Speaker of the House Kevin McCarthy, R-Calif., speaks to members of the media after arriving at the US Capitol on Friday.
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Speaker of the House Kevin McCarthy, R-Calif., speaks to members of the media after arriving at the US Capitol on Friday.
Win McNamee/Getty Images
According to a source familiar with the negotiations, negotiators worked out some details of the deal to prevent the country from defaulting soon after.
The contours of a debt ceiling deal have largely been outlined – including discretionary spending and defense spending – but sticking points include work and permit requirements, the source told NPR .
House Speaker Kevin McCarthy told reporters Friday morning that it was “tough times.”
“We know it’s not easy, but we’re going to make sure we’re not just trying to get a deal,” he said. “We’re trying to achieve something worthy of the American people to change the trajectory.”
The deal being worked on by negotiators would raise the government’s borrowing limit for two years, while also placing a two-year limit on federal spending, said the source, who was not authorized to speak on the talks. judgment is taking place. Preliminary details were first reported by The New York Times.
The two sides are also close to reaching an agreement on IRS funding, which Republicans are hoping to cut. But both sides are learning about the job requirements for social welfare programs.
On Monday, Treasury Secretary Janet Yellen reiterated her warning that Congress has until about June 1 to raise or suspend the debt limit. McCarthy has vowed to give members 72 hours to review the text before placing it for a floor vote. The Senate would then have to vote on the measure if passed by the House.
Most economists agree an actual default may result in during the recession. ONE Default will seriously affect the financial market, increase mortgage rates and interest rates on credit cardscan leave government employees and Social Security recipients unpaid, and can make it difficult for businesses and people to get loans.
McCarthy told reporters on Friday that negotiators worked through the night on Thursday and he believes they have made progress.
Representative Patrick McHenry, one of McCarthy’s negotiators, told reporters Friday afternoon: “There’s progress ahead but every time there’s progress the remaining issues get tough and more challenging”.
McHenry said negotiators for the administration do not currently plan to meet McCarthy in person on Friday, but the two groups continue to talk virtual.
