is unknown, as on top of the House Republicans' approval, at least nine Republican Senators would need to support the measure for it to fully make it through. Only time will tell if this agreement will be a success, but the chance of a default seems a little slimmer now.
- Article Source:
DC Enquirer
- Photo: Photo by Drew Angerer/Getty Images / Getty Images
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